DP World First-Half Profit Rises as It Aims to Outperform Market
DP World Ltd., the world’s third-largest ports operator, posted a 9.1 percent increase in first-half profit, beating analysts’ estimates, as it focused on fast-growing markets and monetized assets in Hong Kong.
Net income rose to $264 million, or 31.8 cents a share, from $242 million, or 29.1 cents, the Dubai-based company said in a statement to Nasdaq Dubai (DPW) today. The mean estimate of three analysts was for net income of $229.6 million, according to data compiled by Bloomberg. Revenue dropped 1.3 percent to $1.51 billion compared to $1.53 billion a year ago.
DP World, which operates more than 65 terminals across six continents, said in March it made $249 million from asset sales in Australia, Europe and the Middle East. It invested $544 million this year across its portfolio and expects to have capacity of about 85 million twenty-foot equivalent units globally in 2015.
“We have a strong balance sheet which provides us with the flexibility to support growth in our existing business, and expand capacity in line with market demand,” Chief Executive Mohammed Sharaf said in the statement. “Moreover, we have the financial resources to add to our portfolio should favorable assets at attractive prices become available.”
The industry outlook remains “uncertain” and market conditions in some regions are “undoubtedly challenging,” he said, adding that he remained “confident” of meeting full-year targets.
“We believe we are well positioned to continue to outperform the market in the medium term,” he said.
DP World’s capital expenditure guidance of $3.7 billion from 2012 to 2014 remains unchanged, he said.
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