One of the world’s largest global ports operator – DP World – has not been implicated by its parent company’s plan to delay repayment on some of its $59 billion worth of current liabilities.

“The Government of Dubai has confirmed that DP World and its debt are
not included in the restructuring process for Dubai World announced
today,” said DP World last Wednesday.

The emirate government of Dubai had announced that it will be seeking a
delay in debt repayment to creditors of Dubai World and property group
Nakheel – as it restructures the Dubai World group.

Dubai World is one of the emirate’s three big holding firms, along with Dubai Holding and the Investment Corporation of Dubai.

Dubai World’s affiliates include Nakheel, DP World and Istithmar, an
investment company with a portfolio of over 50 firms in the financial
services, consumer, industrial and property sectors.

Dubai World’s current liabilities have been pegged at $59 billion,
making it the emirate’s largest corporate debtor, and delaying
repayment on some of its debts could signal a broad restructuring of
the emirate’s corporate landscape, Reuters reported.

According to the emirate’s government, Dubai World is slated to ask all
of its and Nakheel’s creditors to extend maturities on debt until at
least May 30 next year.

It has been estimated that about $5.7 billion of debt is due to mature before the end of May.

Despite widespread economic turmoil in the first half (H1) of this
year, DP World managed to record net profit for H1 2009, albeit a 34.5%
fall from the same period last year.

H1 profit fell to $188 million from $287 million in the same period
last year, while revenue also dipped by 13.8% to $1.384 billion for the
first six months from $1.598 billion a year earlier.

The results reflect a 10% decline in container volumes across DP
World’s portfolio of 49 terminals, as well as a substantial drop in
non-container revenue of 23%.

Source: Portworld

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