Bintulu Port’s 4QFY23 up 19 pct driven by pickup in cargo volumes
Bintulu Port Holdings Bhd’s (Bintulu Port) fourth quarter of the financial year 2023 (4QFY23) core net profit rose 19 per cent, quarter-on-quarter (qo-q), driven by a pick-up in cargo volumes from its key customers.
Bintulu Port’s core net profit jumped 19 per cent q-o-q while its revenue rose 16 per cent driven by recovery in both Bintulu Port (17 per cent) due to the recovery in LNG demand from China, and Samalaju Industrial Port (nine per cent) from a pick-up in cargo volumes from key customers Press Metal and OM Holdings.
“Its core net profit rose by a steeper 19 per cent on volume expansion at the high-margin Samalaju Industrial Port (compared with Bintulu Port) which fetched higher port tariffs (compared with Bintulu Port) and lower finance cost and effective tax rate under an interim lease arrangement (from January 2023 to December 2024) for Bintulu Port,” said the research team at Kenanga Investment Bank Bhd (Kenanga Research).
On a year-on-year (y-o-y) basis, the research team noted that Bintulu Port’s FY23 revenue fell three per cent due to a weak top line performance from Samalaju Industrial Port (-12 per cent), which it believed was due to weaker cargo volumes from key customers, Press Metal and OM Holdings.
Its LNG cargo volume also fell marginally as weaker demand from China, but was offset by the demand from Japan and South Korea.
On the other hand, the nonLNG segment (comprising dry bulk, break bulk, liquid bulk and containerised cargoes) fell eight per cent due to lower plantation throughput (the import of fertilisers, the export of palm products) and weaker inbound and outbound cargoes from heavy industries in Samalaju Industrial Park (the import of alumina, coal and coke, the export of aluminium and manganese). Its core net profit fell marginally on a lower tax.
On its prospects, Kenanga Research opined: “We acknowledge that the challenges in China economy at present will have a bearing on the demand for aluminium and manganese.
“However, we are starting to see a recovery in inbound and outbound cargo volumes from Samalaju Industrial Port key customers; Press Metal and OM Holding, in 2HFY23.
“We believe its key customers have an edge over their peers in the international market as their products have low-carbon footprint given the hydro power input.
“Also, as it stands today, Western countries still have outstanding sanctions on Russian aluminium (that makes up circa six per cent of world aluminium production) and hence will have to look for alternative sources of aluminium supply.”
Meanwhile, it highlighted that Bintulu Port Authority (BPA) is in the process of transferring its control from the Federal government to the Sarawak government.
“Concurrently, Bintulu Port is under an interim lease agreement until December 2024 pending the completion of the handover of BPA control,” it noted.