Bloomberg News

DP World Sees 2011 Gross Profit in Line With Expectations

October 25, 2011

(Updates with volume details in fourth paragraph.)

Oct. 25 (Bloomberg) -- DP World Ltd., the Dubai World-owned ports operator, said it expects full-year gross profit to be in line with expectations after a 10 percent rise in container volume during the third quarter.

The company handled 14.4 million twenty-foot equivalent units in the third quarter, compared with 13.1 million TEUs a year ago, it said in a statement to Nasdaq Dubai today. Gross volumes during the first nine months of the year rose 11 percent to 40.6 million TEUs.

The growth in volume “continues to reflect our focus on the faster growing emerging markets, resulting in another performance well ahead of the industry,” Chief Executive Officer Mohammed Sharaf said in the statement. “Despite the tougher fourth-quarter comparatives, we continue to believe that we will achieve full-year EBITDA in line with expectations.”

DP World’s portfolio of consolidated terminals handled 20.5 million TEUs during the first nine months of the year, while like-for-like volume growth for that period was 8 percent. Most of that growth came from the company’s operations in the United Arab Emirates, Africa and Americas regions, it said.

DP World shares rose 0.5 percent, their first gain since Oct. 18, to $10.65 at 11:25 a.m. in Dubai. The stock is down 15 percent so far this year.

London Gateway

The company, the world’s fourth-largest port operator, in August posted a better-than-expected jump in first-half profit as volume increased and the company booked a gain from selling its Australian unit. Net income quadrupled to $705.3 million from $176.6 million a year earlier.

DP World agreed a 20-year financing with a group of international banks to fund its London Gateway deep-sea port, it said on Oct. 6. DP World, which said it will invest an additional $1 billion in the project over the next three years, will use an equal mix of debt and equity to finance it and plans to draw down on the debt by mid-2012 after completing equity investments, it said.

The company said on Oct. 4 that the port, on the Thames river about 25 miles (40 kilometers) east of London and adjacent to a logistics park, will begin operating by the fourth quarter of 2013 and will have capacity for 1.6 million 20-foot containers.

--Editor: Inal Ersan

To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net; Stefania Bianchi in Dubai at sbianchi10@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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