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PETALING JAYA: Westports Holdings Bhd
expects its container throughput volume in the current year to still be in the single-digit growth range, compared to the previous year.
In a filing with Bursa Malaysia, the port operator said this is despite the volume recovery in recent quarters had been marginally better than initial expectations at the beginning of the current financial period.
Westport’s net profit for the third quarter ended Sept 30, 2023, increased to RM195mil compared with RM150.39mil in the same period last year.
Revenue rose to RM542.31mil from RM520.54mil, while earnings per share stood at 5.72 sen versus 4.41 sen previously.
The port operator attributed the higher revenue to a rise in container revenue, which contributed to the improved net profit, as well as a reduction in cost of sales and administrative expenses.
For the nine-month period ended Sept 30, 2023, Westport’s net profit grew to RM575.35mil against RM464.54mil in the same period last year, on the back of revenue rising to RM1.60bil from RM1.55bil previously.
Additionally, Westports said its container segment contributed 87% to total revenue, as it handled a throughput volume of 8.01 million twenty-foot equivalent units.
“The resilient economic activities in the region, with favourable intra-Asia trade and the repositioning of container boxes, have contributed to the company’s overall performance.
“Meanwhile, the domestic economy developed further as export-oriented sectors benefited from increased competitiveness, given the relatively stronger currencies abroad.”
Westports said the normalisation of the global supply chain reduced the need for excessive container storage, thereby contributing to a flat total container revenue of RM1.35bil.
“At the operating cost level, workforce cost by far is the most significant single cost component at 34%.
“Total operational workforce cost increased by 8% despite a lower headcount due to higher salaries, incentives and allowances paid to the company’s staff.”
Westports said there was a notable increase in electricity cost as the national utility company implemented the current imbalance cost pass-through, which was significantly higher than the previous corresponding period.
“The other significant energy input is diesel for the terminal trucks and rubber-tyred gantry cranes. The company purchases diesel at an unsubsidised price. Overall, the total cost of sales increased to RM681mil.”
Going forward, Westports said intra-Asia has provided baseline growth. “However, the upside is tempered with caution on inflationary pressures, higher interest rates and fluctuating foreign currencies.”
Additionally, the company said uncertain growth momentum in major developed economies may adversely affect regional economic growth momentum.
In a separate statement, Westports executive chairman and group managing director Datuk Ruben Emir Gnanalingam said the company had re-intensified its stakeholders engagement after previous years of pandemic-restricted mode of interaction.
“Together with the Transport Ministry, we had productive sessions with some of our key clients abroad, while Westports also hosted more visits to the port by other terminal operators, customers and local stakeholders.
“These sessions have also, among others, facilitated the long-awaited container terminal expansion as the government has now presented the proposal to the Cabinet.”
He also said the proposed expansion of container terminals 10 to 17 will basically double the total container handling capacity of Westports.
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