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DP World Sees 2011 Ebitda In line With Expectations As Vols Jump

Wednesday, Feb 01, 2012

(This story was originally published Tuesday.)

--Full year throughput rises 10% in 2011 as UAE region outperforms

--Sees FY ebitda in line with forecasts on lower than expected financing costs

--Focus on emerging markets should help mitigate an uncertain global economy in 2012

By Tim Falconer

Of ZAWYA DOW JONES

DUBAI (Zawya Dow Jones)--Dubai-based ports operator DP World (DPW.NDB) is confident of meeting expectations for full year earnings before interest, tax, depreciation and amortization as it reported a 10% rise in the amount of cargo it handled in 2011, while its focus on fast growing emerging markets should help the government-controlled firm ride out an uncertain global economy in 2012.

DP World said it processed 54.7 million twenty-foot equivalent container units, or TEUs, in 2011, a 10% rise on the year earlier. Its portfolio of consolidated terminals handled 27.5 million TEU in 2011, while like-for-like consolidated volume growth in the same period was 8%.

"Our flagship terminal in the UAE has yet again exceeded all expectations delivering another record year as it continues to position itself as the gateway port of choice to handle cargo destined for the Middle East, India and Africa regions," DP World 's Chief Executive Mohammed Sharaf said.

"Whilst this uncertainty remains as we enter 2012, we continue to concentrate on delivering an improved operational and financial performance over 2011 reflecting our focus on both faster growing emerging markets," he added.

Sharaf said the ports operator remains confident of meeting full year ebitda expectations, helped in part by lower than expected financing charges.

In October, the company's chief financial officer Yuvraj Narayan said consensus analyst expectations for full year ebitda were between $1.2 billion and $1.3 billion. The firm reported ebitda of $1.24 billion in 2010.

DP World 's "cash position is comfortable, we are well positioned to keep within our defined parameters of debt to fund existing plans," Narayan told reporters on a conference call Tuesday.

The firm, which made its long-awaited debut on the London Stock Exchange in June last year, has a $3 billion syndicated loan facility due in October, a company spokesperson said in November. It also has two bonds due in 2017 and 2037 worth $1.5 billion and $1.75 billion respectively, according to JP Morgan.

DP World , which operates more than 60 terminals worldwide, has invested heavily in expanding its operations in recent years, adding new capacities in fast-growing emerging markets in Asia and Latin America. It is also spending a total $1.6 billion on the London gateway deep-sea port and logistics park that will enable container vessels to call in close proximity to the British capital from the last quarter of 2013.

Looking ahead, Sharaf said the company will maintain its focus on emerging markets even as global economic uncertainty remains.

"In 2012, according to Drewry, growth will be slower than 2011 but we hope to do better..We have seen strong growth in the last quarter of 2011," he said.

Drewry Shipping Consultants, an independent maritime consultancy, currently expects the container industry to grow about 5.5% in 2012. It had estimated growth at 6.8% for 2011.

DP World shares last traded Tuesday down 2% at $10.75.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com

(Nikhil Lohade in Dubai contributed to this story.)

Copyright (c) 2011 Dow Jones & Co.

(END) Dow Jones Newswires

01-02-12 0404GMT