P&O charts positive course in outlook

P&O has reiterated its upbeat outlook and says container port volumes are continuing to improve.

P&O has reiterated its upbeat outlook and says container port volumes are continuing to improve.

P&O says overall trading conditions remain consistent with its last update in May when the company said strong volumes at container shipping company P&O Nedlloyd were helping to drive growth.

P&O says volume and revenue growth at P&O Nedlloyd was ahead of market expectations but has been partially offset by higher fuel costs and the impact of adverse exchange rates.

The company, which has a presence in 17 countries, including the Republic, and 27 container terminals, says organic growth for container ports remains above 20 per cent year-on-year.

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But P&O said its ferries division has continued to see lower rates and volumes in the tourist market.

The company has been restructuring its ferries operation with the creation of a single brand following the acquisition of Swedish firm Stena's 40 per cent stake in P&O Stena Line. Company shares eased 3.5p to 232.5p.