DPW Looks Ahead to Expansion Drive
According to reports, DP World, on target to achieve 40 percent growth in four years, will spend up to $3b to boost container traffic at the 52 port terminals it currently operates around the globe. Announcing the formal launch of Dubai World — the holding group comprising a collection of companies, including P&F World, the parent company of DP World — Sulayem said the diversified entity, which has seen the size and spread of business growing over the past couple of years, is geared to tap further huge potential for growth. Sulayem said DP World and its adviser Deutsche Bank were evaluating various offers for the six US terminals it acquired as part of the $6.8 billion take-over of Peninsular & Oriental Steam Navigation Company in February.
P&O India Port Concessions
The Peninsular & Oriental Steam Navigation Company (P&O) said its Ports unit had won a 30-year concession to develop a container terminal in India worth $170 million. The concession provides for the modernization of the current terminal operations and the development of Madras in southeast India as a major hub port. - (Reuters)
Analysts "Reduce" Recommendation on P&O
Dresdner Kleinwort Wasserstein said on Wednesday it was cutting its recommendation on P&O (Peninsular & Oriental Steam Navigation Company Plc) to reduce from hold and had a price target of 240 pence a share. A research note said a recent visit to P&O Ports discovered that new project start-ups were proceeding apace and underlying volume growth was still healthy, although the market rate had fallen as world trade had slowed. Slower growth should prove challenging to P&O Nedlloyd as container shipping capacity is set to grow 12.5 percent this year and 11 percent next year. "Utilization will come under pressure and freight rates are likely to fall. It is largely a question of the timing and order of magnitude," the note said.
P&O Port Business Is Strong
Peninsular & Oriental Steam Navigation Company Plc (P&O) said its ports business remained robust during the second quarter despite slower growth in world trade. But analysts said P&O's trading update confirmed its ports division's 10 percent internal growth for the quarter on a year ago was still below the company's target annual rate of 16 percent growth for the 12 months to December 31, 2001. P&O's ferries business found conditions tough in the quarter, raising the prospect that some analysts might trim full-year earnings forecasts on the back of less-than-expected ports growth and deteriorating ferries and container markets. "The ports business is showing some robust growth as they would say…
P&O Wins 30-Year Concession for Container Terminal
British shipping and logistics group The Peninsular & Oriental Steam Navigation Company (P&O) said on Thursday its Ports unit had won a 30-year concession to develop a container terminal in India worth $170 million. The concession provides for the modernization of the current terminal operations and the development of Madras in south east India as a major hub port.
Merrill Lynch "Reduces" P&O's Rating
Merrill Lynch said on Monday it had cut its rating on British shipping and logistics group The Peninsular & Oriental Steam Navigation Company (P&O) to "reduce" from "neutral" in the intermediate term. Analysts at the investment bank also cut their long-term rating on the stock to "accumulate" from "buy", citing a worsening outlook for the company's container business. They expected second-quarter results for P&O Nedlloyd (P&O's joint venture with Dutch Koninklijke Nedlloyd Groep), due on Thursday, to be poor for sentiment, they said. "The tone is unlikely to be encouraging and the risk with forecasts is on the downside," they said.
P&O: Economic Slump To Affect Future Revenues
P&O Nedlloyd said on Thursday that global economic slowdown was expected to affect future revenues, as the container shipping group posted a slight rise in second quarter operating profit. P&O Nedlloyd - a joint venture between Peninsular & Oriental Steam Navigation Company Plc (P&O) and Koninklijke Nedlloyd Groep - said operating profit for the quarter rose to $46 million from $44 million a year ago. Overall volumes rose four percent from last year, but the average revenue rate fell four percent. "Slower growth in world trade and new capacity entering the market are expected to adversely impact future load factors and revenue," the group said in a statement.
