DUBAI, United Arab Emirates (AP) — Dubai-based port operator DP World introduced Thursday its income slid 29% in 2020 from the earlier 12 months to $846 million, because the coronavirus pandemic froze provide chains and upended the world’s commerce flows.
The port operator, which delisted from the stock exchange and returned to full state-ownership final June, confused that it defied analysts’ low expectations for world commerce over the troublesome interval. The maritime agency, one of many world’s largest, has confronted numerous challenges with the virus surging, regional tensions rising and commerce wars persevering with.
In its annual report, DP World stated its income in 2020 climbed 11% to $8.53 million, an increase it attributed to a 12 months of acquisitions. DP World reported revenues of $7.68 billion and income of $1.19 billion in 2019. The port operator’s delisting from the inventory change got here as its guardian firm, Dubai World, sought to repay greater than $5 billion to banks.
Regardless of dismal predictions of slumping world commerce final spring, DP World stated the container terminal trade has proven resilience, pivoting to automation and digital funding. In latest months, the corporate has finished brisk enterprise. DP World struck a $4.5 billion deal with considered one of Canada’s greatest pension-fund managers to develop its footprint in Europe and Asia Pacific final fall. It gained a number of profitable concessions this 12 months to construct huge ports and logistics hubs in Indonesia, Senegal and Angola.
The corporate additionally plans a joint bid with an Israeli port operator for Israel’s newly privatized Haifa Port, following a breakthrough deal to normalize relations between the international locations. In a press convention Thursday, Sultan Ahmed bin Sulayem, DP World’s chairman and CEO, instructed reporters the corporate goals to put money into different key Israeli seaports, together with within the southern cities of Ashdod and Eilat.
“The Israelis have good infrastructure and financial enterprise insurance policies that encourage funding,” bin Sulayem stated, “making European ports accessible to the Center East and the (Indian) subcontinent.”
DP World now operates in 61 international locations alongside among the world’s busiest transport routes, from Brisbane, Australia, within the East to Prince Rupert, Canada, within the West. The corporate has aggressively prolonged its attain up the Horn of Africa, positioning the United Arab Emirates as one of many most important overseas gamers crowding into the strategic Purple Sea. In previous years, the push has helped the nation wield comfortable energy within the area because it builds up military bases.
Bin Sulayem stated he expects to see world commerce rebounding in 2021, inspired by the promise of lifted lockdowns, COVID-19 vaccination campaigns in addition to extra equitable commerce insurance policies from the brand new U.S. administration.
“The geopolitical points are a lot lower than in the course of the Trump administration … the brand new administration is in session with buying and selling companions in a greater technique to resolve any points,” he stated. “The outlook this 12 months appears good.”