KUALA LUMPUR – Westports Holdings Bhd registered a lower net profit of RM151.85 million in the first quarter ended March 31, 2022 (Q1FY22) from RM208.32 million a year ago, mainly due to the one-off prosperity tax.
The port operator’s effective tax rate was 39% for the quarter, while the lower profit before tax of RM249 million was mainly attributable to the absence of non-recurrent insurance recoveries in the current quarter and the surge in fuel costs by 52%.
Revenue, however, was slightly higher at RM516.36 million from RM508.16 million, mainly attributed to the growth in container revenue, particularly value-added services.
In a statement today, Westport said the container segment contributed 88% to the revenue by handling a throughput volume of 2.39 million twenty-foot equivalent units (TEUs).
Group managing director Datuk Ruben Emir Gnanalingam Abdullah highlighted that without local lockdown and the marginally lower volume in Q1 2022, together with full access to the 52,455 container yard ground slots and 4,132 reefer sockets, the company has resolved all its prior-year container yard congestion issues.
However, external developments became more challenging as the quarter progressed.
“Military incursion, sanctions, inflationary pressures, and selected ports closure at various times in the Far East have collectively added to the ongoing supply chain challenges.
“The company experienced a 52% increase in fuel cost as our terminal operating equipment uses fuel input which is priced commercially and is not subsidised,” he said.
During the quarter, Westports handled transhipment and gateway container throughput of 1.42 million and 0.97 million TEUs, respectively.
It also handled bulk cargoes in the conventional segment amounting to 2.66 million metric tonnes. – Bernama, April 26, 2022
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