Westports Q2 volumes dip 11%, profits down 7%

Revenue fell to MYR501.4m from MYR522.6m previously as the group’s container throughput fell 11% to 2.23m teu in the quarter from the 2.50m teu moved in the corresponding quarter last year.

For the year-to-date, net profit fell to MYR289.7m from MYR331.0m previously while revenue was almost flat at MYR1.02bn, from MYR987.3m previously, Westports said in a stock market announcement.

Throughput for the first six months reached 4.7m teu with the intra-Asia segment comprising more than half of this while also growing 7%.

Westports said that the ongoing changes in the container shipping industry could see its container throughput being lower by between 7% and 12% compared with the previous year.

“The second phase of container terminal eight, consisting of a 300m 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 12.5m teu.

Meanwhile construction of the first phase of container terminal nine, consisting of a 600m 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,” Ruben added.

He said these factors would see a drop in container throughput for the year.