DP World has said it has continued to make progress on its strategy of connecting the supply chain despite the effects of the COVID-19 pandemic.
In its half-year results the terminal operator said its portfolio had delivered “a better than expected performance” in the first six months of 2020 but that the near-term remains uncertain.
It saw its revenue fall by 11.6% on a like-for-like basis and earnings before interest, taxes, depreciation and amortisation (EBITDA) by 4.8%.
Additionally, it also saw its volumes fall by 3.9% but this is significantly lower than the industry-wide decline of 10%.
“The COVID-19 outbreak has undoubtedly resulted in one of the most challenging periods in the history of our industry,” said DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem.
“Despite the challenges, we have continued to make progress on our strategy to deliver an integrated supply chain solution to cargo owners.
“We have focused our efforts on digitizing logistics and developed solutions for several verticals including the Automotive, Oil & Gas and FMCG industries.
“We are pleased to state that cargo owners have responded positively, and we are now delivering efficient solutions to our customers, which bodes well for the future.”
DP World’s efforts to connect the supply chain have included buying three major feedering companies to improve its regional and transshipment offering.
Earlier in 2020 it de-listed from the stock market to protect itself from further instability, as part of a long term plan.
“The strength and resilience that our business continually demonstrates throughout the cycles is due to the investment the Group has made over the years in response to changes in our industry,” Bin Sulayem continued.
“Our ability to adapt and change has been the key to our success, and we must continue to evolve for continued growth.
“We believe this long-term approach to business is not aligned with the short term thinking of equity markets and consequently the next stage of DP World’s development will take place as a private company.
“Looking ahead, our focus is on the safety of our employees, integration of our recent acquisitions to drive synergies, containing costs to protect profitability and managing growth capex to preserve cashflow.”
“Overall, we are encouraged that our business has performed better than expected given the Covid-19 pandemic and, while the outlook is still uncertain, we remain positive on the medium to long-term fundamentals of the industry.”
