DP World reports doubling in profits

Terminal operator Dubai Ports World said profit after tax from continuing operations for the six-month period ending June 30 more than doubled to $287 million from $129 million in the same 2007 period.

Revenue was up 32 percent to $1.6 million on a 21 percent growth in consolidated container traffic to 13.6 million TEUs.

The Dubai-based company noted in the first half it expanded to include two new terminals at Dakar, Senegal and Sokhna, Egypt. It also said it had recently acquired a terminal Tarragona, Spain and was awarded concessions for Aden and Ma'alla, Yemen.

We also increased our shareholding in two of our most important terminals in the Indian Subcontinent, in Chennai, India and Karachi, Pakistan, and we were delighted to successfully extend our concession in Brisbane, Australia, for a further 40 years, the company said.

The rollout of new capacity from our pipeline of 13 new developments is progressing on schedule, and construction at Callao, Peru and London Gateway U.K. began in the second quarter. Our shipping customers have expressed considerable interest in capacity at London Gateway. Reflecting the capacity shortage in the region, we expect the terminal to be full soon after commencing operations towards the end of 2010.

DP World Chief Executive Mohammed Sharaf said, These results are particularly pleasing in light of the fact that the industry overall has seen a slow down in volume growth in the Asia Pacific region, and we are operating in a more challenging global financial and economic.

He added, In the last few months the industry has reported early indications of weakening growth in some markets, but thus far into the second half, our business has continued to perform ahead of the market and report growth over the comparable period last year. We expect this trend of outperforming the industry to continue through 2008, and anticipate delivering full year results in line with expectations.

Source: American Shipper