PETALING JAYA: Westports Holdings Bhd saw its net profit increase 11.9% to RM159.24 million for the third quarter ended September 30, 2019 against RM142.32 million in the previous corresponding period, due to a double-digit growth in container volume and the implementation of a container tariff hike that took effect on March 1, 2019.
The group’s revenue also grew 10.3% to RM460.43 million from RM417.55 million previously.
In the first nine months of the year, Westports’ net profit soared 20% to RM465.46 million from RM387.93 million in the same period a year ago, while revenue expanded 11.1% to RM1.33 billion from RM1.2 billion.
It handled 8.04 million twenty-foot equivalent unit (TEU) of containers during the period, an increase of 16% over the previous corresponding period, contributed by transhipment containers, which rose to 5.39 million TEUs while gateway volume expanded to 2.65 million TEUs.
The group is expecting to register a double-digit percentage growth rate in container throughput for 2019, according to its Bursa filing.
Westports managing director Datuk Ruben Emir Gnanalingam said the group has sustained its favourable container throughput growth momentum against a backdrop of moderate industry expansion rate due to strong support from its clients.
“The supportive growth at the Intra-Asia segment has also provided a broad-base momentum to enable Westports to attain its container volume growth of 16%, which is well above the industry’s average,” he said in a press statement.
Ruben noted that for vessels calls in 2019, the group has accommodated a greater proportion of ultra large container vessel (ULCV) at its berths, especially its newer wharves, as the liner industry deploys ever more and ever bigger container vessels.
“In order to support our clients’ growth and the industry’s trend of deploying ever ULCV, Westports is planning for a multi-billion container terminal expansion that would double our total terminal handling capacity,” he said.
He elaborated that the significant investments required for the expansion would be funded by Westports and financing raised from the capital market.
At the noon break, Wesports’ share price was unchanged at RM4.35 on 1.39 million shares done.
