DP World profit up 67%

Global container terminal operator DP World on Thursday reported a “better than expected profit” of $751 million for 2011, up 67 per cent on 2010.

The world’s third largest container terminal company said it benefited from the improvement in global container volumes while retaining a very clear focus on generating additional revenue, driving productivity and managing costs.

The strong results come in the wake of the Dubai-based group’s announcement that it would pay off $3 billion of debt months before it becomes due by using existing cash resources.

In a statement, the company said a growth in container volumes has resulted in Ebitda of $1.307 billion and an Ebitda (Earnings Before Interest, Taxes, Depreciation and Amortisation) margin ahead of expectations at a record 43.9 per cent. “When compared with the previous 2010 year, underlying volume growth was nine per cent, with underlying revenue growth of 14 per cent and underlying Ebidta growth of 19 per cent.”

The company said it profit attributable to the owners of the company, after separately disclosed items, was $683 million, “significantly ahead of the prior year as strong profit growth from operations was supplemented with a one-off gain from separately disclosed items including the profit on the monetisation of 75 per cent of our Australian terminals.” This resulted in earnings per share of 82 cents.

In the Middle East, Europe and Africa region, Ebidta grew nine per cent to $861 million, with a margin of 45.7 per cent. In the Asia Pacific & Indian Subcontinent region, earnings increased 26 per cent to $322 million with a significantly improved margin of 64.5 per cent. The Americas and Australia region posted earnings of $203 million.

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