DP World, Abu Dhabi terminals not to renew contract
P World shares down 0.8 percent in early trade.
December 30, 2010 10:11 by Reuters
Port operator DP World’s contract to manage the Mina Zayed port for Abu Dhabi Terminals (ADT) will not be renewed after it expires on Dec. 31, the two companies said in a statement on Thursday.
Following the expiry of the five-year management contract, ADT will resume management of the terminal. DP World said the earnings before interest, tax, dividend and amortisation (EBITDA) contribution from the agreement was “not material” to the company.
ADT, which is a subsidiary of Abu Dhabi Port Company (ADPC), added that discussions surrounding operations for the new Khalifa Port in Abu Dhabi have not resulted in any binding agreement.
The new Khalifa Port is expected to open in the fourth- quarter of 2012.
Last week, DP World moved to cut its debt and focus on emerging markets by selling 75 percent of its Australian port operations for $1.5 billion to private equity firm Citi Infrastructure Investors (CII).
DP World — considered one of the more profitable units of debt-laden Dubai World — had first-half profit from continuing operations of $206 million, up 10 percent on a recovery in container volumes.
Shares of DP World were trading 0.8 percent lower at 0605 GMT on Nasdaq Dubai amid thin volumes.
(Reporting by Shaheen Pasha; Editing by Dinesh Nair)