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29 March 2024

DP World not selling more assets

Published
By Staff/Reuters

Port operator Dubai Ports (DP) World does not plan to sell more assets, its Chairman Sultan bin Sulayem said.

He said in an exclusive interview with Al Khaleej that DP World has embarked on development and expansions of 11 ports in nine countries across four continents.

He said these projects are Embraport in Brazil, Sokhna Port in Egypt, Eurofos terminal in France, Nhava Sheva in India, Rotterdam in the Netherlands, Dakar in Senegal, and Yarimca in Turkey.

In addition to the “London Gateway” project in the United Kingdom, capacity expansion is also underway on Station 2 in Jebel Ali and the development of Terminal 3. He said these projects will be operational over the next few years.

Dubai-owned port operator DP World's 2012 profit rose 21 per cent, bolstered by a $249 million gain from sale of non-core assets and growth in emerging market operations.

The world's third-largest port operator clocked $555 million in profit attributable to shareholders for 2012, compared with $459 million in 2011, it said in a statement on the Nasdaq Dubai bourse on Wednesday. Revenue for the period rose 5 per cent to $3.12 billion from $2.98 billion in the prior year, the company said.

The port operator, one of the most profitable units of Dubai World, has been selling assets globally, exiting markets where it does not have a significant presence and seeking to redeploy funds in fast-growing markets.

"We have continued to actively manage our portfolio to maximum advantage, divesting non-core or low return assets, and repaying debt," Sultan Ahmed Bin Sulayem said in the statement.

"This has enabled us to move capital into those markets where we see more profitable returns whilst significantly reducing our leverage and strengthening our capital base."

DP World sold stakes in two container terminals and a logistics centre in Hong Kong for $742 million earlier this month.

The Hong Kong sale was one of the largest assets sold since it offloaded its Australian business more than two years ago. It realised $249 million profit from asset disposals in 2012, which aided profit growth.

The company, which operates more than 60 terminals across six continents, invested $685 million across its portfolio in 2012. Some of its key developments, including its London Gateway project, is on schedule to open later this year, the company said.

“By the end of this year we will begin work on Station 2 of Jebel Ali which will add a million TEUs to the capacity.”

He pointed out that work on Station 3 will complete next year with a capacity of up to four million TEUs.

He added that the two projects will increase the capacity of the port of Jebel Ali to 19 million TEUs by 2014.

He said DP world is able to deal with any changes in the global economic climate.

He said Dubai Ports World focuses on emerging markets where growth continues at rates higher than developed markets and with a strong focus on management costs and enhanced operational efficiency.

He told Al Khaleej that the port operator has no plans to tap the debt market in the near future.

Dividend for the year was set at 24 cents per share, unchanged from the prior year.

Shares of DP World have climbed 19.7 per cent this year on Nasdaq Dubai. The company is also listed on the London Stock Exchange.