KUALA LUMPUR: Westports Holdings Bhd reported a throughput volume of 2.55 million TEUs in the first quarter of 2023 with much of the volume underpinned by intra-Asian shipments.
The port operator reported a pre-tax profit of RM236.88mil in 1QFY23, lower than RM248.75mil in the same quarter in 2022.
However, its net profit was improved, rising to RM183.59mil from RM151.85mil in 1QFY22, owing to the absence of the Prosperity Tax in the quarter under review.
The group’s earnings per share for the quarter came to 5.38 sen, as compared to 4.45 sen in the comparative quarter.
At the top line, the group posted a total revenue of RM512.92mil, with 86% contribution from the container segment.
According to group managing director Datuk Ruben Gnanalingam Abdullah, manpower costs increased to incorporate higher salaries and allowances, while the electricity cost rose owing to the implementation of the current imbalance cost pass-through (ICPT) at the start of the year.
He noted also that as the global supply chain normalises and container shipping schedule reliability improves, the requirement for container storage eases, reducing the accompanying container storage revenue.
“Despite inflationary pressures and slowing economic momentum in many economies, Westports handled more transhipment and gateway containers – the latter amounted to 1.03 million TEUs, and it was the second highest ever on a quarterly basis.
“The domestic economy exhibited resilience as export-oriented sectors benefited from increased competitiveness while certain segments have benefited from regionalisation and foreign direct Investments,” said Gnanalingam.
Meanwhile, he added that the company expects an overall uptrend in decarbonisation cost as Westports implements more initaitives to achieve its commitment to net-zero carbon emissions by 2050.
Reference : https://www.thestar.com.my/business/business-news/2023/05/05/westports-posts-higher-1q-net-profit-of-rm18359mil