DP World H1 net profit up 10 pct on volume recovery
H1 net profit up to $206 million.
August 18, 2010 10:53 by Reuters
Dubai government-controlled port operator DP World said first-half net profit rose 10 percent on a recovery in container volumes, and second-half results should also be better, driven by seasonal trade flows.
Net profit after tax from continuing operations rose to $206 million, DP World said on Wednesday, beating forecasts for $148-$158 million in a Reuters poll.
Chief executive Mohammed Sharaf said contribution from new terminals, in addition to ongoing improvement in non-container revenues and continued cost management, also boosted profit in the first half.
“Uncertainty lingers over the sustainability of global trade volumes in the second half,” Sharaf said. “We are on track to meet full-year results in line with our expectations.”
First-half revenue was up 5 percent to $1.46 billion, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8 percent to $580 million.
“The return of container volume growth across our portfolio in the first half of the year and our success in maintaining container revenue per TEU slightly ahead of the prior period has allowed DP World to deliver revenue growth of 5 percent despite a small decline in non-container revenues,” said the company, which is aiming for a London listing of its shares.
DP World said it was focused on managing costs “very tightly” in the period, reducing them by 5 percent, while EBITDA margins recovered to almost 40 percent.
First-half container volumes climbed 7 percent, on a consolidated basis, to 13.2 million TEU, or “twenty-foot equivalent container units”. On a like-for-like basis, they rose 10 percent, DP World said in July.
DP World, not included in parent company Dubai World’s debt restructuring plan, is one of the largest port operators in the world and is 77 percent owned by the state-linked conglomerate.
(By Tamara Walid, Reporting by Tamara Walid; Editing by Dinesh Nair and Dan Lalor)