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DP World Posts 1.6% Volume Growth in Q2

July 24, 2019

DP World said on Tuesday that its second quarter gross container volumes rose 1.6 per cent year-on-year to 18.32 million twenty-foot equivalent units (TEUs).

In a statement, DP World said it handled 35.8 million across its global portfolio of container terminals in the first half of 2019, while gross container volumes grew by 0.5 per cent year-on-year on a reported basis and 0.5 per cent on a like-for-like basis, driven by strong performance across Asia Pacific, Indian Subcontinent and Africa, the Dubai-based group said.

"Strong performance across Asia Pacific, Indian Subcontinent and Africa drove growth in second quarter, but weaker volumes in the UAE and Australia offset this trend," said DP World, which acquired Dubai oil services company Topaz Energy and Marine for an enterprise value of $1.08 billion early this month.

DP World terminals handled 19.5 million TEU at a consolidated level during the first half of 2019, the global container terminal operator said. "Consolidated volumes in second quarter grew by 10.6 per cent on a reported basis but down 0.6 per cent on a like-for-like basis. The strong reported growth in Americas and Australia region is due to the consolidation of Australia and acquisition of Pulogsa which consists of two terminals in Chile."

In 2018, DP World handled 71.4 million TEU across its global portfolio of over 150 operations in over 45 countries across six continents.

"In line with our expectations, we have delivered a broadly stable volume performance in the first half of 2019," said DP World group chairman and chief executive officer, Sultan Ahmed bin Sulayem.

Despite uncertainty from the trade war, the company has seen robust volumes in Asia Pacific and Indian Subcontinent, while growth in Africa remains strong. "In contrast, UAE and Australia volumes have been soft due to a loss of lower-margin cargo and challenging market conditions. However, we expect a more stable throughput performance in the UAE for the second half of the year," said Sulayem.

"On our broader portfolio, we have made good progress in strengthening our product offering, allowing us to enable trade and connect directly with end customers to deliver a range of logistic solutions. Our near-term focus is on integrating our recent acquisitions, managing costs and disciplined investment to cement DP Worlds position as the trade partner of choice," he said.

DP World recorded Dh9.175 billion worth of acquisitions last year. "In recent years, we have been investing selectively in the marine logistics sector in companies with high revenue visibility, consistent track record and strong customer relationships, and this acquisition complements the operations of our P&O Maritime Services, which maintains over 300 vessels globally," Sulayem has said while announcing the Topaz Energy acquisition early this month.

Source:
https://www.khaleejtimes.com/business/local/dp-world-posts-16-volume-growth-in-q2

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