Dubai: DP World, one of the world's largest port operators, said Wednesday that year-end pre-tax profits will be hit after an 8 per cent decline in 2009 volumes, but will be in line with market expectations.
It added that last year's throughput at 28 of its terminals fell 8 per cent to 25.6 million twenty-foot equivalent containers (TEUs) in 2009 from 2008 numbers as global trade faced a downturn.
Excluding the contribution from new terminals, which joined the portfolio during 2009, volumes declined by 10 per cent. Across all 50 operational terminals in 2009, it handled 43.4 million TEUs, a decline of 6 per cent from 2008.
In a statement, chief executive Mohammad Sharaf said: "We have delivered somewhat better results than the industry due to our focus on emerging markets, which have remained more resilient to the global downturn."
In the last 12 months, DP World opened new terminals in Djibouti and Vietnam.
In a teleconference, Sharaf told reporters that 2010 would see added capacity from port expansion in Kochi, India and Peru where it already has guaranteed business from older ports.
It will also be opening Port Qasim in Karachi, Pakistan this year. Sharaf declined to say what the added capacity would be.
"We have enough cash for expansion going forward…As of now, we have a very strong balance sheet," Sharaf said, adding that liquidity will be a problem in the long term. He said that company will explore additional financing means if the need arises.
Cost-cutting measures have helped DP World mitigate the fall in revenues. "Overall, we met the expectations in cost reductions and we will continue doing that in 2010."
Sharaf declined to comment whether there would be any more job cuts, but said that 2009 was the worst year.
"We remain confident about the long-term outlook for the container terminal industry and our strong competitive position within it," Sharaf said.
