Bintulu Port 1Q net profit almost halved on lower revenue, higher costs

BINTULU Port Holdings Bhd net profit for the first quarter of 2023 (1Q23) sank by 45.26% to RM22.48 million from RM41.06 million a year ago due to lower operating revenue and higher finance costs.

During 1Q23, the group’s operating revenue decreased by 5.15% to RM187.89 million from RM198.11 million, primarily due to reduced cargo throughput for cargoes at Samalaju.

Bintulu Port announced a first interim single-tier dividend of 3 sen per share, payable on Aug 2, 2023.

In a separate statement, the port operator said LNG cargo throughput increased by 6.73% in 1Q.

Additionally, there was an increase in cargo throughput for clinker and urea in the dry bulk sector, with a growth of 54.11% and 52.25% respectively, driven by increased demand for imports from Vietnam to Sarawak and urea demand for the Philippines.

Bulking throughput saw a slight increase of 0.36% in 1Q23 compared to 1Q22. However, cargo handled at Samalaju decreased due to reduced production demand for manganese industries.

The main revenue contributor for Bintulu Port, LNG, experienced a 3.44% growth, reaching RM101.66 million from RM98.28 million.

On the other hand, non-LNG cargoes declined by 9.35% during the quarter.

Revenue from bulking facilities increased by 3.89% to RM10.17 million compared to 1Q22’s RM9.79 million.

Revenue generated from operations at Samalaju Industrial Port in the reviewed quarter amounted to RM32.43 million, a decrease from RM41.90 million in the corresponding period of the previous year.

The higher expenditure incurred during the quarter was primarily due to the recognition of finance costs related to the interim lease arrangement of land and facilities at Bintulu Port.

Looking ahead, it said that Malaysia’s trade growth for 2023 is expected to be moderate, considering the global economic growth prospects and weakening international trade momentum.

Nonetheless, the group remains optimistic and anticipates that LNG cargo handling will continue to be the main revenue driver, supported by palm oil and Samalaju cargoes. – TMR