KUALA LUMPUR: Westports Holdings Bhd's net profit for the third quarter ended September 30, 2023 (3Q2023) was up 29.7 per cent to RM195 million mainly due to an increase in revenue, reduction in cost of sales and administrative expenses.
This was on four per cent higher revenue of RM542.3 million compared with a year ago.
Westports has handled a throughput volume of 8.01 million twenty-foot equivalent units (TEUs) this year.
"The company's container throughput volume in the current year would likely still be in the single digit growth range compared with the previous year, even though the volume recovery in recent quarters has been marginally better than initial expectations at the beginning of the current financial period," Westports said in its filing with Bursa Malaysia Securities Bhd.
In a press statement, Westports said the resilient economic activities in the region with favourable intra-Asia trade and the repositioning of container boxes contributed to the company's overall performance.
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.
"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," Westports executive chairman cum group managing director Datuk Ruben Emir Gnanalingam Abdullah said in the statement.
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 to pave the way for the expansion of Westports, after the agreement has been reviewed and confirmed for execution by the Attorney General's Chambers.
Westports received a letter from Port Klang Authority dated August 28, 2023 notifying it formally that the Cabinet has approved the proposed expansion of CT10 to CT17 on July 25, 2023.
According to Transport Minister Anthony Loke in March 2023, the entire Westports 2, as the expansion plans is called, will be on reclaimed land and almost nearing Carey Island, which is earmarked for the development of the third port, as announced during 2024 Budget.
"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 Gnanalingam's achievement of making Port Klang a mega transhipment hub and gateway port amid the busiest straits in the world," he added.
For the nine-month period, net profit was up to RM573.4 million, compared with RM464.5 million for the same period in financial year 2022 (FY2022), from an increase in revenue, and lower fuel cost and corporate tax.
Westports said the increase in its bottom line came from the absence of the one-year prosperity tax implemented in 2022 and partially from the reduced fiance costs as the company redeemed and reduced the total outstanding balance under the RM2.0 billion Sukuk Musharakah Medium Term Note Programme.
Revenue was also higher at RM1.6 billion, compared with RM1.5 billion for the same period in FY2022.