Westports posts lower profit, revenue on accounting changes

PETALING JAYA: Westports Holdings Bhd reported lower profit and revenue for its first quarter ended March 2018 due to accounting changes from the adoption of new accounting rules.

The port operator reported a net profit of RM123.8mil for its first quarter, a 12% drop from RM140.9mil posted in the same quarter last year.

Revenue was 26% lower at RM385.1mil from 520.9mil previously.

Pre-tax profit was at RM182.8mil for the quarter, a drop of 6% from RM194.7mil last year.

Westports said in a statement the drop in revenue was mainly attributed to the adoption of Malaysian Financial Reporting Standards 15 from Jan 1, 2018.

It said the reduction in pre-tax profit was due to higher depreciation and finance cost.

It said the customs department had issued several bills of demand totalling RM59.5mil and is appealing a settlement process.

Westports said its container operations remained the most significant revenue contributor at 84%.

It said the container operations handled 2.25 million 20-ft equivalent units (TEUs) in the first quarter. The Intra-Asia segment now constituted 61% of the total containers handled, and that trade lane saw a favourable increase of 12%.

“Westports continued to facilitate and support domestic economic activities as the gateway volume improved strongly by 25% in the first quarter.

“Transhipment volume has also improved when compared with the preceding quarter to 1.48 million TEUs,” it said.

Group managing director Datuk Ruben Emir Gnanalingam said the first-quarter results reflected the residual impact from the unprecedented realignment within the container shipping industry in 2017.

He said although the container volume is lower compared to the previous corresponding period, both the gateway and transhipment volume, however, showed improvement when compared with the preceding quarter in 2017.

“Under Day 2 of Ocean Alliance in its second year of operations, Westports is now accommodating and handling the newest ultra-large container vessels (ULCV).

“CMA CGM’s newest, largest and flagship container vessel – the CMA CGM Antoine de Saint Exupery – with a carrying capacity of 20,600 TEUs, made its maiden call at Westports on April 17,” he said.

Ruben added that on April 20, Evergreen’s newest and largest container vessel – Ever Golden – on its westbound service to North Europe, also called at Westports.

“We have made significant investments of more than RM2bil in recent years to enhance our container terminal facilities and equipment to be able to handle these ULCV,” he said.