DP World’s shares rose six per cent today on the Nasdaq Dubai exchange on the back of the strong revenue growth revealed in its full year results.
The ports operator's revenues were boosted by its 2018 global expansion which saw it spend $2.5bn on acquisitions in India, Peru and Denmark.
Read more: DP World pays £322m for P&O Ferries
The company’s underlying profit for 2018 grew 10.2 per cent to $1.3bn. However, its results also said its overall “profit for the period” dropped 2.2 per cent to $1.3bn, reflecting the costs of its acquisitions.
Revenues rose 20 per cent to $5.6bn from $4.7bn in 2017, while free cash flow amounted to $1.8bn.
Basic earnings per share rose 5.1 per cent to $1.53 from $1.46 for 2017, and DP World’s dividend increased 4.9 per cent to $0.43.
Why it's interesting
DP World announced in February that it had bought back P&O Ferries for £322m, 13 years after selling the British-based company.
The P&O deal is the latest in its global investments in ports and logistics. Last year saw DP World buy global logistics companies Continental Warehousing Corporation in India, Cosmos Agencia Marítima in Peru, and the Unifeeder Group in Denmark.
What DP World said
DP World chief executive Sultan Ahmed Bin Sulayem said: “This robust performance has been delivered in an uncertain trade environment, once again highlighting the resilience of our portfolio.”
“We have made good progress in delivering on our strategy of strengthening our portfolio to become a global solution provider and trade enabler”, he said. “These acquisitions offer strong growth opportunities and enhance DP World’s presence in the global supply chain”.
He added: “Current year has started with trading in line with expectations and whilst the near-term outlook remains uncertain with the trade war and geopolitical headwinds, we expect our portfolio to remain resilient and see increased contributions from our recent acquisitions and investments.”