PETALING JAYA: Westports Holdings Bhd will undertake a prudent impairment or provision in the coming financial quarter due to its recent vessel-crane incident.
The group told Bursa Malaysia that the actual cost and damages have yet to be finalised.
“The detailed procedures and processes involving external and internal parties in determining the actual total cost, damages, recovery or reversal of provision would unlikely be completed by December 31, 2019.”
Nonetheless, Westports expects significant recovery from or reversal of provision made for this incident in the future years given that all the affected assets have insurance coverage and its wholly owned subsidiary Westports Malaysia Sdn Bhd has obtained an undertaking from the client’s insurer for the damaged assets.
This will then nullify the initial impairment or provision to an immaterial threshold level later, stressed Westports.
A vessel incident was reported last month involving a berthing container vessel making contact with two of its ship-to-shore cranes.
Westports noted that the initial length of the berth closure, which was in place earlier as a precautionary safety measure, has been reduced based on the latest assessed conditions of the two cranes.
“The company would also ascertain the repairs needed for the affected berth. This incident is not expected to have an overall, or material adverse impact on the container operations as terminal handling of containers at all the other berths continue as usual.”
Meanwhile, Westports said in a separate filing that year-to-date, it has handled a record-breaking 10 millionth Twenty-Foot Equivalent Units (TEUs) container.
“This achievement makes Westports as the first, and the only terminal in Malaysia that has handled 10 million TEUs in a calendar year. The 10 millionth TEU threshold was attained after the company’s container throughput increased by approximately 14% to 9.89 million TEUs during the 11-month period between January and November 2019.”
At the noon break, the stock gained 3 sen to RM4.18 on 934,300 shares done.