DP World 2016 profits up 6.2pc to high of US$1.12 billion


DP WORLD's global portfolio of marine terminals net profit increased 6.2 per cent in 2016 to a record US$1.12 billion, drawn on revenues of $4.16 billion, up 1.3 per cent.

The full year contribution of Jebel Ali Free Zone in UAE and Canada's Fairview Terminal in Prince Rupert, British Columbia, also supported the revenue growth, reported Bahrain's TradeArabia.

The Dubai-based global port operator reported volume growth of 0.4 per cent, with total containerised revenue up three per cent year on year.

The group raised $1.2 billion in a new seven-year sukuk transaction at significantly improved terms, refinancing $1.1 billion of the existing 2017 sukuk (Muslim bond approved under Sharia Law) through a tender offer and extending the debt maturity profile.

By the end of 2016, its total capacity worldwide stood at 85 million TEU, an increase of 15 million TEU since 2012. The group expects 100 million TEU of gross capacity by 2020, subject to market demand.

"We expect capital expenditure in 2017 to be $1.2 billion with investment planned into Jebel Ali, Prince Rupert, Berbera (Somaliland), Dakar (Senegal) and London Gateway," the company said.

Said CEO Sultan Ahmed Bin Sulayem: "Our volumes have continued to grow ahead of the market with gross volumes growing 3.2 per cent versus Drewry full year market estimate of 1.3 per cent. This is pleasing given the significant challenges parts of our portfolio have faced, and once again demonstrates the resilient nature of our diversified portfolio.

"Disciplined investment throughout the economic cycle has been one of the keys to delivering consistent growth, and in 2016 we invested $1.29 million across our portfolio in markets with strong demand and supply dynamics," he said.

"We have made an encouraging start to the year and we expect to continue to deliver ahead-of-market volume growth. Our aim is to continue our disciplined approach to capital allocation in markets with strong growth potential while adding complementary or related services to further diversify and strengthen our business," he said.

Source: Schednet

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