Dubai-based ports operator, DP World, said Thursday its full year net profit for 2011 went up 82 per cent to $ 683 million compared to $ 375 million in 2010, backed by the sale of its Australian operations.
Profit before separately disclosed items rested at $ 459 million, marking a 23 per cent increase over the previous year owing to the improvement in global container volumes and a focus on faster growing emerging markets, DP World said in a statement.
Adjusted earnings before interest, tax, depreciation amortization (EBIDTA), meanwhile, went up 19 per cent 1.3 billion against 2010. Revenue for 2011 was down three per cent to $2.98 billion.
“This improvement in profitability is a reflection of our strategy, which sees us focus on the faster growing emerging markets and more profitable origin and destination and gateway cargo,” Sultan Ahmed bin Sulayem, DP World Chairman, said in a statement.
The third largest port operator in the world further stated that its gross cash flow from Australian operations increased to $1.16 billion, while net debt has been reduced to $3.6 billion.
DP World in 2010 sold 75 per cent of its Australian operations to private equity firm Citi Infrastructure Investors (CII) in an effort to reduce its debts.
“2011 has been another good year for DP World with the second half of the year delivering a better performance than the first half. This improved performance was achieved despite a deteriorating global economic backdrop in the second half,” Mohammed Sharaf, DP World Group Chief Executive, said in a statement.
Looking ahead, he said that though the global macroeconomic uncertainty has continued into 2012, the company remains confident about the long term outlook for the industry.
“With our portfolio focused on the faster growing emerging markets and more stable O&D markets, we continue to see growth across our portfolio in the first two months of the year, with an 11 per cent improvement in gross volume growth. We remain committed to delivering improved operational and financial performance over 2011,” said Sharaf.
Further, the company said it is recommending a dividend distribution of $0.24 a share. “The board is confident of the company’s ability to continue to generate cash and support our future growth whilst maintaining a stable dividend payout,” said bin Sulayem.
DP World will also be investing in an additional 1 million TEU of new capacity its Dubai’s Jebel Ali port this year as well as in a new 4 million TEU container terminal which will be operational in 2014, it said in the statement, adding that the London Gateway project in the UK will be operational in the final quarter of 2013.
“We have benefited from the improvement in global container volumes whilst retaining a very clear focus on generating additional revenue, driving productivity and upholding a disciplined approach to cost management,” said Sharaf.
