KUALA LUMPUR: Westports Holdings Bhd posted a 10.8 per cent higher net profit of RM654 million for the year ended December 31 2020, after providing RM211 million tax or an effective corporate tax rate of 24 per cent.
Group revenue rose 10.7 per cent to RM1.97 billion due to higher revenue from the container segment and construction activities.
For the fourth quarter (Q4), Westports' net profit increased 30 per cent to RM163.49 million from RM125.44 million a year ago.
The company said its revenue increased 19.6 per cent to RM541.54 million in Q4 against RM452.82 million previously, mainly attributed to the growth in container value-added services as well as the increase in restow volume.
"(The full-year revenue) is due to higher revenue from the container segment and also construction activities arising from development work on the new liquid bulk jetty and CT9's new Container Yard Zone Z," it said.
Group managing director Datuk Ruben Emir Gnanalingam said Westports was thankful to the government agencies, including the Ministry of Health, Ministry of Transport and Port Klang Authority, for collaborating and guiding it through an unprecedented year.
Ruben said as an essential service to the nation, their input ensured uninterrupted operations of its port.
"In a year that witnessed businesses experiencing operational and financial challenges, Westports has worked with the authorities and our clients to offer reductions in certain fees and charges.
"The company also implemented Covid-19 precautionary measures, and there has been a minimal number of cases that have affected the employees of Westports," he added.
He said the above-average container yard utilisation and yard congestion in Q4 had not only affected Westports but also ports across the globe.
He said the global supply chain was adjusting to a combination of factors, such as higher consumer demand for containerised goods in Western economies, lockdowns in various parts of the world at different points in time and a global supply chain partly manned by people implementing Covid-19 precautionary measures.
"The direct and secondary long-tail effects of Covid-19 will continue to be felt in 2021 despite the gradual ramp-up in vaccinations. This will have a redistributive effect on society.
He said the surge in container throughput in Q2 and strong demand for container yard space in Q4 reinforced the need for Westports to undertake the planned mega Container Terminal expansion from CT10 to CT17, upon reaching a new concession agreement with the government.
"In 2020, Westports invested and completed container yard Zone Z at CT9 at the cost of RM81 million. We have also converted a common yard area to become a container yard."