Bruce Barnard | Aug 25, 2011 8:50AM EDT
DP World boosted first half after-tax profit by 36 percent from a year ago to $281 million, as the global port operator benefited from higher container traffic and its focus on faster growing emerging markets.
The Dubai-based group’s profit was $6 million shy of a record in 2008. Including a large gain on the sale of a majority of its Australian business, the DP World’s net profit more than tripled to $741 million from $219 million in the first half of 2010.
Revenue rose by 3 percent to $1.5 billion within the same period, reflecting the deconsolidation of its Australian terminals. Traffic in the first half grew 11 percent year-over-year to 26.2 million 20-foot equivalent units.
CEO Mohammed Sharaf said DP World’s terminals have become more profitable following initiatives introduced after the 2009 downturn.
“Our global portfolio…is now more robust and better positioned to deliver profitable growth,” Sharaf said.
He warned that the outlook for the traditionally stronger second half is uncertain because of concerns over the development of world trade.
“The impact of this uncertainty has not, as yet, been reflected in the markets in which we operate and, with our focus on the more resilient emerging markets, we still expect to deliver full year results in line with expectations,” Sharaf said.
DP World made a profit of $436 million on the $1.5 billion sale of 75 percent of its Australian operation to Citi Infrastructure Investors in late 2010.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.
