DP World Ltd, the world’s fourth- largest port operator, reported a better-than-expected first-half profit as the number of containers it handled grew seven per cent because of rebounding global trade.
Net income, including separately disclosed items, rose to $176.6 million from $175.3m a year ago, the Dubai government-controlled company said in a statement to Nasdaq Dubai on Wednesday. That beat the $157m median estimate of three analysts, according to data compiled by Bloomberg. Profit after tax from continuing operations jumped 10 per cent to $206m, the company said.
The result “is a reflection of returning container volumes” and cost management, Chief Executive Officer Mohammed Sharaf said in the statement. “Uncertainty remains over the sustainability of global trade volumes.” DP World expects second-half results to be stronger than the first due to a seasonal increase in trade, income from new terminals and better non-container revenue, he said.
DP World’s container volume declined eight per cent last year, leading to a slide in profit, as the global financial crisis cut demand for consumer goods. The company handled 25.6 million TEUs at the 28 consolidated terminals in 2009, it said in January. DP World in June postponed the listing of its shares on the London Stock Exchange as it awaited the completion of a link between the bourses in London and its home market Dubai.
The shares rose 0.8 per cent to close at 48 cents on Nasdaq Dubai on Tuesday. The stock gained 12 per cent this year.
DP World said in July that the number of containers it handled in the six months through June at the 50 ports it operates rose 16 per cent from a year ago to 23.7 million TEUs, or 20-foot-equivalent container units. Volume grew seven per cent to 13.2 million TEUs at the 28 terminals it consolidates for financial results, the company said in a statement then.
DP World is “comfortable” with analysts’ 2010 consensus of $1.2 billion in earnings before interest, taxes, depreciation and amortization for this year, Sharaf said on a conference call in July. The company, which operates ports from China to the UK, is “cautious” on whether the 16 per cent growth rate is sustainable, he said.
DP World’s growth in container shipping came primarily from terminals in Asia, Australia and from across European ports, the company said in July. Volumes grew 24 per cent in the Americas and Australia, 22 per cent in Asia-Pacific and the Indian subcontinent and eight per cent in Europe, Africa and the Middle East, the company said. DP World aims to start operations at new terminals in India and Pakistan this year, it said.
Dubai, the second-largest emirate in the United Arab Emirates, and some of the region’s state-run companies are facing difficulties in repaying debt as credit markets froze. Dubai World, the port operator’s parent company, in July gave creditor banks a plan to restructure $23.5bn of debt.
Net income, including separately disclosed items, rose to $176.6 million from $175.3m a year ago, the Dubai government-controlled company said in a statement to Nasdaq Dubai on Wednesday. That beat the $157m median estimate of three analysts, according to data compiled by Bloomberg. Profit after tax from continuing operations jumped 10 per cent to $206m, the company said.
The result “is a reflection of returning container volumes” and cost management, Chief Executive Officer Mohammed Sharaf said in the statement. “Uncertainty remains over the sustainability of global trade volumes.” DP World expects second-half results to be stronger than the first due to a seasonal increase in trade, income from new terminals and better non-container revenue, he said.
DP World’s container volume declined eight per cent last year, leading to a slide in profit, as the global financial crisis cut demand for consumer goods. The company handled 25.6 million TEUs at the 28 consolidated terminals in 2009, it said in January. DP World in June postponed the listing of its shares on the London Stock Exchange as it awaited the completion of a link between the bourses in London and its home market Dubai.
The shares rose 0.8 per cent to close at 48 cents on Nasdaq Dubai on Tuesday. The stock gained 12 per cent this year.
DP World said in July that the number of containers it handled in the six months through June at the 50 ports it operates rose 16 per cent from a year ago to 23.7 million TEUs, or 20-foot-equivalent container units. Volume grew seven per cent to 13.2 million TEUs at the 28 terminals it consolidates for financial results, the company said in a statement then.
DP World is “comfortable” with analysts’ 2010 consensus of $1.2 billion in earnings before interest, taxes, depreciation and amortization for this year, Sharaf said on a conference call in July. The company, which operates ports from China to the UK, is “cautious” on whether the 16 per cent growth rate is sustainable, he said.
DP World’s growth in container shipping came primarily from terminals in Asia, Australia and from across European ports, the company said in July. Volumes grew 24 per cent in the Americas and Australia, 22 per cent in Asia-Pacific and the Indian subcontinent and eight per cent in Europe, Africa and the Middle East, the company said. DP World aims to start operations at new terminals in India and Pakistan this year, it said.
Dubai, the second-largest emirate in the United Arab Emirates, and some of the region’s state-run companies are facing difficulties in repaying debt as credit markets froze. Dubai World, the port operator’s parent company, in July gave creditor banks a plan to restructure $23.5bn of debt.