DP World enjoys profit increase

Monday, 23 August 2010

Rising volumes and “effective cost management” helped DP World boost its revenue and profits in the first six months of 2010, writes Mike King.

Volumes handled by the international port operator reached 13.2 million teu in the first half, up 7% on a year earlier.

Group revenue climbed 5% year-on-year to US$1.45 billion while net profit after tax jumped 10% to $206 million.

The Dubai-based firm said its regional and terminal management teams had managed to reduce costs by 5% in the six-month period.

CEO Mohammed Sharaf said the company’s strong performance reflected the improving container market and “DP World’s commitment to driving through efficiencies at its facilities”.

He added:“Ebitda margin improvement to almost 40% and in excess of $580 million is very satisfactory after the challenging environment of the last 18 months, particularly as container storage revenue and non-container revenue is still below last year’s levels.

“Uncertainty remains over the sustainability of global trade volumes. However, we expect the second half to deliver stronger results than the first, as our terminals benefit from seasonal trade flows and the contribution from new terminals.”