SINGAPORE (Feb 12): Hutchison Port Holdings Trust (HPHT) reversed into losses attributable to unitholders of HK$12.1 billion ($2.1 billion), or HK138.97 cents, in 4Q18 compared to earnings of HK$0.24 billion in 4Q17.
During the quarter under review, the group had recognised non-cash impairment losses of HK$12.3 billion asset impairment assessment in view of the mounting global trade uncertainties, behavioural changes in multinational corporations caused by the current trade tensions, including accelerating the diversification of production bases outside of China and the effects stemming from the structural changes within the shipping line industry.
Revenue and other income for the 4Q18 quarter came in at nearly HK$3 billion, 5% above last year. Combined container throughput of Hongkong International Terminals (HIT), Cosco-HIT and ACT (Asia Container Terminals) -- collectively known as HPHT Kwai Tsing -- decreased 2.2%, primarily due to the decrease in Intra-Asia and transshipment cargoes. The container throughput of Yantian International Container Terminals (YICT) was 10.9% above last year, primarily driven by the increase in US, empty and transshipment cargoes.
The trustee-manager of HPHT said the surge in the US cargoes was driven by the frontloading of cargoes in anticipation of the 25% tariff implementation originally scheduled in January by the US to Chinese exports.
Average revenue per TEU for Hong Kong was above last year, mainly due to lower volume incentives to certain liners. For China, the average revenue per TEU was below last year, due to higher transshipment mix and Renminbi (RMB) depreciation.
Cost of services rendered was HK$1.13 billion, 1.5% above last year due to higher throughput and general cost inflations but partially offset by savings arising from cost control initiatives and RMB depreciation. Staff costs were HK$65.2 million, 7.4% below last year mainly due to lower headcount and RMB depreciation but partially offset by general cost inflations.
The trustee-manager has declared a DPU of 8.48 HK cents for the 2H period from July-Dec 2018, 24% lower compared to the DPU of 11.10 HK cents for the period from July-Dec 2017.
Units in HPHT closed 0.5 cent higher at 26 US cents on Tuesday.
