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PSA International sees 2015 profit drops 9.5%

PSA International sees 2015 profit drops 9.5%
Singapore’s PSA International has reported lower earnings in 2015 amid a challenging container shipping market hit by decreased demand and oversupply of capacity.

Net profit for 2015 was recorded at SGD1.27bn, down 9.5% compared to SGD1.4bn in 2014, according to PSA International.

Revenue for the global port operator fell by 6.7% year-on-year to SGD3.57bn as container volumes handled dropped.

PSA International moved 64.1m teu in 2015, representing a decrease of 2% from the previous year. PSA’s flagship Singapore terminals contributed 30.62m teu with a decline of 8.7% year-on-year, and PSA terminals outside Singapore delivered a total throughput of 33.48m teu, down 5% over 2014.

Fock Siew Wah, group chairman of PSA International, noted that the container shipping industry was not spared as it grappled with softening trade and demand, excess tonnage capacity and depressed freight rates.

Tan Chong Meng, group ceo of PSA International, commented: “These are difficult, uncertain times, but also challenging and exciting. In the last few years, we have witnessed the massive impact of rapidly changing mega liner alliances; the arrival of mega ships and port congestion around the globe due to the inadequacy of some berth facilities; protracted dips in crude oil prices; and a global economy that has lost much of its growth momentum resulting in anaemic trade flows.”

Tan continued: “The unprecedented pace of change is vexing the best minds in out industry and I am convinced that it will also shake up how industry players collaborate or compete in this dynamic environment.”