News Content

Hutchison sees bright future, despite 51pc profit fall and 4pc less revenue

HONG KONG's big marine terminal operator Hutchison Port Holdings Trust posted a 51 per cent year-on-year decline in first half profits to HK$436 million (US$55.8 million), drawn on revenues of HK$5.72 million, down four per cent.

In year-to-date throughput the Singapore-listed HPH Trust's saw its deep-water ports increased their cargo volume five per cent against last year's result.

Combined throughput of Hongkong International Terminal (HIT), Cosco-HIT and Asia Container Terminal (ACT), collectively HPHT Kwai Tsing, increased throughput four per cent year on year. Shenzhen's Yantian International Container Terminal's (YICT) throughput increased four per cent.

"Riding on the back of solid economic activity and strengthening labour market in the US, outbound cargoes to the US extended its growth to the second quarter of 201," said the Hutchison statement accompanying the results.

"The European economy continues to show improvements which supported the uplift of outbound cargoes to Europe in the second quarter of 2017. Although the labour market and consumer sentiment have picked up, their sustainability will be the key for Europe's economic recovery," said the Hutchison statement.

"However, prolonged uncertainties surrounding policy and political development in the US present downside risks to the overall global and US economic growth in 2017," the company said.

Outbound cargoes to the US and EU grew faster rate in the second quarter of 2017. YICT's throughput growth in the first six months of 2017 was mainly attributed to the growth in US, EU and empties, said Hutchison.

The increase in HPHT Kwai Tsing's throughput was largely due to stronger transshipment cargoes.

Hutchison also said freight rates remain weak and shipping lines continue to drive down costs and improve efficiency through fleet rationalisation, deployment of mega-vessels and reformation of carrier alliances.

"Against this, HPH Trust is well positioned to be the preferred port of call given its natural deep-water channels and unparalleled mega vessel handling capabilities," said the statement.