DP World reports flat profit growth in H1
By: Daniel Shane
Dubai-based port operator DP World reported a marginal net profit increase of 0.4 per cent to US$247m in 1H2012.
In the first six months of the year, the world’s largest port operator saw its revenue increase to US$1.53bn, compared to US$1.50bn in the year ago period.
Net debt at the firm, a unit of Dubai World, stood at US$3.5bn. Gross debt was US$4.7bn, down from US$7.8bn, mainly due to the repayment of a US$3bn loan facility during the first half of the year. The company plans to make investments of US$3.7bn over the next two years.
DP World attributed flat growth in both profit and revenue to uncertainty in the global economic climate.
“The global economic uncertainty seen in the first half of the year has continued into the second half,” said CEO Mohammed Sharaf.
Revenue derived from DP World's operations in Europe, Middle East and Africa during the half was up 14 per cent to US$1.03bn, although Asia-Pacific was down 6 per cent US$233m and Australia and Americas receded 23 percent US$266m.
Earlier in the year DP World was forced to sell its 60 per cent stake in Adelaide port, while a report earlier in August said the port authority in the Yemeni city of Aden had begun the process of cancelling its contract with the Dubai operator to manage the terminal.