KUALA LUMPUR (April 25): Westports Holdings Bhd saw its net profit dip 12.1% to RM123.8 million in the first quarter ended March 31, 2018 (1QFY18) from RM140.89 million a year ago, due to higher depreciation and finance cost in the current quarter under review.

This resulted in a lower earnings per share of 3.63 sen in 1QFY18 compared with 4.13 sen in 1QFY17. Quarterly revenue also dropped 26.1% to RM385.09 million from RM520.93 million a year ago.

In a statement today, Westports said it recorded a container throughput of 2.25 million TEUs (20-foot equivalent units) in 1QFY18, down 7.4% from 2.43 million TEUs in 1QFY17. 

“The 1QFY18 results reflected the residual impact from the unprecedented realignment within the container shipping industry in 2017. Even though the container volume is lower when compared to the corresponding period, both indigenous and transhipment volume, however, showed improvement when compared with the preceding quarter in 2017," said Westports group managing director Datuk Ruben Emir Gnanalingam.

He noted that Westports is now accommodating and handling the newest ultra-large container vessels (ULCV).

"We have made significant investments of more than RM2 billion in recent years to enhance our container terminal facilities and equipment to be able to handle these ULCVs. The capability to accommodate them, as the container shipping industry takes delivery of ever more ULCVs, will strengthen Westports as the pre-eminent port for the nation’s gateway trade while also being one of the main transhipment hubs in the region,” he added.

Container throughput for 1QFY18 was driven by indigenous boxes, which grew by 25% year-on-year.

"Container volume at the intra-Asia trade lane continued to register favourable growth. This trade lane constituted 61% of Westports' total container throughput in 1QFY18," said Westports.

"Transhipment volume has also improved when compared with the preceding quarter to 1.48 million TEUs," it added.

On prospects, Westports said its container throughput is expected to register modest growth rate of low single-digit percentage this year.

At 2.35pm, Westports shares were down 3 sen or 0.89% at RM3.33, with 556,100 shares done, bringing a market capitalisation of RM11.36 billion.