26-04-2017

HPH Trust Q1 profit off 70pc to US$21 million, but revenue loss falls 12pc

HPH

SINGAPORE-listed, but Hong Kong dollar-denominated, Hutchison Port Holdings Trust (HPH Trust) has declared a 70 per cent year-on-year decline in first quarter net profit to HK$166.9 million (US$21.4 million), drawn on a net revenue loss of HK$918.5 million, which narrowed 12 per cent from last year.

Quarterly throughput of HPH Trust's deep-water terminals was two per cent higher system wide over the corresponding period in 2016.

But at Shenzhen's Yantian International Container Terminal (YICT) volume fell one per cent year on year while combined throughput of Hong Kong's HIT, COSCO-HIT and ACT (collectively "HPHT Kwai Tsing") increased three per cent year on year.

Although outbound cargo to the US and EU grew in the first quarter of 2017, YICT's throughput overall declined compared to 2016 as it was adversely impacted by the decrease in empties and transshipments. 

The increase in HPHT Kwai Tsing's throughput was mainly attributed to stronger transshipment cargo.

Looking ahead, outbound cargo to the US continues to grow driven by the moderate expansion in economic activity in the States with the support of strong employment data, said the company statement. 

"However, there remains a high level of uncertainty over the domestic and global ramifications on the US economy and trade in 2017 as the new US administration commences the roll out of its fiscal policies and initiatives," said HPH Trust.

"The European economic activity is gaining momentum and outbound cargo to Europe showed a mild uplift in the first quarter of 2017. 

"Despite this, continued weak consumer sentiment and high unemployment rate are still plaguing the sustainability of Europe's economic recovery and the pickup of the European trade in 2017," the statement said.

"HPH Trust's performance is also impacted by the outcomes of the structural consolidation within the container shipping industry and the consequent rationalisation of services. The co-management arrangement signed in December 2016 has enabled more efficient use of the facilities and manpower resources," it said.

Source: Schednet

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