Profits for ports operator DP World in Dubai swell to $450 million

Dubai's DP World, 80 per cent owned by Dubai World, filed net profits of $450 million last year in a statement to Nasdaq Dubai, compared with $333 million for 2009. Revenue rose 9 per cent to $3.08 billion.

Ports operator DP World has posted profits of $450 million. Photo Courtesy DP World

DP World, the ports and logistics group owned by the government of Dubai, has reported a 35 per cent jump in profits for 2010 and expects to see further gains this year, despite challenging conditions in global trade markets.

The company, 80 per cent owned by Dubai World, filed net profits of $450 million last year in a statement to Nasdaq Dubai, compared with $333 million for 2009. Revenue rose 9 per cent to $3.08 billion.

DP World is planning a listing on the London Stock Exchange. Chairman Sultan Bin Sulaayem said: "We remain committed to listing on LSE and are focused on completing the process in a timely manner."

He added: "In the first two months of 2011 we have seen 12 per cent volume growth across our consolidated portfolio with further margin improvement from the full year 2010. Despite continuing economic fragility and political turbulence in some parts of the world, given the geographic spread of our portfolio, we remain confident that we will make further progress in 2011."

Mr Bin Sulayem said: "2010 saw a return to volume growth across almost all our terminals, albeit with different rates across regions. We saw both rapid recovery in global trade in those markets most affected by the decline in container volumes in 2009, and a return to more modest growth in those markets which showed resilience during 2009.

"Almost all of our container terminals around the world are back at or ahead of volumes last seen in 2008 which was a peak year for the global container terminal industry.

"Despite continuing economic fragility and political turbulence in some parts of the world, given the geographic spread of our portfolio, we remain confident that we will make further progress in 2011," he added.

The dividend will be increased by 5 per cent to 0.86 cents per share, equal to total dividend payment of $143 million, most of which goes to Dubai World.

The shares nudged up slightly to 60 cents in early trading.