World's third-largest port operator has warned of tough conditions in coming year
DP World, the world's third-largest port operator, on
Tuesday said its core earnings for 2011 would be "in line" with
expectations, as container volumes rose 10 percent over the prior year.
The company, one of the more profitable assets of debt-laden
Dubai World, said it handled 54.7 million twenty-foot equivalent container
units (TEU) during the year across all its terminals, compared with 49.6
million TEUs in 2010.
However, volumes at DP World's consolidated terminals
dropped to 7 million in the fourth quarter, compared with 7.3 million TEU
during the same period in 2010. Consolidated terminals handled 27.5 million
TEUs in 2011, slightly down from 27.8 million TEUs handled in 2010.
"Whilst uncertainty continues to affect the global
economy, our business is still performing well," Mohammed Sharaf, the
chief executive of DP World said in a statement.
He said the company will achieve 2011 full year earnings
before interest, tax, depreciation and amortization (EBITDA) in line with
"We will achieve 2011 full year EBITDA in line with
expectations. Lower than expected net financing charges will benefit reported
profit before tax," he said.
Fourth-quarter gross volumes were 14.1 million TEU compared
with 12.9 million TEU during the same period in 2010.
The port operator sold 75 percent of its Australian port
operations for $1.5bn in 2010 to private equity firm Citi Infrastructure
DP World warned in October of tough conditions for its
customers in 2012, but said it would achieve throughput growth of more than 7
percent in the year.
The company sold its 34 percent stake in U.K-based Tilbury
Container Services for $75.48 million earlier this week.