DP World predicts higher volumes for 2017 after first half growth

The Dubai-based terminal operator handled 7.7 percent more volume in the first half of 2017 compared to the same period last year, suggesting the company will reach its full-year expectation, according to CEO Sultan Ahmed Bin Sulayem.    Dubai-based port terminal operator DP World handled 33.9 million TEUs during the first half of 2017, an increase of 7.7 percent compared to gross throughput during the same period last year, according to recent data from the company.
   On a reported basis, profit attributable to owners of the company, before separately disclosed items, stood at $606 million, while earnings per share totalled $0.73 for the first half of 2017. Revenue grew 9.6 percent, due to strong volumes across all three DP World regions, and adjusted EBITDA increased by 4.2 percent,  the company said in its latest earnings report.
   Market conditions in the Middle East, Europe and Africa improved with the commencement of THE Alliance services, said DP World. Specifically, volumes in the United Arab Emirate were up by 4.3 percent.
   Asia Pacific and Indian Subcontinent market conditions were “generally positive,” with the consolidation of Busan in South Korea increasing volume growth 97.5 percent. Market conditions in the Americas and Australia grew by 15.2 percent, the company said.
   “DP World is pleased to announce a solid set of first half results with attributable earnings of $606 million, and like-for-like earnings growth of 15.8 percent. Adjusted EBITDA reached $1,225 million as margins were maintained at above 50 percent,” said DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem.
   “Encouragingly, after a challenging period, we have seen a pick-up in global trade particularly in the second quarter of the year, and that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNP Mumbai (India), has delivered ahead-of-market volume growth,” he added. “In the first half of 2017, we have invested $595 million of capex in key growth markets, and announced over $170 million of acquisitions in our maritime business, which offers significant growth opportunities. These investments leave us well placed to deliver on our strategy to strengthen our port related services and capitalize on the significant medium to long-term growth potential of this industry.
   “Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained. Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations,” said Bin Sulayem.