Text size:

  • Small
  • Normal
  • Large
Emirates Airline was named in the top 10 first class cabins by therichest.com. Find out what position it came here.

DP World on course to defy global headwinds

DP World container volumes rose 10 per cent in the third quarter, helping the ports operator remain on course to hit profits expectations this year.

DP World container volumes rose 10 per cent in the third quarter, helping the ports operator to remain on course to hit profits expectations this year despite an uncertain global maritime outlook.

The UAE, the Asia-Pacific region, Africa and the Americas were the biggest drivers of the growth, DP World said yesterday.

Volumes from newly acquired operations in Suriname, Callao in Peru and Qingdao in China also helped to boost output.

"Whilst uncertainty continues to affect the global economy our business continues to perform well," said Mohammed Sharaf, the chief executive of DP World.

"Despite the tougher fourth-quarter comparatives, we continue to believe that we will achieve full-year Ebitda [earnings before interest, taxes, depreciation, and amortisation] in line with expectations."

Gross volumes reached 14.4 million TEUs (twenty foot equivalent units) during the quarter, compared with 13.1 million TEUs a year ago.

Gross volumes for the first nine months of the year were 40.6 million TEUs, 11 per cent up from the same period last year.

Removing the performance of volumes from new terminals in Callao and Qingdao, like for like gross volumes still rose 9 per cent.

The results helped to lift DP World's stock by 0.94 per cent to close at US$10.7 on Nasdaq Dubai.

DP World is managing to buck a downtrend in the shipping industry caused by a souring of the global economy and the fall-out from the European sovereign debt crisis. The World Trade Organization last month dropped its annual growth projection for merchandise trade in volume to 5.8 per cent from the 6.5 per cent it predicted in April.

But the world's third-largest ports operator has remained focused on increasing its capacity by more than a third by 2020. It aims to reach its goal through acquisitions and increased infrastructure at existing ports, especially in faster-growing emerging markets.

Among the best-performing markets in the third quarter were the Asia-Pacific region and the Indian subcontinent, where gross volumes rose from 5.8 million TEUs in the third quarter of last year to 6.5 million TEUs in the same period this year. Europe, Africa and the Middle East grew from 5.7 million in the third quarter of last year to 6.2 million.

The Americas and Australia expanded from 1.6 million to 1.7 million.

"The UAE region has continued to do well with the third quarter delivering excellent growth as Dubai continues to strengthen its position as a global trading hub for the fast-growing economies of the Middle East, India and Africa," said Sultan Ahmed bin Sulayem, the chairman of DP World.

A gain from the sale of its Australian unit helped DP World to post a better-than-expected rise in first-half profit.

Net profits quadrupled to $705.3 million (Dh2.59 billion) from $176.6m a year earlier, it said in August.

One of Dubai World's more profitable units, DP World had more than $4bn on its balance sheet as of June 30.

Its cash cushion helped it to secure a 20-year financing arrangement with a group of global banks to fund its UK London Gateway development.

The company is ploughing $1.6bn into the new port and logistics park in Thurrock, Essex, with a fourth-quarter 2013 completion date slated.

 

tarnold@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 Three generations of the Hakimi family tend to their stall Crawford Market in Mumbai. Subhash Sharma for The National

In pictures: Shopper’s delight at Crawford Market in Mumbai

Crawford Market is an old British-style covered market dealing in just about every kind of fresh food and domestic animal imaginable. Later on renamed Mahatma Jotirao Phule, the market remains popular among locals and visitors by its old name, taken from Arthur Crawford who was the first municipal commissioner of the city.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National