Westports posts stronger 3Q net profit of RM159.2m

Westports group managing director Datuk Ruben Emir Gnanalingam said Westports was expecting to achieve a “double-digit percentage growth rate” over 2018.

KUALA LUMPUR: Westports Holdings Bhd net profit rose for the third quarter ended Sept 30,2019 by 11.9% to RM159.23mil underpinned by higher container volume handled and stable reported cost of sales under the new Malaysian Financial Reporting Standards 16 (MFRS 16).

It announced on Tuesday its net profit rose from RM142.32mil a year ago. Profit Before Tax increased to RM211mil from RM182.16mil. Its revenue increased by 10.2% to RM460.43mil from RM417.55mil. Earnings per share were 4.67 sen.

Westports achieved another consecutive record-breaking container throughput level in 3Q by handling 2.77 million twenty-foot equivalent units (TEUs).

In the nine months ended Sept 30,2019, its net profit rose by 19.9% to RM465.45mil from RM387.93mil in the previous corresponding period. Its revenue increased by 11.2% to RM1.33bil from RM1.196bil.

The volume of TEUs increased by 16% over the previous corresponding period to 8.04 million TEUs.

Westports group managing director Datuk Ruben Emir Gnanalingam said: “Westports has sustained its favourable container throughput growth momentum against a backdrop of moderate industry expansion rate due to strong support from its clients, including liners under the Ocean Alliance as the latter uses Westports as one of their transhipment hubs in South East Asia.

“The supportive growth at the Intra-Asia segment has also provided a broad-base momentum to enable the company to attain its container volume growth of 16%, which is well above the industry’s average, ” he said.

Ruben said for vessel calls in 2019, Westports had accommodated a greater proportion of ultra large container vessels (ULCV) at its berths, especially its newer wharves that have been built in recent years, as the liner industry deploys ever more and ever bigger container vessels.

He also said Westports was expecting to achieve a “double-digit percentage growth rate” over 2018.

He also said to support Westports' clients’ growth and the industry’s trend of deploying ever larger ULCV, Westports was planning for a multi-billion container terminal expansion that would double its total terminal handling capacity.

“The significant investments required would be funded by Westports and financings raised from the capital markets.

“Westports expanded facilities would also further strengthen Port Klang’s role as the pre-eminent port for the nation’s gateway trade and also reinforce our terminal as one of the main transhipment hubs in the South East Asia region for international container shipping alliances, ” he said.

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