Asset sales lift 2012 profit to $555m
Dubai port operator DP World has reported profit of $555m for 2012 and outlined plans to spend around $3bn over the next two years investing in expanding capacity at various ports around the globe.
Profit was boosted from the sale of its stakes in two container ports in Hong Kong and growth in its emerging market ports.
In 2013-14, the company will continue investing using the cash on its balance sheet to refocus on areas the company thinks have high growth potential. “We have around $1.8bn of cash on our balance sheet and an unutilised revolver of $1bn, so we have enough cash to fund our capital expenditure plans,” says Yuraj Narayan, chief financial officer.
In April 2012, the company repaid a $3bn loan six months early.
Chairman Sultan bin Sulayem said the company’s strategy was to “actively manage our portfolio to maximum advantage, divesting non-core or low-return assets, and repaying debt”.
DP World has 11 new developments and expansion projects planned.