KUALA LUMPUR (Feb 2): Westports Holdings Bhd’s net profit fell 12.3% to RM206.08 million in the fourth quarter ended Dec 31, 2023 (4QFY2023) from RM235.04 million a year earlier, due to a reduction in share of results of a joint venture which made a substantial write-back of impairment gain in 4QFY2022.

As a result, its earnings per share for 4QFY2023 came in lower at 6.04 sen compared with 6.89 sen for 4QFY2022.

Nevertheless, quarterly revenue rose 6.3% to RM554.06 million from RM521.14 million a year earlier on the back of higher container revenue.

“The year ended with the company handling more than one million TEUs [20-foot equivalent units] in December 2023 — the highest monthly container volume,” the port operator said in a statement on Friday.

Additionally, in December last year, the group facilitated a cumulative movement of three million units of roll-on/roll-off vehicles and equipment since its inception.

Westports announced a second interim dividend of 8.72 sen per share for FY2023, payable on Feb 29, bringing the total dividends for the year to 16.91 sen.

For the full year FY2023, the group’s net profit increased 11.4% to RM779.43 million from RM699.58 million in FY2022. Meanwhile, the group recorded its highest-ever revenue of RM2.15 billion, a 4% increase from RM2.07 billion in FY2022.

Westports handled a record container volume of 10.88 million TEUs in 2023. It said empty boxes repositioning and much-improved gateway volume, arising from more industries and companies operating in Malaysia, supported the group in reaching a container volume growth rate of 8%.

On prospects for FY2024, the group is cautiously forecasting a low single-digit growth rate in container volume over the previous year amid the conflict beyond the Middle East and a sharp reduction of economic growth in many major developed economies.

“The interest rate increase was a critical feature of last year’s economic landscape. The prospects of stable or lower rates in the current year could provide some buffer to consumers’ containerised consumption,” it said.

Westports executive chairman cum group managing director Datuk Ruben Emir Gnanalingam Abdullah said the end of 2023 also saw Westports signing the long-awaited new concession agreement with the authorities, extending the concession period by 58 years to 2082.

"Westports will celebrate its 30th anniversary in 2024 even as we embark on our Westports 2 expansion programme. We look forward towards contributing to our stakeholders just as much as we appreciate and value all their contributions that have made Westports successful today and also tomorrow,” he added.

At 2.43pm on Friday, Westports shares were up one sen or 0.26% to RM3.81, giving it a market capitalisation of RM12.99 billion.