Kuala Lumpur, 5 May 2023
Westports Holdings Berhad (“Westports” or the “Company”) has announced its financial
results for the 1st Quarter of 2023. At the top line, the Company reported a total revenue
achievement of RM513 million, and the container segment contributed 86% to total revenue
by handling a throughput volume of 2.55 million TEUs. As the global supply chain normalises
and container shipping schedule reliability improves, the requirement for container storage
eases, reducing the accompanying container storage revenue.
At the cost level, even without a higher headcount, manpower costs increased to incorporate
higher salaries and allowances paid to all staff. There was also a notable increase in electricity
cost as the national utility company implemented the current Imbalance Cost Pass-Through
(ICPT) effective from 1 January 2023, which increased from 3.7 sen to 20.0 sen per kWh.
These key factors contributed to a lower Profit Before Tax of RM237 million for the 1st Quarter
Datuk Ruben Emir Gnanalingam bin Abdullah (“Datuk Ruben”), the Group Managing Director
of Westports, reviewed, “Despite inflationary pressures and slowing economic momentum in
many economies, Westports handled more transhipment and gateway containers – the latter
amounted to 1.03 million TEUs, and it was the 2nd highest ever on a quarterly basis. The
domestic economy exhibited resilience as export-oriented sectors benefited from increased
competitiveness while certain segments have benefited from regionalisation and Foreign
Datuk Ruben added, “Intra-Asia has continued to underpin the Company’s throughput volume
as it constituted 63% of the total container volume handled. We also see more services being
added as we berthed more regional and relatively smaller vessels that service this region.
Meanwhile, our Conventional segment saw improved throughput as the Company caters to
growth in non-bunker-fuel and liquid storage requirements. The completed Liquid Bulk
Terminal 5 recorded active utilisation, so we have embarked on building Liquid Bulk Terminal
4A, scheduled to be completed by the end of 2023”.
“The one-year prosperity tax in 2022 provided a lower base in the previous corresponding
period, and as such, Westports is able to report an improved Profit After Tax of RM184 million
for the 1st Quarter of 2023 despite lower Profit Before Tax”.
“Moving forward, the Company expects an overall uptrend in decarbonisation cost as
Westports implement more initiatives to achieve its commitment to net-zero carbon emissions
by 2050. Westports took delivery of the country’s first Kalmar Eco Reachstacker last year and
has commissioned six new electric-powered Super Post-Panamax Quay Cranes into service
in the last few months – the latter replaced ageing and less efficient units. Westports is also
evaluating the operational suitability and commercial feasibility of using electric terminal
operating equipment at the port”.
Datuk Ruben concluded, “The proposed Westports container terminal expansion from CT10
to CT17 is being designed to incorporate the imperative of supporting the Company’s net-zero
carbon emissions aspirations by 2050 and also fulfilling the potential climate change
adaptation requirements. The proposed new terminals reflect Westports’ financial and
strategic commitment toward maintaining Port Klang’s overall competitiveness in South East
Asia as a transhipment hub”