Dubai Ports’ profits plummeted 59% in the first half of this year amid shipping disruptions caused by the current crisis in the Red Sea, as the repercussions of Israel’s war on the Gaza Strip, ongoing since October 7, 2023, continue to increase.
Company Profit Attacks by the Yemeni Houthi group using missiles and drones in the Red Sea have forced many shipping companies to reroute vessels away from the Suez Canal, sailing around the Cape of Good Hope at the southern tip of Africa.
The Houthi attacks are a development in the consequences of Israel’s war on Gaza, as they target ships heading there.
Dubai Ports, based in Dubai, said in a regulatory disclosure that profit attributable to the company’s owners reached $265 million in the six months to June 30, down from $651 million a year earlier.
The company’s revenue increased 3.3% to $9.34 billion, driven by the performance of its logistics, ports, and terminals divisions.
Red Sea Attacks Dubai Ports said that attacks on shipping in the Red Sea and the rerouting of ships are factors severely disrupting supply chains, noting that its operations in the Middle East, Africa, and Europe were “partially affected.”
It reported capital expenditures of $994 million in the first half of this year, divided into $593 million for ports and container terminals, $278 million for logistics services, complexes, and economic zones, $122 million for maritime services, and $1 million for headquarters operations.
The company added that disruptions caused by the crisis affected adjusted core earnings, which fell 4.3% to $2.497 billion, but said it expects better performance in the second half of the year.
