SINGAPORE (July 23): The trustee-manager of Hutchison Port Holdings Trust reported an interim DPU of 8.52 HK cents, 10.3% lower compared to the interim DPU of 9.50 cents a year ago as throughput of its ports fell 1%.
Earnings for the Jan-Jun period came in at HK$315.4 million ($54.8 million), 27.7% below last year. Revenue and other income for the period was 0.3% lower at HK$5.46 billion.
Hutchison Port Holdings Management (HPH Management) says the combined container throughput of HPHT Kwai Tsing decreased by 3.3% from a year ago, primarily due to lower transshipment cargoes.
The container throughput of Yantian International Container Terminals (YICT) increased by 1.8%, primarily driven by the growth in the US and transshipment cargoes, but was partially offset by decrease in empty cargoes.
Cost of services rendered was nearly HK$2 billion, 4.2% above last year. This was due to general cost inflations, including the increase in external contractors’ costs, fuel price and RMB appreciation but partially offset by savings arising from cost saving initiatives.
Staff costs were HK$150 million, 1.8% above last year. Depreciation and amortisation was HK$1.5 billion, 4.9% above last year mainly due to West Port Phase II being put into full operation in January.
Other operating expenses came in at HK$268.8 million, 3.2% below last year mainly due to savings in HIT’s rent and rates value and the receipt of government’s rent and rates refund.
In its outlook, HPH Management says it remains vigilant and cautious about expected cargo volume this year as global trade faces an almost unprecedented level of uncertainty, due to increasing trade tensions between the United States and both China and the European Union.
Units in HPH Trust closed at 28 US cents on Monday.
