KUALA LUMPUR (Jan 23): Westports Holdings Bhd (KL:WSPRTS) reported a record-high net profit of RM256.7 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), a 25% increase from RM206.1 million a year ago, driven by higher container revenue.

Earnings per share (EPS) for the quarter rose to 10.86 sen from 8.72 sen in 4QFY2023, according to the port operator's filing with Bursa Malaysia.

Quarterly revenue grew 22% to RM675.4 million, compared to RM554.1 million in the previous corresponding period.

The group declared a dividend of 10.86 sen per share, payable on Feb 21, bringing the full-year dividend to a record-high 19.75 sen per share, up from 16.91 sen last year.

For the full financial year ended Dec 31, 2024, Westports’ net profit rose 15% year-on-year (y-o-y) to RM898 million or 26.33 sen per share, compared to RM779.4 million or 22.86 sen per share in the previous year. Full-year revenue increased 9% y-o-y to RM2.34 billion from RM2.15 billion.

The FY2024's results represented the best bottom line and top line for Westports since its listing on Bursa Malaysia in 2013.

In a separate statement, Westports said that it handled a record 10.98 million twenty-foot equivalent units (TEUs) of containers in 2024, including a new high of 4.91 million TEUs in import-export container volume, which supports domestic economic activities.

On a monthly basis, the group also achieved a record 1.01 million TEUs handled in December.

Additionally, Westports’ conventional segment managed 12.19 million metric tonnes of bulk cargo, driven by higher volumes of project cargo, steel products, and steel ingots.

As a result, alongside upwardly revised rates, Westports will make a record payment of RM110.51 million to the local port authority.

Looking ahead, the group expects Intra-Asia to remain its primary container volume contributor but forecasts low single-digit container volume growth for the next financial period.

This projection reflects ongoing Middle East tensions, a localised focus by the new US administration, and slow growth momentum in developed countries.

Westports also plans to expand its container terminals from CT10 to CT17, effectively doubling its capacity from 14 million to 28 million TEUs annually.

The total capital expenditure for existing facilities and new terminals through 2082 is projected to reach RM39.6 billion.

Funding for this expansion will come from a RM5 billion sukuk wakalah, as well as from internally generated funds, and a proposed five-year dividend reinvestment plan (DRP).

Separately, Westports announced a slew of boardroom changes, including the redesignation of Ruben Emir Gnanalingam as executive chairman, and the appointment of Lee Mun Tat as group managing director.

Lee, 53, is currently the chief executive officer of Westports Malaysia Sdn Bhd (WMSB), a wholly owned subsidiary of Westports. He has also served as Westports' acting chief financial officer since January 2020.

Following his appointment as group managing director, Lee will relinquish his roles as CEO of WMSB, and as acting CFO. These positions will be taken over by Vijaya Kumar Puspowanam and Megat Amirul Zameer, respectively.

All boardroom changes will take effect on Feb 1.

“Since the passing of the late founder Tan Sri Datuk G Gnanalingam, I have temporarily assumed the role of executive chairman, in addition to my position as the group managing director," said Ruben Emir.

He emphasised the importance of upholding good corporate governance by separating the chairmanship and executive roles. Ruben expressed confidence that the boardroom changes will strengthen the management team and maintain the group's high standards of corporate governance.

At the time of writing on Thursday, Westports’ shares were traded six sen or 1.4% higher at RM4.45, valuing it at RM15.2 billion.