WESTPORTS Holdings Bhd’s net profit for the fourth quarter ended Dec 31, 2019 (4QFY19) fell to RM125.43 mil from RM145.54 mil a year ago despite posting a higher revenue of RM452.82 mil versus RM418.01 mil.
However, the company’s full FY19 net profit rose 11% to RM590.9 mil from RM533.47 mil in the previous year while revenue increased to RM1.78 bil from RM1.61 bil.
It attributed the improved results mainly to the higher container volume handled and a modest increase in cost of sales under the new accounting rules, Malaysian Financial Reporting Standards 16 (MFRS 16), despite impairment made for a vessel incident.
Westports achieved another consecutive record-breaking container throughput level during 4QFY19, handling 2.82 million twenty-foot equivalent units (TEUs) while the 12-month volume increased by 14% to 10.86 million TEUs from that achieved in FY18.
In a statement, group managing director Datuk Ruben Emir Gnanalingam said the company had sustained its favourable container throughput growth momentum due to strong support from its clients, including liners under the Ocean Alliance as the latter uses Westports as one of its transshipment hubs in Southeast Asia.
“The growth in the intra-Asia segment had also underpinned the broad-based momentum to support the company towards achieving the container volume growth of 14%, which is well above the industry’s average.
“Westports has accommodated a greater proportion of ultra-large container vessels at our berths as the liner industry deploys more and bigger container vessels,” he added.
Looking ahead, Ruben said the company expected a modest container volume growth this year due to the enlarged throughput base and cautious industry outlook.
“Nevertheless, Westports is planning for a multi-billion container terminal expansion to facilitate longer-term growth and will fund the significant investments required with support from the capital market.
“Eventually, the expanded facilities would strengthen Port Klang’s role as the pre-eminent port for the nation’s gateway trade, while also enhancing our terminal as one of the main transshipment hubs in Southeast Asia for international container shipping alliances,” he added. – Feb 7, 2020
