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International port operator DP World said on Monday it will continue to implement necessary measures to contain costs this year as the outlook for the container industry remains uncertain amid the resurgent COVID-19 pandemic.
“Looking ahead, while 2021 has started encouragingly, the outlook remains uncertain given the continued issues surrounding the pandemic, geopolitical uncertainty in some parts of the world and the ongoing trade war,” said Sultan Ahmed Bin Sulayem, group chairman and chief executive officer of DP World.
“We remain focused on containing costs to protect profitability, managing growth capex to preserve cashflow and are confident of meeting our 2022 targets,” he added.
The Dubai state-owned firm, which operates in more than 50 countries, reported a flat growth for its business for the full year 2020, with container volumes handled hitting 19.1 million TEUs (twenty-foot equivalent units).
However, overall volumes went up by 7.6 percent year-on-year and 6.5 percent like-for-like in the fourth quarter of 2020, thanks to markets like India, Europe, Middle East, Africa and the Americas.
Strong end to the year
According to Sulaiman, they still had a strong end to the year and that their company continued to outperform the market in 2020.
“We are delighted to report another set of positive volume figures for [the fourth quarter of 2020]… This strong end to the year resulted in flat growth in 2020 which compares favourably against an industry that is estimated to be down 2.1 percent,” Sulaiman said.
“Overall, this once again illustrates the resilience of the global container industry, and DP World’s continued ability to outperform the market. The growth in volumes was encouragingly across all our regions with India being a key driver, while our flagship port of Jebel Ali saw volumes stabilising,” he added.
Solid performance
In the Americas, volume growth for the last quarter was driven by the company’s port terminals in Santos, Brazil and Vancouver, Canada. In Jebel Ali, the port operator recorded a 0.3 percent year-on-year increase in container volumes to 3.4 million TEUs during the fourth quarter.
“Overall, the full-year solid volume performance leaves as well placed to deliver a relatively stable financial performance in 2020,” said Sulaiman.
Looking forward, the CEO said they will continue to invest selectively in projects that can deliver “compelling value” such as locations like Dakar, Senegal and Luanda, Angola.
The coronavirus outbreak sent shockwaves through the container industry last year due to the changes in consumption habits and disruptions in supply chains, particularly during the global lockdown.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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