SINGAPORE listed, but Hong Kong controlled, Hutchison Port Trust (HPH), posted a 49 per cent decline in year-on-year first quarter net profit to HK$285.8 million (US$36.8 million), drawn on revenues of HK$2.94 billion - virtually unchanged from last year's first quarter.
Outbound cargoes to the US showed an upward trend while those to the EU remained weak, said a company statement accompanying the results.
Throughput growth of Shenzhen's Yantian International Container Terminals (YICT) was mainly driven by US cargo, transshipments and empties. Hongkong International Terminal (HIT) throughput was about the same as last year, it said.
Without the net gain of HK$243.8 million arising from the disposal of 60 per cent effective interest in Hong Kong's Asia Container Terminal (ACT) in 2014, year-to-date March 2015 net profit after tax was four per cent above last year due to higher profits from Shenzhen's YICT, but was partially offset by lower profits from Hong Kong's HIT.
Net profit attributable to unitholders was nine per cent below last year as HPH Trust has 100 per cent interest in HIT but only has 52-56 per cent interest in YICT.
"Growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust," said the statement.
US economic activities softened in the first quarter, possibly due to a combination of a harsh winter and a labour dispute at west coast ports, it said.
The American unemployment rate fell to a more than six-and-a-half-year low of 5.5 per cent in March 2015, but the job gains marked the smallest increase since December 2013.
Despite this, the fundamentals of US economy remain strong and it is expected that the economic activity will pick up in the second quarter, said HPH.
The Eurozone showed signs of recovery in early 2015. But high unemployment and fragile consumer sentiment continue to drag on recovery.
Outbound cargo to the US continues to display an upward trend, while cargo to the EU remains weak. Cargo volume for transshipment and the niche trade routes of Far East, Africa, Central and South America and Oceania is projected to increase moderately.
PORTS
29 April 2015 - 12:38
HPH Trust quarterly profit sinks 49pc to US$36.8 million as revenue flattens
SINGAPORE listed, but Hong Kong controlled, Hutchison Port Trust (HPH), posted a 49 per cent decline in year-on-year first quarter net profit to HK$285.8 million (US$36.8 million), drawn on revenues of HK$2.94 billion - virtually unchanged from last year's first quarter.
PORTS
29 April 2015 - 12:38
HPH Trust quarterly profit sinks 49pc to US$36.8 million as revenue flattens
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