Reuters/
A worker looks at a container ship docked at the DP World container berth at the Port of Brisbane in Brisbane, Australia. DP World, one of the more profitable units of debt-laden Dubai World, in December had sold 75% of its Australian port operations for $1.5bn
DP World, the world’s third-largest port operator, gave no clues on any new asset sale plans as it reported a rise in container shipping volumes for last year fuelled by growth in
DP World, one of the more profitable units of debt-laden Dubai World, in December had sold 75% of its Australian port operations for $1.5bn.
This was aimed at cutting debt and focusing on emerging markets.
Asked in a conference call yesterday if he expected any other sales this year, chief executive Mohammed Sharaf declined to comment.
Earlier this week, a senior executive said DP World was under no pressure from the
The company said it handled 49.6mn twenty-foot equivalent container units (TEU) in 2010, up 14%.
Fourth-quarter volumes rose 9%, part of a record second-half performance.
“This excellent performance in the second half of the year will lead to a stronger financial performance and we expect to report full year financial results in line with expectations and well ahead of the prior year,” Sharaf said.
Sharaf also said there was no change to DP World’s plans to list in London in the second quarter.
The company said volume growth was fuelled by strong performance in Australia, America and Asia Pacific regions as well as the continuing return of volumes to the European region.
DP World added new terminals in China and Peru which became operational last year.
Sharaf said he agreed with analysts that the there would be 7% growth in the industry in 2012.
The chief financial officer Yuvraj Narayan said the company did not need any further equity and would have $3.8bn in cash after closing the Australia deal.
“We don’t look at the Australia deal as a sale,” Sharaf said in the conference call. “We have brought in a strategic partner, who will be bringing more value to the business. We will be monetising some of the assets we have... investing it in other parts of the world.”
DP World will study increasing capacity at its Jebel Ali port in Dubai as it monitors sustained, moderate regional growth in trade and shipping, the company’s chief commercial officer said.
“We will be studying and continue studying internally what is the right time” for a capacity increase, DP World chief commercial officer Dirk Van Den Bosch said at a Meed conference in Abu Dhabi.
“We expect the region to continue to grow at a moderate percentage,” Van Den Bosch said.
Jebel Ali port was in 2008 the world’s sixth largest container port, with capacity for 14mn twenty-foot equivalent container units, or TEUs, according to a DP World January 2010 investor presentation. It is the largest container port between Rotterdam and Singapore.
“In the coming years, I think the capacity we have here is sufficient to cover growth in the region, but we have to follow things very closely because, as we know, when things pick up here in the region, they pick up very quickly,” Van Den Bosch added.
He also said while DP World, majority owned by government-owned conglomerate Dubai World, expected to see sustained growth for its Jebel Ali operation, growth would not be in the double digits.