HPH Trust reports 6% fall in profits in first half

HUTCHISON Port Holdings Trust, the Singapore-listed trust that includes the top China port assets of HPH, posted a 6% year-on-year decline in after-tax profits to HK$1bn ($134m) in the first half, citing falling demand on US and European trade.

The trust said a fragile US recovery and austerity measures in Europe had dampened demand for consumer and manufacturing exports. But HPH Trust was sanguine about its ports’ trade with emerging markets.

“International transhipment, along with trade routes such as the Far East, the Middle East, Africa, Central and South America and Oceania continue to expand and are expected to outperform the US and Europe trades,” the trust said in a statement.

The health of these trades was reflected in a 5% year-on-year first-half growth in throughput to around 10.9m teu at the trust’s ports, which include Yantian International Container Terminals in Shenzhen, Hong Kong International Terminals and Cosco-HIT, a joint venture between Cosco Pacific and Hutchison also located in Hong Kong.

However, the total throughput figure was still 6% below HPH trust’s projected revenue figure for the first half of this year, which was 11.6m teu.

The trust’s revenues were down 7% to HK$5.9bn. Total operating expenses fell by 4% to HK$4bn.

Despite performing below its own expectations, HPH Trust issued a distribution per unit for the period from January 1 to June 30 of HK$0.24.

Shares in HPH Trust on the Singapore exchange were unchanged at S$0.78 ($0.62). They peaked at S$0.80 in March. The trust had its initial offering in March 2011 priced at S$1.00, but has traded below ever since.

HPH Trust also announced the early retirement of chief executive Hai Chi Yuet, 58, and the appointment of Gerry Lui Fai Yim, 53, in a move that was announced in May. Ms Hai will remain as an advisor to the trustee manager.