DP World Doubles First Half Post-Tax Profits

by Lorys Charalambous, Tax-News.com, Cyprus

03 September 2008

Global port operator DP World announced on Monday that it has made a post-tax profit of USD287m in the first six months of 2008 - almost double what it made in the same period of 2007.

In a statement released on its website this week, the company announced that the first half of the year saw the acquisition of two new terminals at Dakar in Senegal and Sokhna in Egypt and Tarragona in Spain. The company also the increased its shareholding in two of the most important terminals in the Indian Subcontinent - Chennai in India and Karachi in Pakistan.

DP World Chairman Sultan Ahmed Bin Sulayem commented:

“DP World has performed extremely well in the first half of this year. Building on its outstanding performance in 2007, the company recorded a profit after tax for continuing operations of USD287mn; more than double that of the same period last year and particularly pleasing given the more challenging operating environment in the first half of this year.

"DP World remains committed to expanding its already strong presence in the faster growing emerging economies together with the more mature economies where capacity is constrained. Its particular focus on the East-West trade routes via the Suez Canal and on origin and destination cargo positions it perfectly to capture the long term growth potential evident in these regions. Despite the current uncertainty surrounding short term global growth, we will continue to invest for the longer term.

“We continue to be focused on our customers, growing our portfolio of terminals and capacity in line with their future needs. In doing so, we aim to be the port developer and operator of choice, both in emerging and developed markets."

DP World Chief Executive Mohammed Sharaf concluded:

“These results reflect our unique position as a terminal operator in faster growing economies and capacity constrained markets and our vital position at the very heart of the global supply chain. Our focus on improving terminal efficiency and quality services for our customers will continue to drive traffic through our ports. Strong operating leverage will enhance returns whilst our flexible cost base provides us with the ability to adapt quickly to changing market conditions.

“The business has performed very well in the first half of 2008 despite a deteriorating global financial and economic background and these uncertainties remain. In the last few months the industry has reported early indications of weakening growth in some markets, but thus far into the second half, our business has continued to perform ahead of the market and report growth over the comparable period last year. We expect this trend of outperforming the industry to continue through 2008, and anticipate delivering full year results in line with expectations.”

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