HPH (Hutchison Port Holdings) Trust posted a nine per cent third quarter year-on-year net profit decline to HK$470.7 million (US$60.6 million), drawn on revenues of HK$3.4 billion, up two per cent.
The net profit decline was attributed to a substantial increase in taxation by the Singapore-listed, but Hong Kong-administered port operator.
Year to date, throughput of HPH Trust's deep-water ports was seven per cent above last year.
Total volume through Hongkong International Terminals (HIT), Cosco-HIT and Asia Container Terminals (ACT) grew six per cent "mainly due to the acquisition of ACT".
Shenzhen's Yantian International Container Terminal (YICT) throughput grew eight per cent year on year, said the company statement.
"Outbound cargo to the US showed an upward trend while that to the EU has slowed down. Throughput growth of YICT was mainly driven by transshipment and US cargo.
HIT's throughput growth was mainly due to higher transshipment volume, but offset by weaker intra-Asia cargo." said the HPH Trust statement.
Economic growth in the US and Europe is a major factor in determining the total volume of containers handled by HPH Trust, said the company.
"The US economy shows greater strength as its GDP expanded by 4.6 per cent in the second quarter of 2014. Unemployment in September fell to 5.9 per cent, the lowest since July 2008, said the company statement.
"Manufacturing activities and consumer sentiment also look promising and it is expected that the US economic outlook will remain positive," it said.
"Although the European Central Bank has launched a series of policies to shore up the flagging economy, the Eurozone is likely to maintain a low growth rate in the near future," the company said.
Outbound cargo to the US accelerated in the third quarter of 2014 and trended upward trend, but cargoes to the EU have begun to slow, HPH said.
Cargo volume for transshipment and the niche trade routes of Far East, Africa, Central and South America and Oceania is projected to increase moderately.
Citi research vice president Michael Beer expected good times for the company if it can exact tariff increases in Hong Kong "with half of its contracts up for renegotiation, leveraging its 56 per cent market share in the region".
WORLD SHIPPING
28 October 2014 - 18:01
Hutchison Port Holdings Trust posts 9pc profit decline, but revenue up 2pc
HPH (Hutchison Port Holdings) Trust posted a nine per cent third quarter year-on-year net profit decline to HK$470.7 million (US$60.6 million), drawn on revenues of HK$3.4 billion, up two per cent.
WORLD SHIPPING
28 October 2014 - 18:01
Hutchison Port Holdings Trust posts 9pc profit decline, but revenue up 2pc
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