KUALA LUMPUR (Nov 27): Bintulu Port Holdings Bhd’s net profit for the third quarter ended Sept 30, 2017 (3QFY17) slipped 5.09% to RM34.74 million, from RM36.6 million a year ago, as operating expenses (opex) expanded by 28.13%.

Opex was recorded at RM63.55 million, compared with RM49.6 million in 3QFY16, amid rises in depreciation and amortisation (up 26.03%) and finance cost (up 18.32%),  Bintulu Port reported in its filing with Bursa Malaysia today.

“The increase in expenditure is on the service contract for handling of cargoes at the port and maintenance work to the port’s infrastructures and equipment and the bulking facilities.

“Samalaju Industrial Port Sdn Bhd has also recognised expenditure relating to amortisation of leased concession assets, amortisation of other concession infrastructures and equipment, as well as finance cost relating to the sukuk,” the filing said.

Earnings per share for the quarter stood at 7.55 sen, versus 7.96 sen a year ago.

Quarterly revenue climbed 28.72% to RM178.18 million, from RM138.43 million a year ago, mainly due to to revenue from liquefied natural gas (LNG), container, bulk fertiliser and base support services.

“There were 119 LNG vessels calling the port in 3QFY17, against 109 calls in 3QFY16,” Bintulu Port said.

The board recommended a five sen dividend amounting to RM23 million for its financial year ending Dec 31, 2017 (FY17), which will be paid on Dec 28. Its ex-date is on Dec 13 and entitlement date is on Dec 15.

For the cumulative nine months period (9MFY17), net profit inched up 2.3% to RM109.14 million, from RM106.68 million last year, on the back of RM493.55 million revenue, up 18.21% from RM417.5 million from 9MFY16.

Moving forward, Bintulu Port said encouraging growth from LNG vessel calls and cargo handling would continue to be the group’s main revenue contributor for FY17.

Other cargoes that would contribute to the year’s positive growth include bulk fertiliser, palm oil, palm kernel and containerised cargoes.

The filing said the revised tariff for LNG and non-LNG cargoes at the operation at Bintulu Port, will not be expected to be implemented in 2017.

Samalaju Industrial Port has commenced operation of Phase 1 from June 2017 and is also expected to contribute positively towards the group’s revenue growth.

However, it said the expenditure for amortisation of equipment, infrastructures and concession assets, and sukuk finance charges at Samalaju and direct operating expenditure on cargo handling, is expected to rise in FY17.

“Even though the expenditure is forecasted to be higher this year, there is a positive outlook on the LNG cargo and also on the deferment in the implementation of the revised tariff at Bintulu Port,” the filing added.

Its shares were not traded today. Bintulu Port last closed at RM5.77 on Friday, for a market capitalisation of RM2.76 billion.