Dubai: DP World has not ruled out trying to re-enter the US market if the deal is right, the company’s chief executive said on Tuesday.
The Dubai-based ports operator, which reported throughput growth of 11 per cent year-on-year for the first six months of 2011, abandoned plans to acquire operations at several North American ports in 2006.
“When it is the right market at the right time, we will be there,” he said.
DP World fell 1.05 per cent to $12.20 on Nasdaq Dubai yesterday following the announcement of its second quarter and half year throughput figures. The company’s stock was priced at 790 pence on the LSE at 4.30pm UAE time. DP World’s share price has plunged 10 per cent since listing on the London Stock Exchange (LSE) on June 1.
The company said yesterday its gross consolidated volumes for the first half of the year climbed to 26.2 million TEU (twenty foot equivalent units) driven by strong growth in the Asia-Pacific, UAE, Africa and Americas regions as well as new volumes from recently opened capacity in Peru and China.
DP World’s consolidated terminals handled 13.5 million TEU in the first six months of the year. The UAE region reported its strongest ever quarter, handling 6.1 million TEU in the first six months of the year including a record 3.1 million TEU during April, May and June.
“As we go into the second half of the year, there is some uncertainty around the global economy making it difficult to forecast how global trade will develop,” said Sharaf.
“Whist this uncertainty is not, as yet, reflected across our portfolio, and with our focus on the more resilient emerging markets we still expect to deliver full yea results in line with expectations,” he added.
DP World says it is continuing to invest in new capacity at its developments in Vallarpadam, India and Karachi, Pakistan, which both opened in the first quarter. The world’s third-largest port operator sold 75 per cent of its Australian port operations for $1.5 billion last year.
“DP world’s first half throughput was in-line with our estimates,” said Kareem Murad, a logistics and transformation analyst at Shuaa Capital.
“Consolidated volumes reached 13.5 million TEU; a humble growth of 2.3 per cent from 13.2 million TEU [in the same period last year], “However, bear in mind that DP World’s Australian ports are no longer consolidated from the second quarter after their sale of 75 per cent of their stake.
“[There are] no surprises in the numbers reported with consolidated throughput across all regions coming in 1.5 per cent below our estimate of 13.7 million TEUs. For now, we reiterate our “buy” recommendation with a fair value of $16 per share,” he added.
