Port operator DP World sees 2020 profits drop 29% amid virus

Port operator DP World sees 2020 profits drop 29% amid virus

Dubai-based port operator DP World announced Thursday its profits slid 29% in 2020 from the previous year to $846 million, as the coronavirus pandemic froze supply chains and upended the world’s trade flows.

The port operator, which delisted from the stock exchange and returned to full state-ownership last June, stressed that it defied analysts’ low expectations for global trade over the difficult period. The maritime firm, one of the world’s largest, has faced various challenges with the virus surging, regional tensions rising and trade wars continuing.

In its annual report, DP World said its revenue in 2020 climbed 11% to $8.53 million, a rise it attributed to a year of acquisitions. DP World reported revenues of $7.68 billion and profits of $1.19 billion in 2019. The port operator’s delisting from the stock exchange came as its parent company, Dubai World, sought to repay more than $5 billion to banks.

Despite dismal predictions of slumping global trade last spring, DP World said the container terminal industry has shown resilience, pivoting to automation and digital investment. In recent months, the company has done brisk business. DP World struck a $4.5 billion deal with one of Canada’s biggest pension-fund managers to expand its footprint in Europe and Asia Pacific last fall. It won several lucrative concessions this year to build vast ports and logistics hubs in Indonesia, Senegal and Angola.