KUALA LUMPUR: Westports Holdings Bhd
is keeping a cautious expectation of low single-digit growth in the current financial year due to the congestion in regional container ports.
"The impeded container terminal operational efficiency could emerge as a factor that influences the overall volume throughput," said the port operator in comments accompanying its latest result filing with Bursa Malaysia.
Westports reported a net profit of RM203.75mil in the second financial quarter ended June 30, 2024 (2QFY24), up from RM194.76mil in the previous corresponding quarter.
The group's revenue rose to RM552.99mil from RM542.64mil while basic earnings per share stood at 5.98 sen against 5.71 sen previously.
Over the cumulative six months period, Westports' net profit came to RM408.26mil compared to RM378.35mil in 1HFY23, while revenue was lifted to RM1.1bil from RM1.06bil in the comparative period.
The group declared a first interim dividend of 8.89 sen per share, going ex on Aug 9, 2024, and payable on Aug 21, 2024.
According to reports, Asian ports are feeling the impact of continuing tensions in the Middle East on the global supply chain.
In Malaysia, ships at key terminals are experiencing longer waiting times due to the re-routing of vessels to avoid attacks on the Red Sea, leading to bottlenecks.
However, executive chairman and group managing director of Westports Datuk Ruben Gananalingam Abdullah said in a press statement that the congestion has eased.
He added that the experience has highlighted the interconnectedness of Southeast Asia container shipping hubs, like Port Klang and Singapore. "It underscored the importance of having multiple ports to handle the growing regional trade as they work in tandem to ensure the resilience and reliability of the overall regional and global supply chains," he said.
During the first half of the year, Westports handled a higher container volume of 5.4 million twenty-foot equivalent units (TEU).
It said the intra-Asia regional trade underpinned Westports’ container volume growth as this trade lane accounted for 65% of the container handled.
In the conventional segment, the company handled bulk cargoes amounting to 5.68 million tonnes, with the greater throughput for project cargoes, ingots, coils, soybeans, and maise.
There was an 8% increase in Westports' operational cost during the period, excluding workforce and depreciation.
It noted that as it uses unsubsidised fuel for its terminal trucks and container yard cranes, the higher fuel cost was owing to fluctuations in international fuel prices and the ringgit/US$ exchange, and not the government's removal of the diesel subsidy.
