The CSI300 blue-chip index is now up nearly 30% from its February trough
markets50 minutes ago
HSBC said recent data for global ports indicates that trading remains challenging for most port operators, and industry volumes will shrink for the first time in 2009 by 10 per cent from a year ago.
“Clearly, a prolonged global or regional economic downturn will reduce volumes, prompt price competition between transhipment ports, or result in delayed or cancelled development projects by joint venture partners,” said HSBC.
It said across ports of DP World, the world’s fourth largest container port operator, volume is forecast to decline by 10.7 per cent in 2009, while profits will likely fall by 56.5 per cent to $249 million or earnings per share of $1.50.
A turnaround for DP World is seen in 2010, with HSBC projecting the container port operator’s operations to grow by 6.2 per cent and by 12.6 per cent in 2011.
HSBC said DP World’s global network, will allow it to withstand potential shakeouts in the container handling industry, citing its ability to raise financing, while 80 per cent of its long-term borrowings have maturity dates beyond 2012.
DP World on May 28 said it handled 10 per cent less cargo during the first four months of this year than it did in the same period a year ago, due to a contraction in maritime trade amid the global recession.
The port operator posted a record net profit of $572.3 million last year, but company officials had said previously that the economic slump forced the company to review its expansion plans.
On June 30, Standard & Poor’s downgraded DP World’s credit rating by two levels to BBB+, two levels above the lowest investment grade rating, with a “negative” outlook.
HSBC also maintained its target price for DP World at $0.45. Shares in DP World which are listed at Nasdaq Dubai, shed 0.3 per cent at $0.35 on Monday.
The CSI300 blue-chip index is now up nearly 30% from its February trough
markets50 minutes ago
The Indian state invites foreign investors and non-resident Indians to avail opportunities in one of the fastest growing economies of the world
business technology review51 minutes ago
Epic will also raise its competition concerns with regulators in the European Union
business54 minutes ago
The Operation Chivalrous Knight 3 team distributed potable water to areas where displaced people have gathered in Khan Yunis
uae59 minutes ago
The closure of Ratcliffe-on-Soar marks a symbolic step in the UK's ambition to decarbonise electricity by 2030, and become carbon neutral by 2050
world1 hour ago
UK's Starmer reiterates region needs to pull back from the brink
mena1 hour ago
GDP expanded by 0.5% in second quarter vs +0.6% in poll
economy1 hour ago
Alexander Permyakov confessed to the crime saying he had acted on instructions from Ukraine's SBU security service and was promised $20,000 to complete the job, says Russian state media
europe1 hour ago