DP World profit nearly halves but sees upturn

Port operator DP World, a unit of state-owned conglomerate Dubai World, saw a 46 per cent drop in 2009 profit but said it saw signs of recovery for 2010.


The company's results come as its parent said it would present plans to restructure its $26 billion debt to creditors this week, with details emerging on Wednesday.


DP World said net profit from continuing operations stood at $333 million for the period ended December 31 from $621 million in 2008.


Revenue fell to $2.8 billion on a decline in container volumes, which fell 8 per cent, and pricing pressure. It had revenues of $3.28 billion in 2008.


"We are seeing positive signs of recovery," the company said in a statement. "However, it is still too early in 2010 to confirm sustainability as the macro-economic environment and global trade patterns remain unpredictable."


DP World, which could list on the London bourse as soon as the second quarter of this year, is one of the largest port operators in the world and owned by Dubai government-linked conglomerate Dubai World.


The ports operator is not included in Dubai World's debt restructuring plans.


DP World said on Wednesday it had no major refinancing needs until a $3 billion revolving credit facility comes due in October 2012.


The company also said its London listing will be via depository interests, in pounds sterling. Shareholders will be asked to approve an amendment at DP World's April 26 annual meeting to allow the listing.


DP World declared an 0.82 cent dividend, up 19 per cent over 2008.

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