SINGAPORE (Apr 13): The trustee-manager of Hutchison Port Holdings Trust (HPHT) reported earnings for 1Q ended Feb fell 12.9% to HK$145.4 million ($24.3 million), or 1.67 HK cents per unit, from HK$166.9 million on higher depreciation, costs and interest expenses.
Revenue and other income grew 3.5% to HK$2.7 billion from HK$2.6 billion a year ago, due to higher combined container throughput on the increase in transshipment cargoes.
This was largely led by higher container throughput of YICT, driven by growth in empty and transshipment cargoes.
However, average revenue per twenty-foot equivalent unit (TEU) for Hong Kong and China were below last year, due to certain revisions to tariffs following the mergers and acquisitions (M&A) of some liners in 2H17.
In addition, China’s average revenue per TEU was also adversely impacted by unfavourable transshipment mix, but partially offset by RMB appreciation.
Cost of services grew 8% to HK$992.2 million from HK$918.5 million a year ago due to higher throughput handled, general cost inflations, including higher external contractors’ costs and fuel price and RMB appreciation.
Staff costs grew 2.8% to HK$77.1 million compared to a year ago.
Share of losses after tax of associated companies widened by 16.1% to HK$33.9 million due to higher depreciation and interest expenses of Huizhou International Container Terminals (HICT) as it became fully operational after its completion of construction in Oct 2017.
Share of profits after tax of joint ventures was HK$8.5 million, down by 50% from a year ago on the back of weaker combined results of COSCO-HIT and ACT – a result from lower revenue per TEU, which was largely attributed to certain revisions to tariffs following the M&A of some liners in 2H17.
In its outlook, HPHT’s trustee-manager highlights 2018 as a particularly transformative year for the global shipping lines industry, driven by shifting economic trends and trade flows in conjunction with the consolidation of ownership.
The trustee-manager says it remains cautiously optimistic, and will continue to build on the trust’s strengths while adhering to strict financial discipline.
“With a strategic transshipment hub in Hong Kong, the exemplary mega-vessel handling capabilities of YICT and our strategic investment in state-of-the-art equipment and facilities, HPHT is well positioned to support the changing requirement of the container shipping industry and maintain its reputation as the preferred gateways to the vast Pearl River hinterland,” it adds.
Units in HPHT closed 1.5% lower at 33 US cents on Friday.
