Dubai: DP World, the state-owned port operator, said on Thursday that it handled 17.6 million TEUs (twenty-foot equivalent units) across its global portfolio of container terminals in the first quarter of 2018.

It added that gross container volumes grew by 7.3 per cent year-on-year, and 8.4 per cent on a like-for-like basis, well ahead of Drewry Maritime’s industry estimate of 4.6 per cent global throughput growth for the first quarter of 2018.

Despite its positive results, DP World senior executives warned of geopolitical risk, saying some regions faced “uncertainty.”

According to DP World, the first quarter witnessed a continuation of the recovery in global trade, with all three regions delivering growth.

The company singled out its terminals in Europe, the Middle East and Africa and Australia, for performing especially well.

The UAE continues to deliver stable growth and handled 3.8 million TEUs, growing 2.9 per cent year-on-year in the first three months of 2018. Improvement in performance

At a consolidated level, DP World says that its terminals handled 9.2 million TEUs during the first quarter of 2018, a 6.6 per cent improvement in performance on a reported basis and up 6.8 per cent year-on-year on a like-for-like basis.

“Following a strong year for the global container market in 2017 with peak levels since 2011, our portfolio has had an encouraging start to 2018 delivering ahead-of-market growth. The robust performance was delivered across all three regions, which once again demonstrates that we have the relevant capacity in the right markets,” Group chairman and chief executive Sultan Ahmad Bin Sulayem said in a statement.

He added: “We are pleased to see volumes recover in Australia while our terminals in Europe, the Middle East and Africa continue to deliver strong growth, and the UAE continues to stabilise. While the trade environment may appear more benign, geopolitical headwinds in some regions continue to pose uncertainty. Nevertheless, we still expect to grow ahead of the market and see increased contributions from our new investments.”

Port operator of choice

Last month, the top executive described actions taken by the government of Djibouti to illegally seize control of DP World’s port there as “unfortunate” and “illegal.”

The company has also faced trouble in Somaliland.

“The first quarter volume performance demonstrates that our portfolio is well positioned to deliver growth, and our continued focus on delivering operational excellence as well as disciplined investment should ensure that we remain the port operator of choice across geographies,” Bin Sulayem concluded.

Factbox: DP World shareholders approve higher dividends

Shareholders of DP World approved on Thursday a decision to distribute dividends of 41 US cents per share for 2017.

DP World’s board of directors in March recommended increasing the company’s dividends for the year from 38 US cents a share for 2016 as profits last year grew nearly 15 per cent.

During the company’s annual general meeting, shareholders also approved the reappointment of Sultan Ahmad Bin Sulayem, who is the chairman and chief executive officer, as a director.

— Staff report