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In the first half of 2014 figures announced towards the end of August, DP World recorded a profit of US$ 332 million, 41% up on the same period in 2013. Like-for-like revenue was up by almost 12%, reflecting a strong performance across its global portfolio of container terminals for the six months to 30 June this year.
The company continues to invest in infrastructure projects that will underpin further growth in revenues and profitability. Around US$ 350 million was invested across the DP World ports network in the first half of the year, with the highlight being a 2 million teu expansion project at Jebel Ali that is due to come on line in the fourth quarter of 2014. A new container terminal at Yarimca in Turkey is also under development and is expected to be operational in 2015, while additional facilities are also due to open next year in Rotterdam and Nhava Sheva.
The company has this year already opened up additional capacity at Embraport, Brazil, and London Gateway, in the UK. Overall the company plans to boost throughput capacity globally by approximately 8 million teu over the next two years.
According to DP World Chairman, Sultan Ahmed Bin Sulayem, “The addition of new capacity and a pick-up in global trade has resulted in a return to robust volume growth, which has translated into an impressive financial performance. Our portfolio is well positioned to capitalize on the significant medium to long-term growth potential of this industry and we continue to seek new opportunities in the faster growing markets.”
DP World’s UAE business delivered a solid performance over the first half of 2014, with containerized cargo revenue growing by 13.1% and non-container revenue by 9.5%, as the economy in the UAE and wider region remained robust. Growth continues to be driven primarily by tourism and logistics, while the benefits of the Expo 2020 are still to come, DP World points out. Jebel Ai is currently operating at over 90% utilisation despite the recent addition of 1 million teu of additional capacity.
In terms of throughput, terminals in which DP World has control handled 13.9 million teu in the first half of 2014, up from 12.8 million teu in the first six months of 2013, a rise of 12.8%. Volumes moving through terminals in the Middle East, Europe and Africa were up 12%, at 10.25 million teu, while Asia Pacific and Indian Subcontinent throughput was down 2.4% at 2.4 million teu. Facilities in Australia and the Americas handled 1.23 million teu, a rise of 3.7%.
Mohammed Sharaf, group chief executive officer, says, “Overall we believe our business is well positioned to capitalise on the significant medium to long-term growth potential of this industry due to our focus on the faster growing emerging markets and stable origin and destination cargo. We remain focused on delivering relevant new capacity in the right markets, improving efficiencies, containing costs and handling higher margin contains to drive profitability.” The near term outlook remains encouraging, he says, while accepting that continued geopolitical issues may result in challenges as the year progresses.
