DP World reports 52% growth

Ports giant DP World, on Monday reported a profit of $420 million for 2007, up 52 per cent on the previous year as it emerged unscathed from US economic slowdown and the dollar’s decline.

The Dubai-headquartered company that completed an initial public offering in November, announced its revenues from 42 terminals in 22 countries last year increased 32 per cent to $2.7 billion and that expansion would continue through 2008 after a strong start to the year that was well ahead of 2007.

DP World has concentrated on handling direct cargo rather than far less profitable transhipment freight.

“This is an excellent set of results driven by DP World’s well-positioned portfolio which benefits from the strong Asia to European trade routes and the growth of container cargo in the faster growing economies of the emerging markets,” DP World chairman Sultan Ahmad Bin Sulayem told reporters. “This is a trend we expect to continue.”

DP World operates 43 terminals around the world, including the flagship Jebel Ali facility in Dubai, now ranked 7th in the world, while it is developing the brand new London Gateway terminal in the Thames estuary east of London.

However, it does not have a presence in the US after being forced to sell the port concessions acquired through the takeover of P&O, under pressure from political protests in Washington.

Eventually, the Dubai company still wants to expand into the US, chief financial officer Mr Narayan confirmed in a telephone interview with Lloyd’s List.

“At the right time …. it’s a place where we would like to be, but there’s no hurry,” he said.

DP World has climbed into the elite group of top four global port operators through a series of acquisitions including the purchase of P&O, the UK-based ports operator.

Last year also saw the ports operator enter new markets in Africa – Senegal and Egypt.

Growth was achieved not just through new facilities, but also DP World’s ability to attract more ship calls to existing ports. The company also said that 70% of its terminals are located in faster-growing emerging markets.

The board is recommending a larger-than-expected dividend of 1.33 cents per ordinary share.