WESTPORTS Holdings Bhd has registered a lower quarterly net profit and sales on the back of lower operational revenue triggered by the Covid-19 crisis.
The port operator posted a net profit of RM134.34 mil for the second quarter ended June 30 compared to RM166.31 mil for the same period last year. The group also posted lower revenue of RM405 mil as opposed to RM454 mil last year.
Decline in revenue and profits stemmed from the reduction in container and conventional throughput as well as operational revenue due to Covid-19, Westports said in a bourse filing today.
The group also recorded lower first-half results. Net profit came in at 287.14 mil compared to RM306.22 mil last year while revenue came in slightly higher at RM905.06 mil as opposed to RM869.64 mil last year.
Revenue results were “mainly attributed by the reduction in container and conventional throughput and offset with container tariff hike with effect from March 1,” Westports said.
Declines in profits were due to impairment loss of trade receivables and one-off asset write-off, the group added.
Westports group managing director Ruben Emir Gnanalingam said that global consumption and economic activities would unlikely resume immediately due to the Covid-19 crisis.
“The adverse effects on employment and income levels will curtail consumption and the overall economic recovery. Hence, the company cautioned that it does not expect container throughput to register an overall increase for the second half of the year 2020,” he said in a statement.
The momentary pause in volume growth, Ruben added, had provided Westports more time to plan and execute the land reclamation phase at a more competitive cost of the mega container terminal expansion from CT10 to CT17.
Westports’ shares trended at RM3.67 or 2.13% down after the midday break today. – July 24, 2020
