Westports declares 6.91 sen dividend as fuel costs drag 2Q profit by 8.8%

KUALA LUMPUR (July 28): Westports Holdings Bhd's net profit for the second quarter ended June 30, 2022 (2QFY22) slipped 8.81% to RM162.29 million, from RM177.97 million a year earlier, as higher fuel costs more than offset container revenue.

Quarterly earnings per share slipped to 4.76 sen, from 5.22 sen. Revenue rose 1.17% to RM510.98 million, from RM505.07 million, on higher container revenue.

For the first half ended June 30, 2022 (1HFY22), Westports' net profit fell 18.68% to RM314.15 million or 9.21 sen per share, from RM386.29 million or 11.33 sen per share, as the period was also hit by the prosperity tax and the absence of last year's RM20 million insurance reimbursements.

The port operator has approved a first interim dividend of 6.91 sen or RM235.63 million, down from 8.5 sen per share or RM289.85 million last year.

Revenue rose 1.39% to RM1.03 billion from RM1.01 billion, although the port saw a reduction in throughput volume to 4.88 million twenty-foot equivalent units (TEUs), from 5.3 million TEUs in 1HFY21.

“The previous year’s terminal congestion issue has been resolved,” it said in a separate statement. “In 2022, yard occupancy eased without local and significant regional lockdowns — these restrictions had hampered efficient container movements.”

However, the ongoing disruption to the supply chain, soaring inflation, zero-Covid policy in China and conflict in Europe are not conducive to global economic growth, it said.

“For Westports, the fast-evolving external backdrop makes it increasingly more challenging to maintain an identical container throughput volume in the current year,” Westports group managing director Datuk Ruben Emir Gnanalingam Abdullah said.

“However, the local economy is currently relatively less affected. Therefore, Westports will continue to play its role as the leading gateway port for Malaysia and support [the country's] economic activities,” he added.

Westports shares settled one sen or 0.28% higher at RM3.52 at the noon market break on Thursday (July 28), valuing the group at RM12 billion.