DP World, the world’s third-largest port operator, on Tuesday said its core earnings for 2011 would be “in line” with expectations, as container volumes rose 10 per cent over the prior year.
The company, one of the more profitable assets of Dubai World, said it handled 54.7 million twenty-foot equivalent container units (TEU) during the year across all its terminals, compared with 49.6 million TEUs in 2010.
However, volumes at DP World’s consolidated terminals dropped to 7 million in the fourth quarter, compared with 7.3 million TEU during the same period in 2010. Consolidated terminals handled 27.5 million TEUs in 2011, slightly down from 27.8 million TEUs handled in 2010.
“Whilst uncertainty continues to affect the global economy, our business is still performing well,” Mohammed Sharaf, the chief executive of DP World said in a statement.
He said the company will achieve 2011 full year earnings before interest, tax, depreciation and amortization (EBITDA) in line with expectations.
“We will achieve 2011 full year EBITDA in line with expectations. Lower than expected net financing charges will benefit reported profit before tax,” he said.
Fourth-quarter gross volumes were 14.1 million TEU compared with 12.9 million TEU during the same period in 2010.
The port operator sold 75 per cent of its Australian port operations for $1.5 billion in 2010 to private equity firm Citi Infrastructure Investors (CII).
DP World warned in October of tough conditions for its customers in 2012, but said it would achieve throughput growth of more than 7 per cent in the year.
The company sold its 34 per cent stake in UK-based Tilbury Container Services for $75.48 million earlier this week.