Westports 2Q16 earnings rose by 31 per cent to RM159.87 million
KUCHING: Westports Holdings Bhd’s ( Westports) earnings for the second quarter of 2016 (2Q16) ended June 2016 rose by 31 per cent year- on-year (y- o-y) to RM159.87 million from RM122.09 million recorded for 2Q15.
The port operator in a filing to Bursa Malaysia yesterday said 2Q16 revenue gained by 29 per cent y- o-y to RM522.63 million from RM405.28 million registered for 2Q15.
At the same time, Westports said revenue for the first half of 2016 (1H16) ended June 2016 expanded by 23 per cent y- o-y to RM987.34 million while net profit for 1H16 jumped by 37 per cent yo-y to RM330.95 million.
Meanwhi le, Westports in a statement yesterday said it achieved another milestone by handling a record throughput volume of 4.9 million TEUs in 1H16.
Westports highlighted that the volume of containers it handled has shown an improvement of 11 per cent driven by transhipment containers – the act of offloading a container from one ship and loading it onto another ship to be further carried to the final port of discharge.
Add it iona l ly, Westpor ts disclosed that its transhipment containers increased to 3.6 million TEUs while the group handled 1.3 million TEUs of gateway containers.
Westports continued to facilitate domestic manufacturing and economic activities as laden export containers increased by five per cent while Westports total volume constituted about 76 per cent of Port Klang’s total container throughput in 1H16.
Moreover, Westports said the conventional throughput in 1H16 was 5.5 million tonnes as the port handled items such as wheat, soy, sugar, steel products and project cargoes for domestic consumption and economic activities.
“Liquid bulk operations improved its throughput by 18 per cent with contribution from bunker operations,” it said.
“Apart from that Westports also revealed that its Container Terminal 8 (CT8) Phase 1 with 300-metre wharf has commenced operations.
“Four new units of 52-metre high ship-to- shore cranes and six units of new Rubber Tyred Gantry cranes have already been commissioned into service.”
On top of that, Westports’ operational revenue improved by 15 per cent to RM885 million for six months ended June 2016 as compared with the corresponding period in the preceding year with improved contributions especially from the container operations.
Commenting on the latest financial results, chief executive off icer ( CEO) Ruben Emir Gnanalingam said, “Our 1H16 volume has been very encouraging and resilient given the modest regional economic growth during the period as we achieved another milestone by handling our highest ever interim container volume of 4.9 million TEUs.
“Westports also benefited from accommodating our shipping cl ients’ ad- hoc hand l i ng requirements as they introduced larger vessels into their existing container shipping services.”
“There will be realignment in the container shipping industry next year as key liners in existing container shipping alliances form new and different alliances next year.
“As a terminal operator, Westports will continue to support our shipping clients’ regional transhipment requirements with cost competitive, world- class productivity level of services and also expanding container terminal facilities.”
The group’s Phase 1 of CT8 expansion with 300- metre of wharf has commenced operations with the additional of four units of new state-of-the-art 52-metre high ship-to-shore cranes and six units of energy- efficient Rubber Tyred Gantry cranes.
The entire CT8 expansion will cost a total of RM1.1 billion and when completed, would raise Westports’ total container terminal handl ing capacity to 13.5 million TEUs with an extended contiguous linear berth of 5.2 kilometers, thereby allowing the group to also support requirements of new and larger shipping alliances from 2017 onwards,” he revealed.