Shipping Alliances Boost Revenues for DP World

DUBAI-based DP World saw revenue for the first half of 2017 rise by 9.6% year-on-year to $2.3bn as the effect of global shipping alliances increased cargo volumes amid gains in market share.

News ID: 75889

Date: 26 August 2017 - 10:05

According to MANA, DP World said that an improved trading environment in the period has led to stronger performance across the port operator’s three regions with net profit rising by 1.4% to $682m.

First-half gross throughput rose by 8.2% to 34.0m teu and consolidated throughput increased by 22.4% to 17.9m teu.

Cash generated from operating activities in the first half increased to $1bn from $905m in 2016 .

DP World said it continues to expect capital expenditure for the year to remain at $1.2bn with investments scheduled in Jebel Ali, London Gateway, Prince Rupert, and Berbera.

To date, it has spent $595m in investments including subsidiary P&O Maritime’s acquisition of Spanish Maritime Service operator Reyser.

DP World group chairman and chief executive Ahmed bin Sulayem, said: “Encouragingly, after a challenging period, we have seen a pick-up in global trade particularly in the second quarter of the year, and that combined with the ramp-up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNP Mumbai (India), has delivered ahead-of-market volume growth.

“Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained. Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations.”

In July, the group signed a technical assistance contract with the Indonesian government and port officials to help with the development of the greenfield port and logistics site of Kuala Tanjung and Belawan port in North Sumatra.

In May, DP World signed a memorandum of understanding with the India’s National Investment and Infrastructure Fund to ensure funding for its planned move to develop the country’s logistics sector.

The terminal operator is targeting investments of more than $1bn in the next few years for the development of port infrastructure for the Sagarmala project to jump-start port-led industrial growth in India, the creation of the Delhi-Mumbai industrial corridor, river transportation and cold storage, port-led special economic zones, free trade zones, inland container depots and cruise terminals