KUALA LUMPUR (Jan 20): Westports Holdings Bhd’s net profit rose 5.46% to RM235.04 million for the fourth quarter ended Dec 31, 2022 (4QFY2022) from RM222.88 million a year earlier, due to investment tax allowance. 

As a result, earnings per share increased to 6.89 sen from 6.54 sen, the marine cargo handling company’s bourse filing showed on Friday. 

Westports’ revenue for the quarter under review inched up 3.42% to RM521.14 million against RM503.9 million a year ago.

The port operator declared a dividend of 7.46 sen per share totalling RM254.39 million to be paid on Feb 17. 

Its operational revenue was up by 4% to RM511.45 million from RM494.03 million, thanks to the growth in container revenue. In contrast, profit before tax declined 5% to RM251.27 million compared to RM265.16 million mainly due to higher fuel cost and write-off of old port equipment. 

For the full FY2022, Westports’ net profit was RM699.58 million, a decrease of 13.44% from RM808.22 million the prior year amid higher fuel cost, lower sundry income, and the one-off prosperity tax.

In contrast, FY2022 revenue advanced 2.33% to RM2.07 billion from RM2.02 billion, amid higher operational revenue attributed to the growth in container and conventional revenue. 

As the year ended, the container shipping’s spot freight rates normalised downward rapidly, being attuned to lower demand and much-abated supply chain constraints, the group said in a separate statement. 

“China also removed its zero-Covid policy, facilitating the resumption of its manufacturing capacity for the global economies.

“Against such a backdrop, Westports handled a container throughput of 10.05 million TEUs (twenty-foot equivalent units) in 2022. The lower transhipment containers handled of 6.08 million TEUs is a part-reflection of the challenging global external conditions and the consequent container shipping companies’ operational and service adjustments." 

Nonetheless, the company has declared its commitment to achieving net-zero carbon emissions by 2050, said Westports managing director Datuk Ruben Emir Gnanalingam Abdullah. 

“We took delivery of the country’s first Kalmar Eco Reachstacker, commissioned into service new electric-powered Super PostPanamax Quay Cranes with a twin-lift capacity of 55 tons, planted almost 500 additional trees within the terminal’s vicinity and some 550 additional mangrove trees in Pulau Indah,” he said. 

"We will continue to play our role as the leading gateway port for Malaysia and support her economic activities. To fulfil this objective even better in the coming years, the company has planned to undertake and build the mega Container Terminal from CT10 onwards after reaching a new concession agreement with the government. This is Westports’ financial commitment to improving the competitiveness of Port Klang in South East Asia also as a transhipment hub,” he added. 

At noon break on Friday, Westports share price was two sen or 0.53% higher at RM3.77, giving it a market value of RM12.86 billion.