DP World says net profit rises in 2019, warns against coronavirus impact

DUBAI - Dubai port and logistics giant DP World said Wednesday its net profit for 2019 rose 4.6 percent on increased trade and returns from acquisitions.

The global provider, which runs port operations in more than 40 countries, said in a statement that it posted a net profit of $1.33 billion in 2019, compared to $1.27 billion the previous year.

The state-owned company said its revenue for the year rose 36.1 percent to $7.67 billion, with important contributions from the latest acquisitions.

They included P&O Ferries in the United Kingdom, Topaz Energy & Marine in the United Arab Emirates, and two terminals in Chile - Puerto Central and Puerto Lirquen - as well as the full year impact from Continental Warehousing Corp. in India, Cosmos Agencia Maritima in Peru, and the Unifeeder Group in Denmark.

However, the company warned of the fallout of the coronavirus on the business.

"The near-term outlook remains a cause for concern with global trade disputes, Covid-19 outbreak and regional geopolitics, causing disruption to trade," said DP World chairman and CEO Sultan Ahmed bin Sulayem.

“However, DP World is well positioned to respond in the short term," said Sulayem.

He said that the firm's “long-term approach to business is not aligned with the short term thinking of equity markets,” which is behind its push to delist.

DP World announced last month plans to delist from the Nasdaq Dubai over concerns about looming global economic worries, which will allow the government to get back full control of the firm.

Port and Free Zone World, which owns 80.45% of DP World, will acquire the remaining 19.55% of shares listed on the Nasdaq Dubai, in a deal estimated at $2.7 billion.

DP World capital expenditure for the year, stood at $1.1 billion - short of the planned $1.4 billion.

It said it plans to invest up to $1.4 billion this year.