DP World H1 profits down 32pc to $188m
Global container port operator DP World today said it posted a net profit after tax of $188 million during the first six months of the year from its portfolio of 49 marine terminals, a 32 per cent decline from $287 million in the corresponding period last year.
The consolidated throughput was 12.3 million TEUs compared to 13.6 million during the same period last year.
DP World recorded a revenue of $1.384 billion compared to $1.598 billion during the previous period.
"The first six months of 2009 have continued to present a very challenging operating environment across the portfolio. Despite the 10 per cent decline in container volumes, EBITDA margins have remained strong at 38.7 per cent, which is primarily as a result of solid results from emerging market terminals, improving terminal efficiencies and a strong focus on managing costs across our portfolio," said a statement.
During the period the company was awarded new concession agreements in Algeria, for ports in Algiers and Djen-Djen, which began operating in the second quarter. It also renewed two concessions in Australia in Adelaide and Sydney, for a further 30 years and 15 years respectively, and began operations at new development Doraleh, Djibouti.
"Our terminals in the UAE delivered a solid performance, working with our customers to handle larger container vessels and deliver a cost efficient platform from which customers are able to deliver cargo around the Gulf and Middle East and further afield into India and Africa," the statement said.
Chief executive officer Mohammed Sharaf commented: “Our business has responded well to the very challenging macroeconomic environment in the first half of this year which resulted in a 10 per cent decline in container volumes.
“These results show that our business model has the flexibility to adapt to changing market environments. All our terminals around the world have worked very hard to improve efficiencies for customers and remove costs from the terminals to ensure we continue to operate efficient and profitable terminals. The quick action of management has resulted in a more positive outcome than might otherwise have been.
“Our portfolio has benefitted from our focus on emerging markets and in particular the UAE has continued to deliver a solid performance as the gateway for trade to the Gulf and Middle East.
“Looking ahead, the unpredictable trends in global trade we have seen in the first half of the year continue into the second half of the year. Our terminals remain focused on improving efficiencies for our customers and cutting costs to minimise the impact of declining volumes on profitability. As we move through the second half, the incremental benefit of cost savings is expected to be offset by a weaker outlook for non container revenues.
“We are also ensuring that our portfolio emerges in a highly competitive position to benefit from the recovery in global trade. Reiterating what we said in July, at this stage we expect to deliver full year results in line with expectations.”
The board continues to explore options to improve the market valuation of our Company. The Board will use the next few months to review all options available.
The consolidated throughput was 12.3 million TEUs compared to 13.6 million during the same period last year.
DP World recorded a revenue of $1.384 billion compared to $1.598 billion during the previous period.
"The first six months of 2009 have continued to present a very challenging operating environment across the portfolio. Despite the 10 per cent decline in container volumes, EBITDA margins have remained strong at 38.7 per cent, which is primarily as a result of solid results from emerging market terminals, improving terminal efficiencies and a strong focus on managing costs across our portfolio," said a statement.
During the period the company was awarded new concession agreements in Algeria, for ports in Algiers and Djen-Djen, which began operating in the second quarter. It also renewed two concessions in Australia in Adelaide and Sydney, for a further 30 years and 15 years respectively, and began operations at new development Doraleh, Djibouti.
"Our terminals in the UAE delivered a solid performance, working with our customers to handle larger container vessels and deliver a cost efficient platform from which customers are able to deliver cargo around the Gulf and Middle East and further afield into India and Africa," the statement said.
Chief executive officer Mohammed Sharaf commented: “Our business has responded well to the very challenging macroeconomic environment in the first half of this year which resulted in a 10 per cent decline in container volumes.
“These results show that our business model has the flexibility to adapt to changing market environments. All our terminals around the world have worked very hard to improve efficiencies for customers and remove costs from the terminals to ensure we continue to operate efficient and profitable terminals. The quick action of management has resulted in a more positive outcome than might otherwise have been.
“Our portfolio has benefitted from our focus on emerging markets and in particular the UAE has continued to deliver a solid performance as the gateway for trade to the Gulf and Middle East.
“Looking ahead, the unpredictable trends in global trade we have seen in the first half of the year continue into the second half of the year. Our terminals remain focused on improving efficiencies for our customers and cutting costs to minimise the impact of declining volumes on profitability. As we move through the second half, the incremental benefit of cost savings is expected to be offset by a weaker outlook for non container revenues.
“We are also ensuring that our portfolio emerges in a highly competitive position to benefit from the recovery in global trade. Reiterating what we said in July, at this stage we expect to deliver full year results in line with expectations.”
The board continues to explore options to improve the market valuation of our Company. The Board will use the next few months to review all options available.
