ALBAWABA – Dubai Port operator DP World, said on Thursday that its half-year earnings dropped by about 60%, attributing this decline to the Red Sea disruptions brought by Houthis in Yemen in response to the ongoing Israeli aggression on Gaza.
Since November, the Houthis have targeted ships passing through the Red Sea passage with ties to Israel in response to what has been called a “genocide” against the Gazan population, causing disruptions to $1 trillion worth of products that pass through the area every year, according to Alarabiya, while also leading to the most severe warfare the US Navy has seen since World War II.
Ships have begun maneuvering round the Cape of Good Hope in Southern Africa in order to completely circumvent the Red Sea. Shipping using Dubai's Jebel Ali Port, the biggest artificial port in the world and home to DP World, has been impacted by the rerouting.
The Red Sea crisis led to shipping interruptions that resulted in a 59% decrease in H1 2024 net profit, attributable after separately stated adjustments, to $265 million for Dubai-based global port operator DP World (DPW), down from $651 million reported in the same period last year.
Revenues for the first half of the year, however, increased by 3.3% to $9.3 billion, profits before interest and taxes decreased by 6.8% to $1.5 billion.
DP World chairman and CEO Sultan Ahmed bin Sulayem said in a statement published by Dubai media that “The year 2024 has been marked by a deteriorating geopolitical environment and disruptions to global supply chains due to the Red Sea crisis.”
“Nevertheless, our strategic emphasis on high-margin cargo, comprehensive end-to-end supply chain solutions, and stringent cost management have been crucial in achieving this financial performance,” the CEO added.
