DP World announces unaudited results for first half of 2009

Summary

• Consolidated throughput of 12.3 million TEU2 (13.6 million)
• Revenue of $1,384m ($1,598m)
• EBITDA3 of $535m ($652m)
• EBITDA margins of 38.7% (40.8%)
• Adjusted net profit after tax from continuing operations of $188m ($287m)

The first six months of 2009 have continued to present a very challenging operating environment across the portfolio. Despite the 10% decline in container volumes, EBITDA margins have remained strong at 38.7%, which is primarily as a result of solid results from emerging market terminals, improving terminal efficiencies and a strong focus on managing costs across our portfolio.

During the period we were awarded new concession agreements in Algeria, for ports in Algiers and Djen-Djen, which we began operating in the second quarter. We renewed two concessions in Australia in Adelaide and Sydney, for a further 30 years and 15 years respectively, and we began operations at new development Doraleh, Djibouti.

Our terminals in the UAE delivered a solid performance, working with our customers to handle larger container vessels and deliver a cost efficient platform from which customers are able to deliver cargo around the Gulf and Middle East and further afield into India and Africa.

Mohammed Sharaf, Chief Executive Officer, DP World, commented:

"Our business has responded well to the very challenging macroeconomic environment in the first half of this year which resulted in a 10% decline in container volumes."

Sharaf added, "These results show that our business model has the flexibility to adapt to changing market environments. All our terminals around the world have worked very hard to improve efficiencies for customers and remove costs from the terminals to ensure we continue to operate efficient and profitable terminals. The quick action of management has resulted in a more positive outcome than might otherwise have been."

"Our portfolio has benefitted from our focus on emerging markets and in particular the UAE has continued to deliver a solid performance as the gateway for trade to the Gulf and Middle East," he stated.

Sharaf went on to say, "Looking ahead, the unpredictable trends in global trade we have seen in the first half of the year continue into the second half of the year. Our terminals remain focused on improving efficiencies for our customers and cutting costs to minimise the impact of declining volumes on profitability. As we move through the second half, the incremental benefit of cost savings is expected to be offset by a weaker outlook for non container revenues."

He said, "We are also ensuring that our portfolio emerges in a highly competitive position to benefit from the recovery in global trade. Reiterating what we said in July, at this stage we expect to deliver full year results in line with expectations."

The Board continues to explore options to improve the market valuation of our Company. The Board will use the next few months to review all options available.