SINGAPORE (July 19): Hutchison Port Holdings Trust (HPHT) has posted a DPU of 9.5 HK cents (1.66 cents) for 1H17 ended June, a 32% decrease from 14 HK cents in 1H16.
The port operator reported earnings of HK$436 million in 1H17, a 51.4% decline from HK$898 million in 1H16.
Revenue and other income fell 3.8% to HK$5.47 billion compared to HK$5.7 billion.
In addition, interest and other finance costs widened 16.6% to HK$403.9 million while shares of profits less losses after tax of associated companies swung to a loss of $54.1 million from a profit of $9.9 million a year ago
The manager of HPH Trust says container throughput at its terminals in Kwai Tsing increased 3.6% on higher transhipment cargoes, while container throughput in Yantian International Container Terminals increased 4.4% compared to the same period in 2016, driven by growth in US, EU and empty cargoes.
However, average revenue per TEU for Hong Kong and China were below last year mainly attributed to greater volume of concessions offered to certain liners in Hong Kong and the impact of RMB depreciation in China.
At the end of June, net cash and cash equivalents of HK$7.54 billion, an increase from HK$7.22 billion a year ago.
Looking forward, the group intends to ride on the solid economic activity and strengthening labour market in the US, as well as the improving European economy.
HPHT says that it is confident to deliver cost and operational synergies in 2017 as the roll-out of the co-management arrangement signed in December 2016 is progressing well and has enabled more efficient use of the facilities and manpower resources.
Although growth in the volume of global trade is expected to rebound in 2017, HPHT management says that it remains cautious and will maintain its rigorous cost control disciplines due to uncertainties in near-term economic and policy developments paired with continuance of structural changes in shipping line alliances.
Units in HPHT closed at 48 US cents on Wednesday.
