DP World posts 35% rise in net profits, prepares IPO

DP World's 2010 net income rose an impressive 35% to $450m from $333m a year earlier as the company prepares to submit a formal application for a listing of its shares on the London Stock Exchange.


Throughput at terminals in which DP World holds a stake rose to 27.8m TEU from 25.6m TEU in 2009. Throughput at the company's flagship Jebel Ali port rose to 11.6m TEU in 2010, 4% ahead of 2009.


DP World's total consolidated capacity at the end of 2010 stood at 35m TEU, of which 23% has been added in the last three years. It operates 49 terminals and has 9 new developments and major expansions across 31 countries.


Shareholders will be asked to approve amendments to the DP World Limited’s articles of association at the annual general meeting on 11 May 2011 to facilitate issuance of the depositary interests on the LSE.


"Our 2010 results, with profit before tax in excess of $500m, reflect a return of container volume growth and greater revenue generation, together with the benefits derived from our cost cutting measures and improved terminal efficiencies implemented since the downturn," said Mohammed Sharaf, DP World's CEO.


“Our container operations have continued to generate excellent performance, with container revenues ahead of levels last seen in 2008. Despite the slower growth from non-container revenues, cost controls and improved terminal efficiencies have driven a 16% growth in EBITDA to $1,240m and EBITDA margins back above 40%," he said.


Mr Sharaf was quoted as saying he believed that recent unrest in the Arab world would lead to increased trade as higher government spending brought the improvements to infrastructure and social services that populations seek.
(Source:http://www.seatrade-asia.com)