Westports posts higher revenue for FY23

JAYA: Westports Holdings Bhd is cautiously forecasting a low single-digit growth rate in container volume for this year, barring escalation of conflict beyond the Middle East and a sharp slowdown of economic growth in major developed economies.

In addition, the port operator said the likelihood of stable or lower interest rates in 2024 could act as a buffer to consumer consumption.

Westports executive chairman and group managing director Datuk Ruben Emir Gnanalingam said the group will embark on its Westports 2 expansion programme this year.

Westports registered record container volume of 10.88 million twenty-foot equivalent units (TEU) in its fourth quarter ended Dec 31, 2023 (4Q23) and the 8% growth in container volume was supported by its empty-boxes repositioning and improved gateway volume, arising from more industries and companies operating in Malaysia.

Westports’ operations was also supported by the resilient regional economic activity and intra-asia commerce, which currently accounts for 65% of the containers it handles.

Additionally, the group facilitated cumulative movement of three million units of vehicles and equipment from roll-on/rolloff (Roro) vessels in December 2023.

Westports reported total revenue of Rm2.15bil for financial year 2023, a 4% jump year-on-year (y-o-y) due to growth in container and marine revenue.

Net profit rose 11% y-o-y to Rm779.43mil or earnings per share (EPS) of 22.86 sen helped by higher revenue, lower fuel costs as well as lower corporate tax.

On a quarterly basis, Westports revenue for 4Q23 totalled Rm554.06mil, up 6% y-oy, while earnings fell 12% y-o-y to Rm206.08mil or EPS of 6.04 sen.