DP World profits slide in 2009

Dubai port operator’s profits plunge to $333 million in 2009 compared with $621 million posted in 2008.

• DUBAI – Dubai’s port operator DP World announced on Wednesday a 46.3-percent slide in 2009 profits compared with the previous year, saying however that the earnings were better than expected.
• Net profits plunged to 333 million dollars last year compared with 621 million dollars posted the year before despite declining business in 2008, a company statement said.
• Revenues also dropped, from 3.28 billion dollars in 2008 to 2.82 billion dollars last year.
• The results reflect “management action and the continued investment in new terminals despite the challenging macroeconomic environment and the decline in global trade experienced in 2009,” the company said.
• DP World, one of the largest marine ports operators in the world, is a subsidiary of debt-ridden Dubai World which is negotiating with creditors a plan to restructure 22 billion dollars of debt.
• “2009 has been a challenging year for all economies and across all industries … Tough decisions were taken,” chairman Sultan Ahmed bin Sulayem said.
• DP World operates 49 terminals in 31 countries, including Dubai’s Jebel Ali port, the largest container port in the Middle East.
• “Our 2009 results are an excellent achievement for DP World given the significant reduction in global trade and the uncertainty surrounding the operating environment,” CEO Mohammed Sharaf said.
• Both Sulayem and Sharaf predicted better performance in 2010 and 2011.
• “We are seeing positive signs of recovery,” Sharaf said. “However, it is still too early in 2010 to confirm sustainability, as the macroeconomic environment and global trade patterns remain unpredictable.”
• In 2009, DP World handled more than 43.4 million TEU (twenty-foot equivalent) container units across its portfolio from the Americas to Asia.
• With expansion and development projects in key growth markets, including India, China and the Middle East, capacity is expected to rise to around 95 million TEU over the next 10 years, DP World said.
• Last year, the port operator opened two new developments, at Doraleh in Djibouti and Ho Chi Minh City (formerly Saigon) in Vietnam, and also completed the expansion of its flagship terminal in Jebel Ali, Sulayem said.
• The company was awarded new 30 year concession agreements in Algeria, for ports in Algiers and Djen-Djen, which it began operating in the second quarter, he said.
• DP World successfully renewed two more concessions in Adelaide and Sydney, Australia, for a further 30 years and 15 years respectively.