Economy
DP World gives hope to struggling Dubai World |
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| Economy | |
| Written by Roberta Murray | |
| Wednesday, 18 August 2010 | |
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The global port operator DP World posts higher first half profits today.
Dubai World - the embattled investment conglomerate that was core to the Dubai Debt crisis - will be boosted by news that one of its companies has posted strong profits. Earnings from continuing businesses were $206.5 million. DP World benefited from a 7 percent increase in cargo volume at marine terminals it owns or has operational control of — a sign that shipping container traffic is starting to rise following a severe slump caused by the global economic downturn. It expects business to improve further in the second half of the year, reflecting higher seasonal demand, such as companies stocking up on holiday inventories. But executives cautioned that it is too early to say whether the rebound can last. "It is tough to call. There is still uncertainty. To firmly commit that these kind of growth rates will be sustainable, it's premature at this stage," Chief Financial Officer Yuvraj Narayan told reporters. DP World opened a new port in Callao, Peru, earlier this year, and plans to inaugurate two new projects in India and Pakistan later in 2010. Cargo volumes rose more sharply at DP World's existing terminals, where business was up 10 percent, Narayan said. The increased trade helped drive revenue 5 percent higher to $1.46 billion. DP World is one of the more profitable arms of indebted state conglomerate Dubai World. It is excluded from its struggling parent's $23.5 billion debt restructuring effort. The port company has operations at 50 marine terminals on six continents, including the Middle East's busiest port in Dubai. It owns or has operational control of 28 of those — known as consolidated terminals. That is where it saw volumes rise 7 percent to the equivalent of 13.2 million standard 20-foot (6-meter) shipping containers.
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