P&O Ferries lands multi-mn loans from DP World amid financial and political strain: Port operator DP World has extended a series of loans worth GBP 365 mn to subsidiary P&O Ferries since 2022, the Financial Times reports, citing filings it has seen. The loans were handed out after the subsidiary incurred GBP 249 mn in losses due to breaches on external debt clauses and contention over the firing of 800 shipping workers. It has since repaid the debt.

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Refresher: DP World initially took over the formerly London-listed P&O in 2006 for GBP 3.3 bn, 70% above market value. Soon after, DP World offloaded the ferry operator to state-owned Dubai World, before buying P&O back in 2019 for GBP 322 mn.

The restructuring and ensuing losses saw the British shipping firm turn to DP World, its sole shareholder, for a series of loans in 2022, the latest of which was a “temporary” loan of GBP 76.9 mn in April, set to be paid off with the money P&O will get from the sale of its ferry, the Spirit of Britain. Built at a cost of GBP 157 mn, the ship was sold in May for EUR 89.4 mn to Irish Continental Group by DP World France SAS, the port operator’s French subsidiary, which had previously owned the ferry.

The French DP subsidiary stepped in to help support P&O’s balance sheet: In 2022, the French DP World subsidiary took over P&O’s financing obligations for ships under construction, which were then leased back to P&O under charter agreements.

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