Port operator DP World said on Thursday business had accelerated in the second half of 2008, as emerging market trade mitigated a global economic downturn, after profit in the first half more than doubled.
Still, the shipping industry has reported early indications of weakening growth in some markets, the world's fourth-largest container port operator said.
"Thus far into the second half, our business has continued to perform ahead of the market and report growth over the comparable period last year," the Dubai-based company said on its website.
DP World said first-half profit from continuing operations after tax rose to $287 million, up 122 per cent from the year earlier. That exceeds a forecast for a headline net profit figure of $277 million, according to a Reuters poll.
"We expect this trend of outperforming the industry to continue through 2008 and anticipate delivering full year results in line with expectations," DP World said.
Analysts said the results could buoy shares, which have slumped 34 per cent so far this year on concerns for a global economic downturn. "Strong numbers throughout," said Deutsche Bank in a note to clients
But the DP World's outlook -- bullish for itself but mixed for the industry as a whole -- may induce some investor caution, one analyst said.
"They're not changing their full-year outlook even though they've beaten expectations in the first half," said the analyst, who declined to be named. "It (the earnings outlook) is a bit hedged."
PRICED RICH
Analysts say DP World shares are still highly priced compared with its rivals after long period of unbroken growth as rising global trade forced a breakneck expansion both for DP World and the ports and shipping sector.
But stockholders have little real-world experience with a downturn in the sector, leading to uncertainty and steep declines in share prices.
With a 2009 estimated price/earnings ratio of around 27, DP World shares come at a premium to rivals in the global GICS Marine Ports & Services index, which has a P/E average of around 17, according to Reuters data.
"The stock will open up stronger but the results are already reflected in the price," said Alfred Fayek, director of the EFG Hermes Gulf institutional sales desk.