Moody's: DP World's strengthening credit fundamentals driven by emerging markets focus (UAE) - Zawya

DP World's solid operational and financial results for H1 2011 show that its operations in emerging markets are generating at least 75% of the group's revenues and will continue underpinning its strengthening credit fundamentals, says Moody's Investors Service. Despite the greater weight of emerging markets, DP World nevertheless maintains a solid footing in developed markets, with ports supporting logistics and trade activities in a number of western European locations.

These results stand out against a background of wider market concerns about the political turmoil in parts of the Middle East as well as about growth prospects for the major global economies.

According to DP World's H1 2011 results released on 25 August, underlying consolidated throughput and revenues have grown by 11% and 17%, respectively, with all regions contributing, but with emerging markets as the clear driving force. This includes the full pro-forma consolidation of its Australian ports, of which DP World sold a 75% stake (to Citi Infrastructure Investors) and which were deconsolidated from March 12. Importantly, stable containerised revenues accounted for 80% of the group's total, further to the addition of handling capacities in India, Pakistan and China. In addition to volume growth, DP Worldhas continued to focus on cost management and has demonstrated its ability to command price increases (with like-for-like revenues per standard container rising to USD93 in H1 2011 vs. USD90 in H1 2010), resulting in a 22% increase in reported EBITDA margins, excluding one-off items.

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