Dubai-Based Port Operator DP World’s Half-Year Profits Fall 60%

Dubai-based port operator DP World has reported that its half-year profits fell by nearly 60%, partly due to ongoing attacks by Yemen’s Houthi rebels over the Israel-Hamas war, which have affected shipping through the Red Sea, Jon Gambrell reported for the Associated Press (AP).

DP World reported profits of $265 million this year, down from $651 million during the same period last year. I Photo: Expo 2020 Dubai

DP World reported profits of $265 million this year, down from $651 million during the same period last year. DP World Group’s chairman and CEO, Sultan Ahmed bin Sulayem, acknowledged that the Red Sea disruptions had impacted the firm’s revenues.

“The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis,” he said in a statement included in the results.

“While the near-term trading outlook remains uncertain due to macroeconomic and geopolitical headwinds, the resilient financial performance of the first half positions us well to deliver stable full-year adjusted profits.”

Bin Sulayem did not elaborate on the specific effects of the Houthi attacks on DP World, a government-owned shipper that in recent years removed itself from the Nasdaq Dubai stock exchange.

Since November, the Houthis have been targeting shipping through the Red Sea corridor over the Israel-Hamas war in the Gaza Strip.

The assaults have disrupted the $1 trillion worth of goods that flow annually through the region, while also sparking the most intense combat the US Navy has seen since World War II.