Westports’ net profit declines 6.9% in Q2 on lower container throughput, declares 6.37 sen dividend

PETALING JAYA: Westports Holdings Bhd saw a 6.9% drop in net profit to RM148.82 million for the second quarter ended June 30, 2017 against RM159.87 million in the same period a year ago, due to lower container throughput.

Its revenue also dropped 4.1% from RM522.63 million to RM501.44 million.

Westports has proposed to declared an interim dividend of 6.37 sen per share.

The group told Bursa Malaysia that its second-quarter container throughput was down by 11% to 2.23 million Twenty-foot Equivalent Units (TEUs) compared with 2.5 million TEUs recorded for the corresponding quarter last year.

Due to the ongoing changes in the container shipping industry, Westports expects its container throughput to be 7% to 12% lower in 2017 compared with 2016.

It noted that the second phase of Container Terminal 8, consisting of a 300-metre wharf and supporting terminal operating equipment and facilities, has just been completed and is expected to be operational soon.

"The total terminal handling capacity would then be increased to 12.5 million TEUs," it said.

Meanwhile, construction work continues at the first phase of Container Terminal 9, consisting of a 600-metre wharf. It is expected to be completed by December 2017.

Westports' first-half net profit declined 12.5% from RM330.95 million to RM289.71 million, on the back of a 3.5% rise in revenue from RM987.34 million to RM1.02 billion.

At 12.30pm, the counter fell two sen to RM3.65 on some 167,900 shares done, giving it a market capitalisation of RM12.45 billion.