KUALA LUMPUR (Aug 24): Bintulu Port Holdings Bhd's second quarter (2QFY17) net profit dropped 20.5% to RM23.8 million from RM29.9 million a year earlier despite higher revenue during the quarter under review.

Its revenue grew 12.5% to RM154.3 million in 2QFY17 from RM137.2 million in the same quarter last year, according to the filing with Bursa Malaysia.

"The increase in revenue at Bintulu Port is mainly from LNG (liquefied natural gas), Container, Bulk Fertiliser and Other Miscellaneous Services," explained Bintulu Port in its quarterly financial result announcement.

The lower net profit was dragged down by higher expenses reported during the quarter under review at RM120.17 million compared with 108.37 million in 2QFY16.

"The increase in expenditure is on the Service Contract for handling of cargoes at the port and maintenance work to the bulking facilities, the port’s infrastructure and equipment.

"During the quarter under review, SIPSB (Samalaju Industrial Port Sdn Bhd) has also recognized expenditure relating to amortisation of leased concession assets, amortisation of other concession infrastructure and equipment as well as finance cost relating to the sukuk," Bintulu Port said.

For the first half of the financial year (1HFY17), net profit increased slightly by 6.2% to RM74.4 million from RM70.1 million in 1HFY16, along an increment of 13% in revenue from RM279.1 million to RM315.4 million.

Moving forward, Bintulu Port remains cautious on more increases in expenses.

"Though there will be growth in terms of revenue, the expenditure to be recognised relating to amortisation of lease concession assets, other concession infrastructures and equipment as well as the Sukuk finance charges at Samalaju will give a downward impact on the overall performance of the group," it added.