DP World says to meet full-year expectations despite flat first-half results

Profit attributable to shareholders as of June was at $606 million, DP World said. (Courtesy DP World)

DUBAI: DP World, the world’s fourth largest terminal operator, on Thursday said it was well-placed in meeting full-year expectations despite reporting flat financial results for the first half.
Profit attributable to shareholders as of June was at $606 million (SR2.27 billion) versus $608 million during the same period last year, the Nasdaq Dubai-listed company said in a disclosure.
First-half revenues were up 9.6 percent higher to $2.29 billion from $2.09 billion as June 2016. DP World also spent $595 million for capital expenditures across portfolio during the first half of the year, and has maintained its $1.2 billion budget for investments planned for the Jebel Ali, London Gateway, Prince Rupert and Berbera ports.
“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,” Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, said in a statement.
““Our balance sheet remains strong and we continue to generate high levels of cash-flow, which gives us the ability to invest in the future growth of our current portfolio, and the flexibility to make new investments should the right opportunities arise as well as delivering enhanced returns to shareholders over the medium term.”
Last June, DP World subsidiary P&O Maritime acquired Spanish maritime services company Reyser as part of its “broader strategy to grow complementary sectors in the global supply chain.”
Reyser, which engages in harbor towage, mooring, bunkering, diving and environmental support, has long-term agreements in 10 ports in Spain and contracts with international liquefied natural gas terminals in Canada and in Trinidad and Tobago.
“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,” bin Sulayem said.