DP World's Profits Plummet by 60% Amid Houthi Rebel Attacks and Geopolitical Strains

DP World, a Dubai-based port operator, reported a nearly 60% drop in half-year profits, attributing the decline to disruptions caused by Houthi rebel attacks linked to the Israel-Hamas conflict. Despite facing challenges, the company remains optimistic about delivering a stable full-year financial performance.

Dubai-based port operator DP World announced a significant 60% drop in half-year profits, citing disruptions caused by ongoing Houthi rebel attacks amid the Israel-Hamas war. The profit slump sees this year's earnings at USD 265 million, down from USD 651 million the previous year.

Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, highlighted the Red Sea disruptions as a key factor impacting revenues. "The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis," bin Sulayem stated.

Despite these challenges, DP World remains optimistic about achieving stable full-year adjusted profits. Many shippers are now rerouting around the Cape of Good Hope to avoid Red Sea turmoil, impacting operations at Dubai's Jebel Ali Port, home to DP World and the world's largest manmade harbor.

(With inputs from agencies.)