SINGAPORE-LISTED Hutchison Port Trust Holdings (HPH Trust) has announced that attributable net profit fell 44.9 per cent from HKD1.7 billion (US$219 million) to HKD944.2 million last year compared to 2016.
Revenue for the year ending 31 December 2017 slipped 3 per cent to HKD11.91 billion to HKD11.55 billion.
The trustee-manager said it remains "cautiously optimistic" about the expected cargo volume this year.
"Major liners have announced plans to continue to invest and build more mega-vessels of up to 22,000 TEU, and this potential excess capacity will likely put pressure on freight rates and, as a result, keep port tariffs in check," it said.
At the same time, HPH Trust announced a 38.4 per cent drop in fourth-quarter earnings amid a weaker revenue and losses from associated companies.
It said attributable net profit came in at HKD237.8 million for the three months ended December 31 last year, down from HKD385.8 million from the same period a year earlier, according to Singapore's Business Times.
During the quarter, revenue dipped 3.4 per cent to HKD2.86 billion. The combined container throughput of Hongkong International Terminals, Cosco-HIT and Asia Container Terminals - collectively known as HPHT Kwai Tsing - inched up 0.9 per cent due to higher transshipment cargoes, although it was offset by weaker intra-Asia cargoes, the trust manager said in its earnings report.
Container throughput of Yantian International Container Terminals in Shenzhen, China, which comprises Yantian International, expanded by 10.6 per cent, driven by growth in the US and transshipment cargoes.
Average revenue per TEU for Hong Kong and China fell, given that there was a greater volume of concessions offered to certain liners, as well as certain revisions on tariffs following the mergers and acquisitions of some liners.
In addition, China's average revenue per TEU was also adversely impacted by higher transshipment mix, but partially offset by appreciation in the Chinese yuan.
Source: SchednetPrevious Next