Westports Q2 profit surges amid busy container operations

KUALA LUMPUR: Westports Holdings Bhd reported higher earnings in the second quarter on higher container volume.

"The company expects a single-digit container throughput growth for 2021," Westports said.

Net profit surged by almost a third to RM178mil from RM134mil a year ago. Revenue climbed to RM505mil from RM431mil previously.

Westports has declared an interim dividend of 8.5 sen a share.

On a six-month basis, the company reported total revenue of RM1.01bil, The container segment contributed most to the revenue as throughput volume increased by 11% to 5.3 million TEUs.

"Both the current and previous corresponding periods have some form of movement restrictions," Westports said in a statement today.

"Nevertheless, the improved throughput level of 11% over the previous corresponding period may reflect that the economy has made some adjustments to the new norms," it added.

Westports also saw an "active level" of container yard utilisation as the global supply chain remained stretched, with occasional port congestions at various terminals across the globe.

At the bottom line, after making a tax provision of RM122.9mil or an effective tax rate of 24.1%, the company reported a net profit of RM386.3mil, or 11.33 sen a share.

The Company has invested RM118.5mil in the first six-month of 202.

This includes for the purchase of additional terminal operating equipment and on-going work at a new jetty for the Liquid Bulk Terminal, as well as a new 19-acre container yard to support more extensive throughput requirements.