Port operator DP World, which is part of the debt-laden conglomerate Dubai World, today reported a 46 per cent decline in its annual profit at $333 million in 2009 against $621 million in 2008.
DP World said the annual results are "better-than-expected" despite the challenging economic situation and the fall in global trade during the year.
The port operator raked in revenues of $2.82 billion in 2009 as against $3.28 billion in the comparable period, the statement added.
"2009 has been a challenging year for all economies and across all industries. Our confidence in the long-term nature of our industry means that we continue to invest in much needed new capacity–- Doraleh in Djibouti and Saigon in Vietnam opened in 2009; and Callao in Peru and Vallarpadam in India will open in 2010," DP World Chairman Sultan Ahmed bin Sulayem said while announcing the results here today.
Noting that it has performed "remarkably well", DP World said the group reported a substantially smaller decline in volumes than the industry as a whole, apart from reporting profit of over $300 million.
The company's EBITDA (earnings before interest, tax, depreciation and amortisation) is in excess of $1 billion, while gross cash generation from operations stand at $992 million.
DP World Chief Executive Mohammed Sharaf said in the first two months of 2010, the company has seen 4 per cent volume growth across its portfolio, primarily because of a very low base last year. The EBITDA margins have improved compared to the last quarter of 2009, mainly on account of cost-cutting measures, he added.
Meanwhile, the parent Dubai World is working on a plan with its creditors to restructure its debts worth about $22 billion.
