UPDATE 2-DP World sees problems accessing finance in future

* Company balance sheet "very strong" for now,

* Container volumes fall 8 pct in 2009

* America/Australia sees biggest decline, down 15 pct

* To focus on managing costs in 2010

* DP World shares flat (Recasts, adds CEO comments, analyst quotes)

By Tamara Walid and John Irish

DUBAI, Jan 25 (Reuters) - Port operator DP World DPW.DI, a unit of troubled state-owned conglomerate Dubai World [DBWLD.UL], has a healthy balance sheet, although raising finance in the long-term could be an issue, its chief executive said on Monday.

Mohammad Sharaf also said the company will look at cost cutting measures across the board, but declined to specify whether it planned to cut jobs this year.

The port operator, one of the largest in the world, said a decline in container volumes was likely to hit its full-year pretax profit, but it would be in line with market expectations.

"We are comfortable and have cash available for the expansion of our business," Sharaf said during a conference call. "Going forward... liquidity is a problem, but as of now we have a very strong balance sheet."

Sharaf did not give a timeframe for potential financing problems.

DP World's net debt was $4.79 billion as of June 30 and it has no corporate debt maturing until 2012, according to financial statements.

Sharaf said he expected growth to come from emerging markets in 2010, but declined to be more specific.

Dubai World, which shock global markets in November after requesting a standstill on $26 billion in debt, is the majority shareholder in DP World. DP World and its debts are not part of the restructuring, Dubai World said at the time. [ID:nGEE5AP04P]

Container volumes for the full-year 2009 period fell 8 percent to 25.6 million twenty foot equivalent units (TEUs) across its 28 consolidated terminals. The Americas and Australia saw the biggest fall, sliding 15 percent.

"As anticipated, all our regions handled more containers in the second half of 2009 than in the first half and the early signs of stability seen in the third quarter have continued into the final quarter of the year," Sharaf said in a statement.

MAC Capital Advisors sees DP World posting a 2009 net profit of $323.3 million, a fall of 39 percent.

"Customer confidence, whilst improving, remains fragile with limited visibility for the medium term," the statement said.

International shipping has been hit hard by the financial downturn, largely due to overcapacity caused by a construction boom that took place before the slump began.

DP World shares rose as much as 1 percent to $0.525 in trading on Monday, although they were flat at 1122 GMT.

MANAGING COSTS, LONDON LISTING

Ali Khan, managing director and head of brokerage at Arqaam Capital said DP World might have turned a corner after volumes rose in second half of 2009 versus the first half.

"Container volumes should continue to rise, creating better operating margins as a consequence," he said. The firm has a buy rating on the stock.

"Predicting global trade trends in 2010 remains challenging ... whilst we expect to see container volumes improve we will continue to remain focused on growing revenues and managing costs to drive earnings before interest, tax, depreciation and amortisation (EBITDA) forwards," Sharaf said.

Sharaf said managing costs in 2010 will be similar to last year and would include revisiting projects.

"(Managing costs) means everything from A to Z," he said, when asked if job cuts were under consideration.

DP World said in January 2009 it was reviewing all expansion projects, cutting costs and freezing recruitment in view of the anticipated slowdown in 2009. It cut around 1,300 jobs as part of previously announced 12,000 job cuts at Dubai World.

DP World, whose shares trade on the Nasdaq Dubai market, said earlier in January it could list on the London Stock Exchange as soon as the second quarter of 2010.

Sharaf said the firm was still aiming for a second quarter listing depending on board approval.

Excluding new terminals which joined the portfolio in 2009, volumes declined by 10 percent, while across all 50 of its operational terminals in 2009 the port operator handled 43.4 million TEUs, a 6 percent fall over 2008.

For a TAKE A LOOK on Dubai's debt crisis see [ID:nGEE5AO2FN] (Editing by Mike Nesbit and Hans Peters)