Dubai: DP World on Wednesday moved to reduce its assets in Australia and said it would increase its focus in emerging markets that provide higher margins.
Chairman Sultan Ahmad Bin Sulayem said on Wednesday that the company would focus on ports in South Asia, Africa and South America.
In a deal worth A$1.5 billion (Dh5.5 billion), DP World offloaded a 75 per cent stake in five marine terminals under DP World Australia, that included payment from the sister company to the group.
The company's total valuation came in at A$1.817 billion.
Officials said that near-term debt was taken off, but the extra cash from the 75 per cent stake sale in DP World Australia would be used to lower its "net debt" and also for new investments.
Bin Sulayem said the Australian deal was sought out by the buyers and the company did not need to sell its assets.
Its renewed focus on emerging markets would not mean that it would result in a greater withdrawal from markets that provided lower margins.
"Our focus is in the emerging markets. But we won't systematically be going around and reducing assets in mature markets," he said. "We will look for opportunities." With a pipeline of expansion and development projects in key growth markets, including India, China and the Middle East, the company's capacity is expected to rise to around 95 million TEUs in the course of the next 10 years, in line with market demand.
After spending millions on port operations in Chile, DP World is eyeing the government ports expansion planned and has joined the bidding process.
"We will always look for opportunities around the world and where our customers will benefit. We are still in early discussions for Chile," company chief executive Mohammad Sharaf said on Wednesday.
In emerging markets of Asia Pacific and Indian Subcontinent, the company saw a consolidated throughput of 5.5 million TEUs, showing the strongest regional performance during last year, mostly resisting the global trade downturn.
Meanwhile, Europe, Middle East and Africa saw EBIDTA margins fall by two per cent with throughput of 16.5 million TEUs.
During the first half of this year, the company spent $411 million in projects such as Callao, Peru with new terminals opening up in Vallarpadam, India and Karachi, Pakistan.
The company is also expected strong performance from its recently launched port operations in Ho Chi Minh City, Vietnam.