The acquisition of free zone Economic Zones World (EZW) helped DP World’s profit, attributable to the company’s owners, leap by 30.7% to US$883m in 2015.
Despite limited container volume growth of 2.7%, the terminal operator’s increase in capacity at Rotterdam, London Gateway, EZW and Yarmica saw its revenue climb 16.3%
On like-for-like terms at constant currency excluding the addition of new capacity, revenue was only up 5.6%, profit attributable to DP World’s owners up 6.2% and throughput 1.7% higher.
DP World executive chairman and CEO, Sultan Ahmed Bin Sulayem, said the profit growth was “driven by the acquisition of EZW and robust underlying growth”.
On a conference call with investors, he put to rest speculation about an initial public offering (IPO) for the firm’s new Indian holding company, stating: “We have no plans for [an IPO]. We already are a registered company anyway. That doesn’t give us any benefit.”
The consolidation of six existing container terminal concessions in India into Hindustan Ports Pvt. Ltd. (HPPL) would enable DP World’s Indian business to be “more efficient”, he said, claiming it was currently a “nightmare” for accountants.
Investment by the Dubai-based company totally US$5.4bn in 2015 comprising US$4bn in acquisitions and US$1.4bn in capital expenditure.
“We remain on course to deliver over 100m teu of capacity by 2020, while maintaining the existing shape of our portfolio that has a 70% exposure to origin and destination cargo and 75% exposure to faster growing markets,” added Sulayem.
He stated that the terminal operator would continue to look out for acquisitions, citing “origin and destination cargo” as one of the key criteria.
Sulayem also spoke about his trip to Iran, stating he was looking to utilise Iran’s rail network to help connect China and Europe. “We are confident now that they have the capacity to receive the cargo at Anzali and other ports,” he added.