Westports Holdings Berhad has announced its financial results for the 1st Quarter of 2022. At the top line, the Company reported total revenue of RM516 million. The container segment contributed 88% to the revenue by handling a throughput volume of 2.39 million TEUs.
The results incorporated its share of losses with the 50% investment in Port Klang Cruise Terminal Sdn Bhd, formerly known as Boustead Cruise Centre Sdn Bhd. At the bottom line, after making a tax provision of RM97 million or an effective tax rate of 39% due to the Prosperity Tax, the Company reported a lower Profit After Tax by 27% at RM152 million.
Datuk Ruben Emir Gnanalingam bin Abdullah, the Group Managing Director at Westports, highlighted that “Without local lockdown and the marginally lower volume in the 1st Quarter of 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 Datuk Ruben evaluated, “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. The recently completed new jetty, Liquid Bulk Terminal 5, accommodated its first Very Large Gas Carriers. The vessel discharged 8,500 metric tons of Liquefied Petroleum Gas (“LPG”) cargo to cool down and commence commissioning of the storage facilities.
Westport’s lower profit before tax of RM249 million was mainly attributable to the absence of non-recurrent insurance recoveries in the current quarter and also the surge in fuel cost by 52%. The reduction in profitability at this level was mainly due to the one-off prosperity tax in 2022. Hence, the Company’s effective tax rate is 39% for the quarter.
RAM Rating Services Berhad (“RAM”) has reaffirmed the long-term AAA/stable rating to Westports Malaysia Sdn Bhd’s (“WMSB”) RM2.0 billion Sukuk Musharakah Programme 2011/2031 in its recent annual review.
