HUTCHISON Port Holdings (HPH) Trust posted a distribution per unit (DPU) of HK$0.077 for the second half of its 2023 financial year ended Dec 31, 2023 – a 3.75 per cent decline from HK$0.08 a year ago.
Along with a DPU of HK$0.055 for the first half of its financial year, this brings its full-year DPU to HK$0.132, said the trust that operates container ports in a bourse filing on Wednesday (Feb 7).
Distribution income for the second half was HK$670.8 million (S$115.2 million), down from HK$696.9 million a year ago.
For the full year, distribution income was HK$1.1 billion, lower than HK$1.26 billion in 2022.
The distribution will be paid out on Mar 27, after books closure on Feb 15.
Its net profit for the full year was HK$233.5 million, a 79 per cent drop from the previous year, mainly due to the cessation of wage subsidies from the Hong Kong government.
Total revenue for the year fell by 13 per cent to HK$10.6 billion as container throughput at HPH Trust ports declined by 6 per cent compared to 2022.
The average revenue for each shipping container of twenty-foot equivalent unit for Hong Kong and China was below the previous year, due to lower storage income and the depreciation of the Chinese yuan.
Outbound cargoes to the United States dropped by 2 per cent, but those to the European Union (EU) increased by 6 per cent.
Despite the headwinds of inflation and elevated interest rates, HPH Trust noted that consumer spending recorded a year-on-year growth in the fourth quarter of 2023 as reflected from the holiday sales figures in the US.
“The momentum is expected to continue but at a slower pace. For the EU, as inflation continues to decline, retail sales is expected to grow moderately in 2024,” it said in its filing.
HPH Trust added that the ship attacks at the Red Sea could bring disruption to global trade and erratic shipping schedules due to the two-week delay of vessels arrival time.
This is because ships have had to re-route away from the Suez Canal or even cancel some vessel calls, which may have a negative impact on HPH Trust’s throughput volume in the first quarter of 2024.
“The disruption may also lead to pressure on Chinese exporters who could face an imbalance and shortage of empty containers. Market in general expects the Red Sea impact to be short-term, and port operators will unlikely benefit from the high storage income earned during the pandemic. HPH Trust will monitor the ongoing situation, stay agile to customers’ needs and focus on operational efficiency,” it added.
Units of HPH Trust closed flat at US$0.146 on Wednesday, before the announcement.
