KUALA LUMPUR (May 2): Malaysia’s biggest port operator Westports Holdings Bhd said on Thursday its net profit rose 11.4% year-on-year (y-o-y) in the first quarter, thanks to higher container revenue, coupled with higher finance income and share of results of a joint venture (JV).
Net profit for the three months ended March 31, 2024 (1QFY2024) was RM204.51 million compared to RM183.59 million over the same period last year, Westports said in an exchange filing.
Finance income rose 38% to RM3.8 million in 1QFY2024, from RM2.76 million a year before, while share of results of the JV stood at RM3.67 million, surging 47% from RM2.49 million previously.
As a result, its earnings per share for 1QFY2024 was higher at six sen compared to 5.38 sen for 1QFY2023.
Revenue for the quarter rose 5.9% y-o-y to RM543.15 million from RM512.92 million on the back of an increase in container revenue.
Westports saw container volume rise by 5% to 2.67 million 20-foot equivalent units (TEUs), while it handled bulk cargoes amounting to 2.76 million tonnes.
It said intra-Asia regional trade underpinned Westports’ container volume growth as this trade lane accounted for 68% of the container handled.
“Barring a significant escalation of conflict beyond the Middle East and a sharp reduction in economic growth in many major developed economies, the company is cautiously forecasting a low single-digit growth rate over the previous year,” Westports said.
However, it added that the prospects of stable or lower rates in the current year could provide some buffer to consumers’ containerised consumption.
In a statement, Westports executive chairman cum group managing director Datuk Ruben Emir Gnanalingam Abdullah said the Red Sea developments have a marked influence on container shipping, and its Asia-Europe trade lane experienced lower volume due to the initial adjustments as liners opted for the longer route around the Cape of Good Hope.
“During the first quarter, the terminal had some peaks and troughs in its utilisation because of disruption to shipping schedules and subsequent vessel bunching. However, the adverse effects should taper off once services have been regularised,” he added.
This year marks Westports’ 30th anniversary, and it has embarked on the Westports 2 expansion programme. To fund this project, the company has secured a RM5 billion sukuk wakalah programme.
Westports remains committed to maintaining Port Klang's position as a leading regional transhipment hub and Malaysia's premier gateway port. Sustainability is at the forefront for the building of the new facilities.
At Thursday’s noon break, Westports’ share price was four sen or 1% lower at RM3.87, bringing the group a market capitalisation of RM13.2 billion.