A recently published statement by ports operator DP World revealed that the company's net profits dropped by 5.44 per cent in 2005, a decline due mainly to sharp rises in costs such as finance charges.
Formerly named Dubai Ports Authority until it changed its name to DP World earlier this year, the company said that its net profits last year dropped to Dh880.31 million, as compared to Dh930.95 million during the previous year.
On the other hand, the company's revenue from the operations of DP World and its subsidiaries rose by 45.5 per cent to Dh2.48 billion during the period in review, according to Gulf News.
Operating expenses also jumped, by a reported 55.7 per cent, to reach Dh1.06 billion, while general and administrative expenses rose to Dh315.9 million, reflecting a staggering three-fold increase.
The company reportedly incurred finance costs of Dh214.5 million in 2005, up from zero in the previous year. Short-term borrowings ballooned to Dh6.08 billion from zero in the previous year.
The report follows the listing on DIFX earlier this year of a sukuk floated by DP World's parent, Ports Customs and Free Zone Corporation, The sukuk, linked to a possible IPO of a group company before the end of 2007, raised $3.5 billion.
DP World is the world's third-biggest ports operator. It acquired P&O earlier this year.
