DP World's terminal volumes drop slightly
Dubai port operator DP World , which recently disposed of stakes in some non-core assets, reported a slight decline in its consolidated terminal volumes for the third quarter, Reuters reports.
The world's third-largest port operator said on Tuesday that terminals in which it owns majority stakes recorded a 0.7 percent year-on-year fall to 6.94 million TEU (twenty-foot equivalent units) in the third quarter.
This was because the Asia-Pacific and Indian subcontinent region and the Europe, Middle East and Africa region reported lower volumes.
DP World, one of the more profitable assets of conglomerate Dubai World, also posted a 1.0 percent drop to 14.2 million TEU in gross volumes, which include all terminals in which it owns a stake.
The drop reflected the recent divestment of three joint venture terminals and a decline in volumes in the Europe, Middle East and Africa region, the firm said in a statement.
Excluding the effect of the divestments, gross container volumes rose 0.5 percent in the third quarter.
The company had reported flat profits for the first half of this year as growth in its Gulf operations offset tough global trading conditions.
DP World, which operates more than 60 terminals across six continents, has in the last several months sold stakes in Russian container terminal Vostochnaya Stevedoring Co, British-based Tilbury Container Services and operations in Belgium. It has also quit its venture in Yemen.
"These recent divestments allow us to recycle cash into projects already within our pipeline, such as Jebel Ali (United Arab Emirates) and London Gateway (United Kingdom) and, over time, to invest in new opportunities in line with our strategy, while maintaining balance sheet strength and flexibility," chairman Sultan Ahmed Bin Sulayem said in the statement.
Shares of DP World have climbed 20 percent this year on Nasdaq Dubai. The company is also listed on the London Stock exchange.
