DP World volumes up 6% in half-year results

DP World volumes up 6% in half-year results

UAE-based operator DP World handled 35.6m teu in the first half of 2018, translating to 6% year-on-year growth on a gross, like-for-like basis.

All three regions in DP World’s portfolio – Asia Pacific and Indian Subcontinent; Europe, Middle East and Africa (EMEA); Americas and Australia – recorded growth, although the company’s growth did decelerate in the second quarter of the year due to tough comparables. In the second quarter of 2017, growth stood at 10.7% as a result of new shipping alliances.

Sultan Ahmed bin Sulayem, DP World group chairman and CEO, said: “The robust performance across all regions continues to be an affirmation of our strategy to deploy relevant capacity in key markets and operate a diversified portfolio. We are pleased to see our terminals in Europe and Australia continue to deliver growth and still expect to see increased contributions from our new investments in the second half of the year.”

The like-for-like growth figure does not include volumes from facilities in Berbera (Somaliland), Limassol (Cyprus), Doraleh (Djibouti), Saigon (Vietnam) and Paita (Peru) where DP World has not handled containers for at least a small part of the year. With these reported volumes included throughput growth totalled 4.8%.

At a consolidated level, which includes throughput from all terminals where the group has control per international financial reporting standards (IFRS), DP World handled 18.6m teu, which equates to 4.5% growth on a like-for-like basis and 4% growth on a reported basis.

In terms of gross like-for-like growth, in the Asia Pacific and Indian Subcontinent region volumes were up 4.8% across the first six months of 2018 and grew by 3.6% in the second quarter. In the EMEA region, half-year results were up 5% and second quarter volumes were up 0.7% . In the Americas and Australia, half-year growth stood at 5.2% while second quarter growth stood at 4.4%.

The Asia Pacific and Indian Subcontinent region remains the largest in terms of gross, like-for-like throughput, and recorded volumes of 16.24m teu in the half-year results. The EMEA region handled 15m teu across the same six months, while throughput in the Americas and Australia totalled 4.4m teu.

Volumes in the UAE, home to DP World’s flagship Jebel Ali facility, grew by 0.2% to 7.74m teu in the half-year and were up 2.3% in the second quarter.

Bin Sulayem said: “Whilst geopolitical headwinds and recent changes in trade policies continue to pose uncertainty to the container market, first half volume performance demonstrates that our portfolio is well positioned to deliver growth.

“We continue to focus on delivering operational excellence and disciplined investment to remain the port operator of choice as well as strengthening our product offering to play a wider role in the global supply chain as a trade enabler.”