DP World to focus on integration in 2020

Trade disruptions from global trade disputes, the coronavirus outbreak and regional geo-politics were noted as being a cause for concern. Company remains positive on the medium to long term outlook for the industry however.

News ID: 80487

Date: 12 March 2020 - 12:14

DP World posted a 4.6% rise in 2019 net profit to $1.3bn on a 36.1% rise in turnover to $7.7bn driven by acquisitions and consolidation in Australia.

AMID an uncertain near term outlook, DP World will focus on integrating recent acquisitions and managing costs for the rest of 2020 even as it delivered good profit growth for 2019.

"The near-term outlook remains a cause for concern with global trade disputes, Covid-19 outbreak and regional geo-politics, causing disruption to trade,” said chairman and chief executive officer Sultan Ahmed Bin Sulayem. He added that overall the company remains positive on the medium to long term outlook of the industry.

He noted the company has focused on delivering integrated supply chain solutions to cargo owners and has made inroads into several verticals including the Automotive, Oil & Gas and FMCG industries.

Remarking on the integrated logistics group’s planned de-listing Sultan Ahmed acknowledged that its leverage would rise temporarily however reassured that it is confident of de-leveraging with strong cash generation and free cash flow.

Cash from operating activities amounted to $2.5bn while the company maintained $2.1bn in free cash with a debt ratio of 3.9 times.

“We remain committed to a strong investment grade rating in the medium term,” said Sultan Ahmed, reassuring that continued high levels of cash flow and disciplined investment and potential capital recycling would ensure the company had enough flexibility to maintain a strong balance sheet.