DP World Profits Drop Due to Red Sea Attacks

DUBAI, United Arab Emirates — DP World, the Dubai-based port operator, announced a nearly 60% drop in half-year profits, attributing the decline to ongoing disruptions caused by Yemen's Houthi rebels amid the Israel-Hamas conflict. The company reported profits of $265 million for the first half of the year, a stark decrease from $651 million during the same period last year. Sultan Ahmed bin Sulayem, chairman and CEO of DP World, acknowledged the adverse impact of the Red Sea crisis on the firm’s revenues, highlighting a challenging geopolitical environment and global supply chain disruptions. In his statement, Bin Sulayem noted that while the near-term trading outlook remains uncertain due to macroeconomic and geopolitical challenges, the company’s resilient financial performance in the first half positions it for stable adjusted profits for the full year. However, he did not provide specific details on how the Houthi attacks have directly affected DP World, which has distanced itself from the Nasdaq Dubai stock exchange in recent years. Since November, the Houthis have targeted shipping routes in the Red Sea, claiming their actions are aimed at vessels linked to Israel, the U.S., or the U.K. This has led to significant disruptions in the flow of approximately $1 trillion worth of goods annually through the region. Many shipping companies are now rerouting their vessels around the Cape of Good Hope to avoid the Red Sea, impacting operations at Dubai's Jebel Ali Port, the largest manmade harbor in the world. The ongoing conflict has not only affected DP World but has also intensified military engagements in the region, marking some of the most significant naval confrontations for the U.S. Navy since World War II. As the situation evolves, the long-term implications for global shipping and trade remain uncertain.