This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

Westports Holdings Bhd’s (KL:WPRTS) financial results for the first half of 2026 continue to show strength, setting the stage for its third consecutive year of record performance. This is despite heightened geopolitical tensions in the Middle East, which have increased risks to shipping through the Strait of Hormuz and added uncertainty to global trade and supply chain dynamics.

Westports reported a 51.4% rise in profit after tax (PAT) to RM687.4 million for the six months ended June 30, 2026 (1HFY2026), from RM454.1 million a year earlier, as it continued to benefit from tariff hikes and stronger revenue from value-added services (VAS). Revenue rose 34.4% year on year to RM1.8 billion from RM1.3 billion.

The government has approved a revised port tariff structure in three phases. Key container tariff items, particularly terminal handling charges, increased by an average of 15% in July 2025, followed by another average increase of 10% in January 2026. The final increase of 5% will be implemented in January 2027.

A Bloomberg consensus among analysts expects Westports to close FY2026 with a fresh record PAT of RM1.25 billion.

The group posted its highest-ever annual PAT of RM998.3 million in FY2025, an 11.2% increase from RM898 million in FY2024. PAT stood at RM779.4 million in FY2023, RM699.6 million in FY2022 and RM808.2 million in FY2021. It recorded a three-year compound annual growth rate (CAGR) of 15.7%.

The strong financial performance was supported by container throughput growth. It handled a record 11.3 million TEUs (20-foot equivalent units) in 2025, up from 11 million TEUs in 2024 and 10.9 million TEUs in 2023. Westports, which together with Northport makes up Port Klang, accounted for 75% of the market share.

Still, the group is cautious about its container throughput for 2026, expecting it to be roughly the same as the previous year, given the uncertainty associated with the war in Iran, trade policy developments, freight market volatility and cost pressures.

“Growth momentum could tread a fine balance between the resumption of growth and stifled impetus due to higher prices, thereby marginally affecting consumption propensity and governments’ fiscal positions. The regional transhipment volume could be influenced more by how shipping lines navigate this evolving landscape, as well as by regional supply chain and economic requirements,” it said when announcing its 1HFY2026 results on July 23.

Disruptions around key maritime chokepoints have increased transit uncertainty, prompting some shipping lines to reroute vessels, adjust sailing schedules and impose additional fuel- and security-related surcharges.

Westports also posted its highest return on equity (ROE) in three years in FY2025, achieving an ROE of 25% in 2025, up from 24.5% in 2024 and 22.9% in 2023. It reported an adjusted weighted average ROE of 24.4% over three years, the highest among its large-cap peers in the transport and logistics sector.

The stronger earnings have bolstered its adjusted share price, which rose from RM3.09 at end-March 2023 to RM3.46 a year later and RM4.53 by March 31, 2025. It surged further to RM5.93 on March 31, 2026 — the cut-off date for The Edge Billion Ringgit Club (BRC) Awards 2026.

This price movement translates into an adjusted return of 24.3% over the three-year evaluation period, earning Westports recognition as a top-performing company in the transport and logistics sector for delivering the highest returns to shareholders over three years.

As at Sept 1, 2026, the share price had climbed to RM6.97, giving the group a market capitalisation of RM23.95 billion. The average analyst price target is RM7.02, indicating broad confidence in a continued uptrend.

Since Westports became a publicly listed company in 2013, it has maintained a 75% dividend payout policy. FY2025’s first interim dividend of 9.93 sen, amounting to RM338.6 million, and second interim dividend of 11.92 sen, amounting to RM407.9 million, brought its total dividend payout to a new record of RM746.6 million. Since 2013, cumulative dividends paid to all shareholders have amounted to RM6.24 billion.

A regular winner at The Edge BRC Awards, Westports returned this year with three accolades in the transport and logistics sector — for the Highest ROE, the Highest growth in PAT and the Highest returns to shareholders over three years.

In a July 9 report, RHB Research said its earnings forecasts had already factored in a 30% increase in fuel costs from pre-Iran conflict levels. It is forecasting Westports’ core PAT to reach RM1.3 billion this year, underpinned by higher container charges and positive container throughput growth.

The research firm is expecting Westports’ fuel consumption to ease by about 10% in the fourth quarter of 2026 following the deployment of 60 electric trucks in the third quarter. It also pointed out that Westports is exempted from the monthly adjustments to electricity tariffs under the automatic fuel adjustment mechanism introduced by the Energy Commission in July 2025, barring any increase in electricity costs due to the US-Iran conflict.

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