Hindsight Master

BIPORT 2018Q4 net profit jumped 84% despite a higher base.

Hindsight Master
Publish date: Wed, 27 Feb 2019, 05:49 PM

 


 

BIPORT net profit jumped 84% despite a higher base.

1) Operating revenue for 2018Q4 increased 6% from 2017Q4, mainly from handling of general cargo and containers in both Bintulu Port and Samalaju Port. This kinda confirms LNG exportation from Bintulu Port has recovered and will normalise in 2019. Samalaju Port is now fully operational and its contribution is seen and will increase progressively in upcoming Quarters.
 

2) BIPORT’s net profit for 2018Q4 jumped 84% from 2017Q4, mainly from operations and other incomes from LAD imposed on certain work package and Government Grant relating to the work package. Excluding the other income, BIPORT still register an increase in net profit, which symbolise recovery of profitability.
 

3) Total Revenue of 2018Q4 (RM 211 Mil) is lower than 2017Q4 (RM 232 mil) due to the completion of Samalaju Phase 1 and hence less revenue from construction services (construction service will not contribute to earnings, so it is negligible).
 

4) Total revenue and net profit of 2018 is lower than 2017 due to breakdown in LNG pipeline in 2018Q3 and Q4, spike in 2018 Q4 symbolise recovery of LNG operation.
 

5) Despite decrease in total assets (mainly from lower intangible asset), BIPORT registered a higher shareholder equity value.
 

6) Long term and Short term borrowings has decreased substantially. with net cash position at -842 mil.
 

7) Manpower cost and direct operating expenses have increased slightly due to the full operation Phase 1 of Samalaju Port.
 

8) A 6 sen interm dividend is declared. A further special dividend is expected to be declared.
 

9) Moving forward with the receovery of LNG pipeline and progressive contribution of Samalaju Port, BIPORT is expected to prosper.
 

If you want to understand BIPORT business and development, kindly check out the video link below:
 

English:
https://www.youtube.com/watch?v=c2MDhQGHJ5I

Chinese:
https://www.youtube.com/watch?v=HwGiQUqXP8Y

Happy investing and Huat arr!

 

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