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Westports Q2 volumes fall by 11pc, profits down 7pc
MALAYSIA's Westports Holdings saw second quarter net profit fall 7 per cent to MYR148.8 million (US$34.7 million) from MYR159.9 million a year ago as a result of lower container throughput from structural changes in the wider industry.
Revenue fell to MYR501.4 million from MYR522.6 million previously as the group's container throughput fell 11 per cent to 2.23 million TEU in the quarter from the 2.50 million TEU moved in the corresponding quarter last year.
Year-to-date net profit fell to MYR289.7 million from MYR331 million previously while revenue was almost flat at MYR1.02 billion, from MYR987.3 million previously, Westports said in a stock market announcement as reported by Seatrade Maritime News of Colchester, UK.
Throughput for the first six months reached 4.7 million TEU with the intra-Asia segment comprising more than half of this while also growing 7 per cent.
Westports said that the ongoing changes in the container shipping industry could see its container throughput being lower by between 7 per cent and 12 per cent compared with the previous year.
"The second phase of container terminal eight, consisting of a 300-metre wharf and supporting terminal operating equipment and facilities, has just been completed and is expected to be commissioned into service soon," Westports added.
It noted that the total terminal handling capacity would then be increased to 12.5 million TEU.
Meanwhile construction of the first phase of container terminal nine, consisting of a 600-metre wharf, is continuing and is expected to be completed by December.
"The container shipping industry is going through an unprecedented recalibration and realignment process with the formation and transition towards new global alliances, as well as the recently completed and ongoing merger and acquisition (M&A) activities," CEO Ruben Emir Gnanalingam said.
"At Westports, we experienced the transition from the phasing-out of Ocean three services to the gradual phasing-in of Ocean Alliance services. We have also secured a service from THE Alliance. The industry's recent and ongoing M&As could also affect our container volume handled, especially of transhipment boxes, as the enlarged and merged entity may select to re-assess their service offerings and port of calls," Mr Ruben added.
He said these factors would see a drop in container throughput for the year.
Revenue fell to MYR501.4 million from MYR522.6 million previously as the group's container throughput fell 11 per cent to 2.23 million TEU in the quarter from the 2.50 million TEU moved in the corresponding quarter last year.
Year-to-date net profit fell to MYR289.7 million from MYR331 million previously while revenue was almost flat at MYR1.02 billion, from MYR987.3 million previously, Westports said in a stock market announcement as reported by Seatrade Maritime News of Colchester, UK.
Throughput for the first six months reached 4.7 million TEU with the intra-Asia segment comprising more than half of this while also growing 7 per cent.
Westports said that the ongoing changes in the container shipping industry could see its container throughput being lower by between 7 per cent and 12 per cent compared with the previous year.
"The second phase of container terminal eight, consisting of a 300-metre wharf and supporting terminal operating equipment and facilities, has just been completed and is expected to be commissioned into service soon," Westports added.
It noted that the total terminal handling capacity would then be increased to 12.5 million TEU.
Meanwhile construction of the first phase of container terminal nine, consisting of a 600-metre wharf, is continuing and is expected to be completed by December.
"The container shipping industry is going through an unprecedented recalibration and realignment process with the formation and transition towards new global alliances, as well as the recently completed and ongoing merger and acquisition (M&A) activities," CEO Ruben Emir Gnanalingam said.
"At Westports, we experienced the transition from the phasing-out of Ocean three services to the gradual phasing-in of Ocean Alliance services. We have also secured a service from THE Alliance. The industry's recent and ongoing M&As could also affect our container volume handled, especially of transhipment boxes, as the enlarged and merged entity may select to re-assess their service offerings and port of calls," Mr Ruben added.
He said these factors would see a drop in container throughput for the year.
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