Hutchison Port Holdings Trust (HPHT) has reported earnings of HK$716.3 million ($126.5 million) for the 1HFY2022 ended June, down 6.8% from earnings of HK$768.3 million for the same period the year before.
Earnings per unit similarly fell by 6.8% y-o-y to 8.22 HK cents.
Revenue for the 1HFY2022, however, increased by 8.0% y-o-y to HK$6.47 billion, but it was offset by the 17.2% y-o-y increase in total operating expenses of HK$4.02 billion.
As a result, operating profit for the half-year period fell by 4.3% y-o-y to HK$2.45 billion.
The increase in revenue was due to the higher average revenue per twenty-foot equivalent unit (TEU), which was mainly attributable to the higher storage income.
During the half-year period, the combined container throughput of terminals 4, 6, 7 and two berths in terminal 9 at Kwai Tsing in Hong Kong (collectively known as HIT), terminal 8 East at Kwai Tsing (COSCO-HIT) and terminal 8 West at Kwai Tsing (ACT) decreased by 7.4% y-o-y on the whole.
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HIT, COSCO-HIT and ACT are collectively known as HPHT Kwai Tsing.
The lower combined container throughput was due to lower local and transshipment cargoes.
On the other hand, Yantian International Container Terminals (YICT) saw container throughput increase by 6.7% y-o-y in 2022 primarily driven by the increase in the US and empty cargoes.
Cost of services during the period increased by 11.7% y-o-y to HK$2.16 billion due to the higher direct charges from the high yard density and increase in external contractors’ costs. The increase in costs was also due to higher fuel and electricity prices, the appreciation of the RMB and additional precaution costs due to the Covid-19 pandemic.
Staff costs also increased by 6.6% y-o-y to HK$133.0 million due to cost inflations and higher headcount.
Depreciation and amortization stood at HK$1.51 billion, compared to the same period the year before.
In the 1HFY2022, other operating income fell by 82.6% y-o-y to HK$67.8 million thanks to the lower dividend income from River Ports Economic Benefits and lower government subsidies from YICT.
For the period, HPHT announced an interim distribution per unit (DPU) of 6.50 HK cents (1.15 cents), unchanged from the same period the year before.
Amount distributable to unitholders also remained unchanged at HK$566.2 million for the 1HFY2022 ended June.
As at June 30, cash and cash equivalents stood at HK$11.44 billion.
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In its outlook statement, HPHT expects the high inflationary environment to bring about a reduction in orders from purchasing managers in the West.
The market is expecting export volumes from China to Europe and the US to “continuously come under pressure” in the remainder of 2022.
In addition, any hike in the US Federal Reserve’s federal funds rate is expected to be “relatively small” in terms of the impact on HPHT’s borrowing costs as over 86% of its debt have fixed interest rates.
As at 2.32pm, units in HPHT are trading 0.5 US cents higher or 2.08% up at 24.5 US cents.
