Dubai: Ports operator DP World made a net profit of $450 million (Dh1.6 billion) in 2010, the company said yesterday.
DP World, a unit of the state-backed conglomerate Dubai World, said the 35 per cent jump in profits from $333 million in 2009 was due to increased trading volumes and improved terminal efficiencies.
Revenues for the year grew nine per cent to $3.1 billion, up from $2.8 billion in 2009. Consolidated throughput was up nine per cent to 27.8 million TEU (twenty-foot equivalent units).
Mohammad Sharaf, CEO of DP World, said: "Our 2010 results, with profit before tax in excess of $500 million, reflect a return of container volume growth and greater revenue generation, together with the benefits derived from our cost cutting measures and improved terminal efficiencies implemented since the downturn."
Sharaf also said he expected DP World to make further progress in 2011 with the company already witnessing a 12 per cent volume growth across its portfolio in the first two months of this year.
"Despite the slower growth from non-container revenues, cost controls and improved terminal efficiencies have driven a 16 per cent growth in EBITDA (earnings before interest, taxes, depreciation and amortisation) to $1.2 billion and EBITDA margins back above 40 per cent," Sharaf added.
DP World, which sold a 75 per cent stake in its Australian ports for $1.5 billion last December, said the results put it on track to list on the London Stock Exchange.
"We have submitted the 2010 results to the exchange. It now depends on the process in London. We are hoping to do it as soon as possible," Sharaf said.
DP World shares climbed 0.3 per cent to a five-week high following the results announcement before dipping to close at 0.59 cents.
Dubai World, DP World's parent company, yesterday announced it had signed a final agreement with creditors to restructure $23.8 billion of debt.
"DP World's revenues and EBITDA were broadly in-line with our estimates (-1.5 per cent and +2.4 per cent). The bottom-line reached $373.7 million (+26.5 per cent year-on-year), 15.9 per cent above our estimate of $322.4 million," said Kareem Murad, a transport and logistics analyst at Dubai-based investment bank Shuaa Capital.
He added: "One of the main reasons behind the [company's] better than expected net profit is a higher income from joint ventures and associates, which reached $140.2 million (13.1 per cent higher than our estimate), and other items, including net interest expense.
The company also announced a dividend for 2010 of 0.86 cents, which implies a dividend yield of 1.4 per cent," Murad added.
New executive
DP World has appointed Deepak Parekh to its board as non-executive director, the company said. Parekh, the Non-Executive Chairman of HDFC Ltd, an Indian housing finance institution, is the fourth independent director on the board. Parekh is on the board of several leading corporations; Non-Executive Chairman of Infrastructure Development Finance Company (IDFC), GlaxoSmithkline, Siemens India Ltd, Lafarge India and Wireless Network Services.
