HPH Trust’s profits inch up 2.9% YoY to $295.3m

Thanks to improved cost management.

Hutchison Port Holdings Trust (HPHT)’s improvements to cost management paid off as core net profit after tax attributable to unitholders for FY15 came in at around HK$1.61b, or about $295.3m, inching up 2.9% YoY from FY14’s HK$1.56b.

According to a report by OCBC, revenue was down 0.1% YoY to about HK$12.61b, bolstered by tariff increases over the year.

Meanwhile, throughput weakness at Hong Kong terminals persisted. Overall FY15 container throughput stayed flat, dipping 1.4% YoY. Combined throughput at Hong Kong International Terminals (HIT), COSCO-HIT Terminals (CHT), and Asia Container Terminals (ACT) dropped 6.4% YoY to 11.8m TEU. Compared to the 11.5% throughput volumes at the Yantian International Container Terminals (YICT) stayed robust, climbing 4.2% YoY to 12.2m TEU.

OCBC noted that the addition of mega-vessels to fleets, use of vessel-sharing schemes, and formation of shipping alliances are expected to weigh on HK throughput in 1H16 as port usage is rationalized.

Moreover, HPHT management has expressed that outbound cargoes to Europe are giving indications of a mild recovery but the current yuan devaluation has pushed Chinese exporters to put orders on hold until the situation stabilizes. OCBC estimates that with the subdued industry conditions, HPHT’s tariff hikes for the rest of its clients will likely average 3%.

Looking forward, HPHT’s performance is expected to wane for 1H16 as EU cargo trends recover slowly, and shipping line alliances lead to resource rationalization.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia