Hutchison Port Holdings Trust (HPHT) has declared a distribution per unit (DPU) of 8 HK cents (1.38 cents) in the 2HFY2021 ended December, 3.89% higher than the DPU of 7.70 HK cents in the same period the year before.
This brings HPHT’s FY2021 DPU to 14.50 HK cents, up 20.8% from FY2020’s DPU of 12 HK cents.
The FY2021 DPU stood higher than the guidance of 11-13 HK cents given previously, according to a report by DBS Group Research.
During the FY2021, HPHT reported a 110.1% y-o-y surge in earnings of HK$1.75 billion, from earnings of HK$831.4 million a year ago.
This translates to an earnings per unit (EPU) of 20.06 HK cents, compared to EPU of 9.54 HK cents.
FY2021 revenue grew 23.7% y-o-y to HK$13.24 billion.
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The trust’s combined container throughput of HIT, COSCO-HIT and ACT (which are collectively known as HPHT Kwai Tsing) was “comparable” but slightly lower y-o-y.
HIT refers to Terminals 4, 6 and 7, as well as two berths in Terminal 9 in Kwai Tsing, Hong Kong.
COSCO-HIT refers to Terminal 8 East in Kwai Tsing, Hong Kong.
The container throughput of Yantian International Container Terminals (YICT) in Yantian, Shenzhen in China grew by 6.1% y-o-y, primarily due to the increase in the US, EU and empty cargoes.
Average revenue per twenty-foot equivalent unit (TEU) for Hong Kong and China were higher y-o-y due mainly to higher storage income and RMB appreciation.
Total operating expenses increased 9.3% y-o-y to HK$7.87 billion in the FY2021. Cost of services rendered stood 25.4% y-o-y higher at HK$4.47 billion due to higher throughput, higher direct charges due to yard density, higher fuel price, the appreciation of the RMB and additional Covid-19 precaution costs.
Other operating income in FY2021 surged 116.3% y-o-y to HK$417.9 million due to the government subsidies, which were higher than that of FY2020’s.
As a result, FY2021 operating profit stood 53.4% higher y-o-y at HK$5.38 billion.
In the FY2021, HPHT recorded losses in its share of profits less losses after tax of associated companies of HK$81.5 million during this period, 2.3% better than the loss of HK$83.5 million in the FY2020, mainly due to the performance of Huizhou International Container Terminals (HICT).
Share of profits less losses after tax of joint ventures grew 57.5% y-o-y to HK$115.6 million mainly due to better combined results of COSCO-HIT and ACT driven by higher storage income and lower interest expenses.
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HPHT’s FY2021 profit before tax surged 75.7% y-o-y to HK$4.80 billion.
As at end-December, cash and cash equivalents stood at HK$11.05 billion.
Looking ahead, the trust expects the continued disruption to linger for “an extended period” in 2022.
In the markets, the impact for the higher Federal Fund Rate is expected to be “relatively small” for the trust, as over 80% of its debt has a fixed interest rate.
The trust adds that it is remaining steadfast in its commitment to reduce overall emissions by 5% from 2021 to 2026.
Unitholders will receive their distributions on March 25.
As at 1.43pm, units in HPHT are trading 2 US cents higher or 8.51% up at 25.5 US cents.
Photo: HPHT
