Westports posts higher Q3 net profit as container volume rises

Westports CEO Ruben Emir Gnanalingam said the container shipping industry has just gone through an unprecedented recalibration and realignment processes which affected almost all major liners.

KUALA LUMPUR: Westports Holdings Bhd posted higher net profit of RM142.32mil in the third quarter ended Sept 30, 2018 (Q3 FY18) compared with the preceding quarter due to higher gross profit and lower finance cost.

It announced on Friday net profit rose by 17% from RM121.81mil in Q2 ended June 30, 2018 also due to higher pre-tax profit, revenue and as transhipment volumes recovered after five consecutive quarters of declines.

Westports' profit before tax increased by 13% to RM182.16mil from RM161.60mil mainly due to higher gross profit and lower finance cost for saving of commitment fee as cancelation of revolving credit facility from Bank of China and income earned from investment funds for Q3 FY8 compared to Q2 FY18,” it said.

Operational revenue rose by 6% to RM417.55mil in Q3 FY18 from RM394.03mil mainly due to growth in total container volume by 9%. 

“Overall container volume increased strongly by 14% over the previous corresponding period. Gateway volume’s momentum improved further from the previous quarter as it increased by 19% while transhipment improved by 12%,” it said.

Westports group managing director Datuk Ruben Emir Gnanalingam stated: “The company’s transhipment volume was adversely affected in the previous year, especially by the formation of new global alliances and mergers and acquisitions among the container shipping lines. 

“During Q3 FY18, after five consecutive quarters of declines, Westports has successfully and fully transitioned towards the new baseline as transhipment volume registered an improvement of 12% over the previous corresponding period.” 

“Gateway container volume remained strong by registering an overall 9-month growth of 20% as domestic economic growth remained favourable. The Intra-Asia segment showed sustained momentum with growth of 12%, increasing the trade lane’s contribution to Westports overall volume to 61%. 

“The favourable volume momentum during Q3 FY18 has finally nudged Westports overall container volume’s standing into a growth of 2% over the previous corresponding period as the company handled a total throughput of 6.95 million TEUs. The latter’s single-digit growth rate is in-line with the volume guidance provided by the company since the beginning of the year”. 

Q3 FY18 vs Q3 FY17