SIMIC

SINGAPORE-LISTED Hutchison Port Holdings Trust (HPH Trust) has reported earnings of HKD1.10 billion (US$185.7 million) for the FY2022 ended December 31, 2022, down 37.1 per cent compared to the previous year.
In its earnings statement, the group said it experienced "challenging business conditions" in the second half of the financial year, reports Singapore's The Edge.
"There was a commencement of a significant decline in containers shipped from China to Europe and North America and a decline in China imports.
"The closed loop Covid-19 control arrangements at Yantian continued to pressure operating costs and cross border restrictions on trucking operations had an adverse effect on shipments through Hong Kong," according to a HPH Trust statement.
"Shipping lines have been adjusting services to reflect the changed conditions which have resulted in a reduction in service flexibility for the HPHT ports," it added.
Revenue and other income for the FY2022 fell by 8.1 per cent year on year to HKD12.17 billion as combined container throughput of HIT, Cosco-HIT and ACT (collectively known as HPHT Kwai Tsing), fell by 11.4 per cent compared to FY2021 mainly due to lower local and transshipment cargoes.
The lower revenue was also attributable to the lower container throughput of Yantian International Container Terminal (YICT), which fell by 4.2 per cent year on year. The decrease is primarily driven by the decrease in the US, EU and transshipment cargoes, but partially offset by higher empties.
The average revenue per TEU in Hong Kong was higher year on year mainly due to higher storage income. However, this was offset by the lower average revenue per TEU in China. The lower revenue was attributed to lower storage income and depreciation of the renminbi (CNY).
Other operating income plunged by 65.0 per cent year on year to HKD146.2 million due to lower government subsidies in the year before.
Accordingly, operating profit fell by 20.4 per cent year on year to HKD4.28 billion. Profit before tax fell by 24.9 per cent to HKD3.60 billion.
Looking ahead, the group is more positive for the FY2023 with the year seeing some "encouraging developments" with the relaxation of Covid-19 controls in China and the reopening of borders with Hong Kong.
"Apart from expected gradual improvements in international trade during the year, HPHT will benefit from the elimination of the closed loop arrangements at Yantian and an anticipated return of containers to Hong Kong as cross border trucking recovers," said the group.
That said, the current decline in international trade and possible recessions in Europe and the US have made it difficult for the group to provide a forecast for its business for the FY2023, the statement read.