KUALA LUMPUR (April 27): Westports Holdings Bhd's net profit dropped 17.6% to RM140.89 million or 4.13 sen a share in the first quarter ended March 31, 2017 (1QFY17) from RM171.08 million or 5.02 sen a share a year ago, due to absence of one-off gain of RM20.4 million on disposal of investment in quoted shares recognised in 1QFY16.

In a filing with Bursa Malaysia, Westports said quarterly earnings were also dragged down by higher fuel cost during the current quarter under review.

However, quarterly revenue rose 12% to RM520.93 million, from RM464.71 million in 1QFY16.

Container throughput also increased by a marginal 1% to 2.43 million TEUs (20-foot equivalent units) in 1QFY17, from 2.41 million TEUs in 1QFY16, driven by both transhipment and indigenous boxes.

Conventional throughput for 1QFY17 rose higher by 8% to 2.8 million tonnes from the year-ago period, on higher liquid bulk cargo handled.

On prospects, Westports said due to changing market conditions, it is targeting to maintain similar container throughput for full year 2017 as achieved in 2016.

In a separate statement today, Westports chief executive officer Ruben Emir Gnanalingam said the realignment in the container shipping industry has resulted in a lesser number of clients, but significantly larger alliances.

"As these larger alliances optimise their network, services and also port of calls, they will also influence the total number of containers being handled by a particular terminal.

"The Ocean Alliance has adopted the dual hubbing approach for South East Asia and would be using Westports as one of its transhipment hubs, while The Allíance will also be having at least one service at Westports, going forward,” he added.

Meanwhile, Westports said the second phase of Container Terminal 8 (CT8), consisting of a 300m wharf and supporting terminal operating equipment and facilities, are on schedule to be operational by the middle of 2017.

The terminal's total handling capacity will then increase to 12.5 million TEUs per year by middle of 2017.

"We have commenced the first phase of CT9, consisting of 600m wharf with expected completion by December 2017," it added.

At 2.52pm, Westports shares were traded 2 sen or 0.5% lower at RM4.02, with 273,300 shares done. Its market capitalisation stood at RM13.71 billion.