DP World Limited preliminary results for the twelve months to 31 December 2008

Dubai, 25 March 2009: - DP World today announced strong results for the 12 months to 31December 2008, building on the excellent performance in the first half and delivering another year of solid profitable growth.

The highlights include consolidated throughput growth of 15% to 27.7 million TEU (2007: 24 million TEU), Strong revenue growth of 20% to $3,283 million (2007: $2,731 million), EBITDA2 increased 22% to $1,340 million (2007: $1,100 million); with margins at 40.8%, Profit after tax for continuing operations increased 48% to $621 million (2007: $420 million), Net cash from operating activities increased 12% to $1,069 million (2007: $955 million), Pro forma earnings per share increased 53% to 3.45 cents3 (2007: 2.26 cents), and Dividend of 0.69 cent per share. DP World Chairman Sultan Ahmed Bin Sulayem said; “2008 was another year of excellent performance for DP World where our focus on the faster growing emerging markets and origin and destination cargo allowed us to once again outperform the market, delivering results ahead of expectations. Profit after tax was in excess of $600 million and cash generation in excess of $1 billion. This excellent performance in 2008 leaves us in a strong financial position to meet the challenges that lie ahead in 2009. “The volume deceleration we saw in the last quarter of 2008 has continued into early 2009 and shows little sign of easing in the foreseeable future. Falling utilisation rates across container terminals globally mean the demand for new capacity in the short-term is much diminished. Taking into account our existing pipeline of committed capacity the company has decided todefer much of our planned new capacity until such time as higher utilisation rates return.

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LR opens $8m surveyor training facility in Shanghai

Shanghai: Lloyd’s Register Asia today opened its first dedicated marine surveyor training centre in Shanghai.

The Maritime Surveyor Training Institute (MSTI) represents more than an US$8 million investment for the organisation in the first five years of operations, during which time 200 newly trained surveyors are expected to graduate from the program.“Quality staff training provides the most significant contribution to the continued development of our core product -- the provision of independent technical assurance to the maritime industry,” said Roy Ellams, Lloyd’s Register Asia’s Marine Training Manager – North Asia. “It ensures that we always will have the right skills to support the provision of maritime transport services that are safe for both mariners and the environment.” Ellams says the MSTI represents a new approach to the development of technical competency for the industry, offered at a time when commercial pressures are driving the need for innovation. With the recession shrinking access to new capital for companies in the maritime industry, he says new solutions are required for old problems.

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DYT Makes Large Yacht Shipments

In late February, Dockwise Yacht Transport’s (DYT) 456 ft Super Servant 3 left Port Everglades for Toulon, unloading 18 yachts and loading one in St. Thomas, then moved on to Martinique where it loaded 18 more yachts, totaling 32 power and sailing yachts for a final cargo value of $140m.

In early March, the second of DYT’s fleet of semi-submersible transport ships, the 556 ft Super Servant 4, departed from Port Everglades, heading to Palma de Mallorca with another $140m worth of yachts. “For the most part, the yachts are headed for the Caribbean and the Mediterranean for the Spring and Summer sailing season,” said DYT President Clemens van der Werf. “Some are charter yachts but others are privately owned. In fact, many of the yachts we shipped to the Med went there for vacation as well as charter commitments in conjunction with such May events as the MYBA Charter Show in Genoa, Cannes Film Festival and the Monaco Grand Prix.”All of this bodes well for the world’s only float-on, float-off transport service. “Of course we feel the effects of the economy on our business,” said van der Werf, “but it’s clear that our services, which once were a novelty due to the unique way our ships accommodate their cargoes, are now integral to the economy of an extensive, and certainly significant, global network of marine businesses and waterfront developments.”

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Dry-bulk rates slide as companies fight to keep their vessels on the water

With shipowners desperate for cargo, they're willing to take lower rates to keep their ships moving. Rates for dry-bulk freight, a leading indicator for global economic activity, have been falling for 10 straight days, reflecting a surplus of ships and falling prices for steel.

On Tuesday the Baltic Dry Index, which is managed by the Baltic Exchange in London and measures dry bulk shipping rates on 40 routes across the world, slid 15 points, to 1,758. That is still above its low near 700 in December, but the slide from 2,298 on March 10 is a negative sign, even though business is being done at reduced prices.Oppenheimer analyst Scott Burk said that when cargoes move in an environment of decreasing rates it implies a surplus of ships. "If there are a lot of cargoes shipowners expect to come on the market or too few ships they'd probably hold out for higher rates," Burk said. The current state of affairs signals that shipowners are willing to accept low rates out of desperation. But some owners may feel that as long as charter rates are above the breakeven mark, it makes sense to keep their ships moving. On Tuesday, the rate for Capesize vessels, the largest size and the one often used in the important iron and steel industries, was$19,909, down from $114,152 a year ago.Burk said DryShips has the highest cash break even cost in the industry with its Capesize clocking in at $14,500 per day, due to its high levels of debt, interest, and administrative costs. Meanwhile, Excel Maritime Carriers Capesize break even costs are $13,000 per day, OceanFreight is just over $12,000, Eagle Bulk Shipping is just under $12,000 as is Genco Shipping and Trading, FreeSeas is just under $11,000 per day, and Diana Shipping is the lowest, $8,900.

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New South China to US East Coast service

Grand Alliance members Hapag-Lloyd, Nippon Yusen Kaisha (NYK) and Orient Overseas Container Line (OOCL) and Zim Integrated Shipping Services have agreed to cooperate on the service from South China to US East Coast via the Panama Canal.

The joint operation will take effect from early April, subject to filing with the Federal Maritime Commission (FMC). New port rotation of the South China East Coast Express (SCE) service is Kaohsiung – Shekou – Hong Kong – Kingston – New York – Norfolk – Savanna – Kaohsiung on a 56-day round trip.

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