HPH Trust posts weaker profit for first quarter

HUTCHISON Port Holdings Trust, the port giant mired in Hong Kong’s largest industrial action in decades, has posted a weaker year-on-year profit for the first quarter amid flat volumes and higher expenses.

The Singapore-listed trustee-manager recorded an after-tax profit of HK$642m ($82.7m) for the three months, down 6.5% from HK$686.7m a year ago.

When including the throughput of Asia Container Terminals, which it acquired in early March, total volumes amounted to around 5.3m teu in the first quarter, similar to last year’s level.

Throughput at Hongkong International Terminals, its main subsidiary, fell 7.4% on-year, due to weaker than expected transhipment and exports to Europe.

However, container volumes at Yantian International Container Terminals rose 6.3%, due to more transhipment and movements of empty boxes, and to cargoes to and from emerging economies.

According to HPH Trust, the average revenue per teu for Hong Kong was “about the same” as last year, but that for China was lower, due to a change in tax regime.

Total revenue for the three months amounted to HK$2.9bn, 1.1% up on-year.

However, total operating expenses rose 3.8% to HK$2bn, mainly due to acquisition fees relating to the ACT deal.

Some 400 port workers employed by HIT contractors have gone on strike since March 28, over demand for a wage hike.

The negotiation has been prolonged, despite intervention from the Hong Kong government.

“Their actions have disrupted normal terminal operations at HIT,” the trustee-manager said. “While the dispute has not been resolved, terminal operations are gradually returning to normal.”