In a filing with Bursa Malaysia today, the group said the increase in net profit was primarily attributed to the decrease in fuel expenses.
Group revenue was up 6.2% to RM542.64 million from RM510.98 million in Q2 FY2022, primarily boosted by a rise in container revenue.
For the six months ended June 30, 2023 (6M FY2023), the group reported a 20.48% surge in net profit, amounting to RM378.35 million, compared to RM314.15 million in the previous year.
This growth was supported by a revenue of RM1.06 billion, up 2.75% from RM1.03 billion recorded in the corresponding period.
The port operator declared a first interim dividend of 8.19 sen per share, amounting to RM279 million, to be paid on Aug 22 this year.
“Westports has practised a dividend payout ratio of 75% on its profit after tax since its public listing in 2013, and the company has been redistributing all the dividends it received.
“The only exception was in 2020, when the ratio was temporarily reduced to 60% due to prudent Covid-19 precautionary measures,” the filing read.
Cautious amid global uncertainty
The group is cautiously optimistic of its outlook for the rest of 2023.
While its intra-Asia operations are expected to contribute strongly to growth, Westports acknowledges there are potential risks arising from unfavourable inflation, interest rates, and consumer confidence which could dampen economic momentum in developed economies.
“The company’s container throughput volume in the current year could likely be in the single-digit growth range compared to the previous year,” it said.
“This guidance will be revised accordingly when material developments sufficiently affect the company’s expected volume trajectory,” it further stated.
In a separate statement, executive chairman and managing director Ruben Emir Gnanalingam Abdullah said the group will continue to thrive and build upon the efforts laid down by the group’s late founder G Gnanalingam, who was also his father.
“We had the privilege and lifelong contribution from Tan Sri Gnanalingam for starting, building and establishing Westports from what was essentially an undeveloped island to ultimately one of the biggest and most competitive mega transhipment hubs in Southeast Asia,” he said.
“As we peer to the long-term future, the container terminal expansion is also Westports’ financial and strategic commitment towards maintaining Port Klang’s overall competitiveness and as the preeminent gateway port for Malaysia,” he added, making a reference to the group’s planned terminal expansion.
As at 4.57pm, Westports’ share price rose 4 sen or 1.16% to RM3.49, giving the group a market capitalisation of RM11.9 billion.