KUALA LUMPUR (April 28): Westports Holdings Bhd’s net profit for the first quarter ended March 31, 2021 (1QFY21) rose 36.33% to RM208.32 million from RM152.80 million a year ago, it said in a bourse filing today.

The company attributed the better performance to progressive insurance reimbursement for an accident involving two quay cranes in 2019 and absence of general provisions amounting to RM33.4 million, as well as 5% higher container throughput of 2.66 million twenty-foot equivalent units (TEUs).

Its earnings per share rose to 6.11 sen from 4.48 sen in 1QFY20.

Revenue for the quarter rose by 7% to RM508.16 million from RM473.47 million in 1QFY20, mainly due to higher container throughout volume.

On a quarterly basis, its net profit also improved by 27.42% from RM163.49 million, thanks to higher container throughput volume and a one-off asset write-off in 4QFY20.

The higher net profit was despite the 6.16% decline in revenue from RM541.54 million.

“The above-average yard utilisation and yard congestion in the latter part of the previous year reaffirmed Westports’ supply-driven strategy in accommodating clients’ requests while also facilitating the growth of especially the Klang Valley’s hinterland economy,” said Westports group managing director Datuk Ruben Emir Gnanalingam Abdullah in a separate statement.

“Westports invested and completed container yard Zone Z at CT9 at a cost of RM81 million in 2020. By the end of 2021, we will complete an additional 19-acre Container Terminal Yard 8. In addition to these, the company is still investing in more terminal operating equipment and a new liquid bulk terminal jetty 5 to reinforce Port Klang as one of the main transhipment hubs in Southeast Asia for international container shipping alliances.

“The recent incident at Suez Canal brought to the forefront the reliance of global economies on a floating global supply chain. Hence, Westports is cognisant of its role and has planned to undertake and build the mega container terminal from CT10 to CT17 upon reaching a new concession agreement with the government.

“This is also a reflection of our ongoing commitment to strengthening the competitiveness of Port Klang in Southeast Asia as a transhipment hub,” he said.

On its outlook, Westports said it expects container throughput volume to grow by single-digit percentages this year.

It expects worldwide vaccination programmes to lead the way to the restoration of economic activities and consumer confidence, while fiscal stimulus packages promote economic activities in several countries.

“Nevertheless, the trajectory towards normalcy could still have some deviations due to different vaccination programme implementation speed, sporadic resurgences or lingering effects of the pandemic,” it cautioned.

As at 2.03pm, Westports was down four sen or 0.94% to RM4.20, valuing the company at RM14.32 billion.

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