Kuala Lumpur, 9 November 2023
Westports Holdings Berhad (“Westports” or the “Company”) has announced its financial results for the 3rd Quarter of 2023, and the 9-month ended on 30 September 2023. At the top line for the nine months, the Company reported a total revenue achievement of RM1.60 billion, and the container segment contributed 87% to total revenue as Westports handled a throughput volume of 8.01 million TEUs.
The resilient economic activities in the region with favourable intra-Asia trade and the repositioning of container boxes have contributed to the Company’s overall performance. Meanwhile, the domestic economy developed further as export-oriented sectors benefited from increased competitiveness given the relatively stronger currencies abroad.
The normalisation of the global supply chain reduced the need for excessive container storage, thereby contributing to a flat total container revenue of RM1.35 billion. At the operating cost level, workforce cost by far is the most significant single cost component at 34%. Total operational workforce cost increased by 8% despite a lower headcount due to higher salaries, incentives and allowances paid to the Company’s staff.
There was a notable increase in electricity cost as the national utility company implemented the current Imbalance Cost Pass-Through (ICPT), which was significantly higher than the previous corresponding period. The other significant energy input is diesel for the terminal trucks and Rubber Tyred Gantry Cranes. The Company purchases diesel at an unsubsidised price. Overall, the total cost of sales increased to RM681 million.
At the bottom line, Westports reported a Profit After Tax of RM573 million, and much of the increase came from the absence of the one-year prosperity tax implemented in 2022 and partially from the reduced finance costs as the Company redeemed and reduced the total outstanding balance under the RM2.0 billion Sukuk Musharakah Medium Term Note Programme.
Datuk Ruben Emir Gnanalingam bin Abdullah, the Executive Chairman cum Group Managing Director of Westports, commented, “We have re-intensified our stakeholders engagement after previous years of pandemic-restricted mode of interaction. Together with the Ministry of Transport, we had productive sessions with some of our key clients abroad, while Westports also hosted more visits to the port by other terminal operators, customers and local stakeholders. These sessions have also, among others, facilitated the long-awaited container terminal expansion as the Government has now presented the proposal to the Cabinet. The Secretary-General of the Ministry of Transport will represent the Government in executing the Supplementary Privatisation Agreement with the Port Klang Authority and Westports Malaysia Sdn Bhd after the agreement has been reviewed and confirmed for execution by the Attorney- General’s Chambers. The proposed expansion of Container Terminals 10 to 17 will basically double the total container handling capacity of Westports and further strengthen the late Tan Sri Datuk Gnanalingam’s achievement of making Port Klang a mega transhipment hub and gateway port amid the busiest straits in the world. Westports’ accomplishments have been recognised as we won two awards again at the most recent 14th edition of The Edge Billion Ringgit Club Corporate Awards ceremony.”