KUALA LUMPUR (July 27): Westports Holdings Bhd's net profit for the second quarter ended June 30, 2023 rose 20% to RM194.76 million from RM162.29 million a year earlier, due mainly to the reduction in fuel cost.

In a bourse filing on Thursday (July 27), the port operator said revenue for the quarter rose to RM542.64 million from RM510.98 million previously, driven by an increase in container revenue.

Earnings per share was 5.71 sen versus 4.76 sen previously.

Westports declared a first interim dividend of 8.19 sen per share, to be paid on Aug 22.

For the six months ended June 30, Westports said net profit increased 20.48% to RM378.50 million from RM314.15 million a year earlier on the back of revenue of RM1.06 billion against RM1.03 billion previously.

On its prospects, Westports said Intra-Asia provided the baseline growth, which is tempered with caution as unfavourable inflation, interest rates, and consumer confidence could adversely affect economic momentum in developed economies.

“The company’s container throughput volume in the current year could likely be in the single-digit growth range compared to the previous year.

“This guidance will be revised accordingly when material developments sufficiently affect the company’s expected volume trajectory,” it said.

In a separate statement, Westports executive chairman cum group managing director Datuk Ruben Emir Gnanalingam Abdullah said expanding the container terminal would also create better long-term opportunities for Pulau Indah residents and beyond.

“Morningstar Sustainalytics, an independent environmental, social and governance (ESG) and corporate governance research firm, has evaluated that the operations of Westports sustain more than 16,000 jobs and have a yearly gross domestic product impact of about RM1.6 billion.

“As we peer to the long-term future, the container terminal expansion is also Westports’ financial and strategic commitment toward maintaining Port Klang's overall competitiveness and as the pre-eminent gateway port for Malaysia,” he said.

At the midday break, Westports added 0.58% or two sen to RM3.47 with 665,200 shares traded.