Westports says long-term growth intact, posts higher 1Q net profit of RM222.46mil

KUALA LUMPUR: Commenting on the impact of the tariffs situation, Westports Holdings Bhd executive chairman Datuk Ruben Emir Gnanalingam said the interim uncertainties and adjustment may put a pause on containerised trade growth.

However, a "new equilibrium, Asia’s economic dynamism and Malaysia’s commitment towards multilateral trade will reestablish a new baseline for sustained future long-term growth", he said in comments accompanying the port operator's latest earnings announcement.

In light of this, Ruben affirmed the  expansion efforts of the container terminal at Westports 2 will continue towards completion by 2028.

"We anticipate higher demand for terminal handling facilities by the time we commission CT10 into service," he added.

In the first quarter ended March 31, 2025 (1QFY25), Westports registered a net profit of RM222.46mil, up from RM204.51mil in the year-ago quarter, translating to an earnings per share of 6.52 sen against six sen previously.

The port company achieved a quarterly revenue of RM621.3mil with a container volume of 2.69 million TEUs - underpinned by intra-Asia regional trade, which accounted for 63% of the volume. This compares with revenue of RM543.15mil achieved a year ago in 1QFY24.

According to Westport's report, the conventional segment handled and facilitated a throughput of 2.95 million tonnes of bulk cargo, with a notable increase in liquid bulk activities such as palm oil-related

products, liquefied petroleum gas and bunker.

The company, which maintains round-the-clock operations with a total staff strength of 5,600, saw operational workforce cost rise 7%.

Meanwhile, the fuel cost of the company's unsubsidised diesel had the biggest percentage decline as it benefited from lower international oil prices.

Westports also noted it had increased payments to the port authority under the extended supplemental privatisation agreement, which commenced on Sept 1, 2024.

"The cash flows statement reflected higher service concession-related obligations such as amortisation, finance costs and lease being paid for port infrastructure and facilities," it said.