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DP World increases profits after acquisition of logistics firm
DP World Jebel Ali

DP World increases profits after acquisition of logistics firm

Terminal operator DP World has announced a 22.3% increase in pre-tax profit in the first half of the year compared to the same period in 2014.

Five months after the acquisition of logistics infrastructure firm Economic Zone World, the Dubai-based company announced in its interim results that its profit before tax went up from US$432m in the first half of 2014 to US$529m in the six months up to 30 June, 2015.

DP World’s consolidated throughput rose by 3.5% to 14.4m teu for the first six months of 2015 from 13.9m teu in the same period last year.

The operator’s revenue increased by 14.5% from US$1.7bn in the first half of 2014 to US$1.9bn in the same period this year.

DP World’s chairman Sultan Ahmed Bin Sulayem said that the company’s earnings growth of 22% year on year was “aided by the acquisition of EZW,” which was concluded in March this year.

The operator announced in its interim results that the acquisition of Maher Terminal’s Fairview Container Terminal in Prince Rupert, Canada from the German Deutsche Bank was concluded on 18 August 2015.

Sulayem added: “In 2015, we have invested over $3.5 billion in acquisitions and expansionary capex, and this investment leaves us well placed to capitalise on the significant medium to long-term growth potential of this industry.”

DP World’s strongest performance in revenue in the first half year of 2015 came in the Middle East, Europe and Africa region, with an 18.9% growth in revenue to US$1,375m as to 30 June, 2015, compared to US$1,157m for the same period in 2014.

As regards the Australia and Americas region, the company announced a 3.4% increase in revenue from US$312m in the first six months of 2014 to US$322m in the first half of 2015.

Revenue in the Asia Pacific and Indian Subcontinent region went up by 6.3% to US$202m in the first half of 2015 from US$190m in the same period last year.

The port operator recently announced plans for additional capacity at its flagship port Jebel Ali in Dubai, which, the company said in its interim results on Thursday (27 August), are expected to add 2m teu in capacity.

DP World’s CEO, Mohammed Sharaf, said: “Our capex programme remains on track and we have added over 3m teu of new capacity in the first half of 2015 with our projects in Rotterdam (Netherlands) and Nhava Sheva (India) now operational.”

“Yarimca (Turkey) and the second phase of Terminal 3 Jebel Ali (UAE) are on track for the second half of 2015. We believe this additional capacity will contribute to growth in the coming years and deliver enhanced returns to shareholders over the medium term.”

Sulayem added: “We remain on course to deliver over 100 million TEU of capacity by 2020, while maintaining the existing shape of our portfolio.”