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HPH Trust plunges to $2.2bn 2014 net loss on impairment charges

HPH Trust plunges to $2.2bn 2014 net loss on impairment charges
Reflecting more woes ahead in Hong Kong, Hutchison Port Holdings (HPH) Trust took a HKD19bn ($2.5m) impairment charge on a unit in the city that dragged it into a net loss of HKD17.2bn for 2014.

Although revenue and other income for 2014 rose 2% to HKD12.6bn the impairment, recognised against goodwill allocated to a cash-generating unit in Hong Kong as it is adversely impacted by the uncertainties in the global economy and demand, the continuing challenging trading environment faced by the Hong Kong operations and challenging labour cost pressure, caused the bottomline to turn red, HPH said.

For the fourth quarter, net loss amounted to HKD18.6bn, from a HKD334.8m gain in the previous correspondeing period as the impairment's full effect was felt.Total throughput however rose 6% in 2014 to 24.2m teu from 22.8m in the previous corresponding period, Throughput HPH's Hong Kong terminals of HIT, COSCO-HIT and ACT grew by 5% to 12.6m teu while at Yantian International Container Terminal (YICT) in Shenzhen, throughput grew by a sharper 8% to 11.7m teu, driven mainly by transhipment volumes, US-bound shipments and empties.

Overall, outbound cargoes to the US showed an upward trend while that to the EU remained soft, In Hong Kong, HIT’s throughput growth was mainly due to higher transhipment volume but this was offset by weaker intra-Asia cargoes.

Looking ahead, HPH said, in addition to the upward trend in US cargoes continuing, it sees cargo volume for transshipment and the niche trade routes of Far East, Africa, Central and South America and Oceania as projected to increase moderately.