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DP World business up 10%

By Issac John DUBAI - DP World , world's third-largest marine terminal operator, said on Tuesday that core earnings for 2011 would be in line with analysts expectations as business at its ports across the world jumped 10 per cent last year.

The port operator, which is listed on Nasdaq and London Stock Exchange, reported lifting the equivalent of 54.7 million standard 20-foot shipping containers across its portfolio last year -- up 10 per cent from 49.6 million handled in 2010.

DP World 's vibrant growth, defying grim global prospects for the container handling business, reflected the strong growth in trade to and from the emerging markets where the Dubai-based operator is focused.

The ports operator also predicted that 2012 would prove a still better year in its operations than 2011.

"We expect to perform better than we did in 2011," Yuvraj Narayan, finance director, said on Tuesday at a conference call.

In 2010, DP World 's net profit rose 35 per cent to $450 million compared with a profit of $333 million in 2009, reflecting a return to volume growth across almost all its terminals.

Mohammed Sharaf, chief executive officer of DP World , said that despite the outlook for the world economy remained uncertain, he was optimistic about DP World 's prospects. "We continue to remain confident about the long-term outlook for our industry," he said at the conference call.

DP World 's broad geographic footprint gives it a window on trade flows around the world. The company manages more than 60 sea cargo terminals on six continents, including the Middle East's busiest in Dubai.

DP World 's portfolio of consolidated terminals handled 27.5 million TEUs during 2011.

"Had our five terminals in Australia not been deconsolidated from 12 March 2011, the consolidated terminals would have delivered nine per cent growth ahead of the prior year. The port operator said growth was driven by an exceptionally strong performance in the UAE region, which delivered volume growth of 12 per cent handling 13.0 million TEU for the year. The UAE region has gone from strength to strength during 2011 with each quarter delivering yet another record performance culminating in 16 per cent volume growth in the final quarter of 2011.

Alongside this excellent performance in the UAE region, strong results from Asia Pacific, Africa and the Americas region together with the addition of new capacity from its terminals in Karachi, Pakistan, and Vallarpadam, India, both of which opened in early 2011, helped to drive growth.

Sultan Ahmed bin Sulayem, chairman of the company, said thee results are a reflection of DP World 's continued focus on those regions which are seeing strong trade growth in addition to the continued focus by all its terminals on providing customers with a first class service.

In June, 2011, DP World became the first Dubai company to obtain a premium listing on the London Stock Exchange to offer more investors an opportunity to invest in the company. The port operator sold 75 per cent of its Australian port operations for $1.5 billion in 2010 to private equity firm Citi Infrastructure Investors.

Last week, DP World sold all 34 per cent of its shares in Tilbury Container Services in the United Kingdom to a subsidiary of Otter Ports Holdings, owner of Forth Ports Limited for a total consideration for the shares of $75.48 million.

© Khaleej Times 2012