BUSINESS

Westports' Q3 net profit declines 24 pct due to higher fuel cost, prosperity tax

04/11/2022 02:58 PM

KUALA LUMPUR, Nov 4 (Bernama) -- Westports Holdings Bhd’s net profit for the third quarter ended Sept 30, 2022 (Q3 2022) slipped 24 per cent to RM150.39 million compared with RM199.06 million in the same quarter last year due to higher fuel cost and prosperity tax.

Revenue for Q3 2022 was up at RM520.54 million versus RM504.89 million previously.

For the cumulative nine months, net profit was RM464.54 million compared with RM585.35 million previously, while revenue stood at RM1.55 billion versus RM1.52 billion before.

“Westports achieved a profit before tax of RM692.67 million for the nine-month period of 2022. The lower profit, despite higher operating revenue, reflected the absence of non-recurrent insurance recoveries and the surge in fuel cost by 81 per cent,” it said in a filing with Bursa Malaysia.

“Westports purchases diesel at an unsubsidised price. At the bottom line, Westports reported a 21 per cent lower profit after tax as the company incorporated the one-year prosperity tax in 2022. Hence, the company’s effective tax rate is 33 per cent for the nine months of 2022,” it said.

As for revenue, it said the container segment contributed 86 per cent to total revenue by handling a throughput volume of 7.47 million twenty-foot equivalent units (TEUs).

The overall gateway volume increased by seven per cent to 2.95 million TEUs, with much growth during Q3 2022. In the conventional segment, the company moved 8.87 million tonnes of cargo, with a notable increase in break bulk, it said.

Group managing director Datuk Ruben Emir Gnanalingam Abdullah said that earlier this year, Westports took delivery of the country’s first Kalmar Eco Reachstacker – the new equipment that started paving the way towards reducing its environmental intensity footprint.

During the period under review, the company has just taken the delivery of three new Super Post-Panamax Quay Cranes with a twin-lift capacity of 55 tonnes. Weighing 1,100 tonnes each, the new electric-powered cranes have replaced the now-dismantled old cranes.

“They will undoubtedly increase our productivity and efficiency at the terminal, optimising our ability to provide top-notch service to our customers,” he said

“The disruption in the supply chain has eased. However, inflationary pressure, zero-Covid policy in the Far East, energy prices plus economic challenges in Europe and disrupted global wealth effects due to correcting markets are contributing to slower economic activities across many regions.

“The container throughput momentum in the current year could moderate downwards toward a marginal single-digit decline. However, the local economy is currently relatively less adversely affected.

“Therefore, Westports will continue to play our role as the leading gateway port for Malaysia and support its economic activities,” he added.

-- BERNAMA


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