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Thursday, 29 March 2012

DP World's net profits leap 82%

Net profits at DP World Ltd. (DPW), the world’s third- biggest port operator, leaped 82% as result of gains from the sale of assets in Australia and a rise in container handling volumes.

Net income climbed to $683 million from $375 million a year earlier, the Dubai-based company said in statement. Profit before separately disclosed items rose 23% to $459 million, it said.

“We have benefited from the improvement in global container volumes whilst retaining a very clear focus on generating additional revenue, driving productivity and upholding a disciplined approach to cost management,” DP World's Chief Executive Officer, Mohammed Sharaf, said in the statement.

DP World last year completed the sale of a 75% stake in its Australian unit to Citi Infrastructure Investors and one of Citi Infrastructure’s investors for $1.5 billion.

The company, which operates more than 60 terminals across six continents, said on March 26 that it will repay a $3 billion revolving credit facility six months ahead of schedule with its own cash and set up a $1 billion facility for investments.

DP World reported a strong start to 2012 with cargo volumes increasing 11% in the first two months of the year. DP World said it handled 55 million boxes in 2011, with capacity utilisation remaining at above 80%.

DP World’s board recommended a dividend of 24 cents a share for last year.

“The board is confident of the company’s ability to continue to generate cash and support our future growth whilst maintaining a stable dividend payout,”the company said.

The shares listed on Nasdaq Dubai rose 20 percent this year and were trading 0.1 percent higher at $11.59 at 12:17 p.m. The stock traded on the London Stock Exchange gained 14 percent during the same period and were at 720 pence today. The yield on DP World’s 6.25 percent sukuk due July 2017 has fallen 81 basis points this year to 5.11 percent today.

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