[SINGAPORE] Temasek-owned port operator PSA International on Friday (Mar 28) reported a 25.2 per cent drop in net profit to S$1.1 billion in 2024, from S$1.5 billion the year before.
This came as operating profit fell 3.7 per cent to S$1.2 billion, on the back of increased operating costs and inflation, said PSA in a press statement.
There was also a non-cash impairment charge on intangible assets due to a weaker economic outlook against its carrying value, it said.
Revenue, on the other hand, rose 8.9 per cent to S$7.7 billion in 2024, from S$7.1 billion the previous year. The increase was mainly driven by higher throughput from port operations, as well as more ocean and air exports from its supply chain business, said PSA.
In the year, PSA handled 100.2 million shipping containers, known in the industry as twenty-foot equivalent units (TEUs). This was a 5.6 per cent growth from a year prior, and a historic milestone for the group, said Ong Kim Pong, PSA group chief executive officer.
Of this, its Singapore operations contributed 40.9 million TEUs, while PSA terminals outside the Republic delivered a total throughput of 59.2 million TEUs – a 5.5 per cent and 5.7 per cent increase, respectively, from the previous year.
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PSA said its balance sheet remained strong, with a gross debt equity ratio of 0.5 times at the end of its financial year.
Peter Voser, PSA group chairman, noted that 2024 was a year of “measured recovery” due to the confluence of geopolitical and trade tensions, ongoing conflicts, volatile interest rates, fiscal and inflationary pressures, and extreme climate changes.
These exacerbated ongoing global supply chain disruptions, affecting key markets and businesses, said Voser.
It also highlighted the need for PSA to invest further in infrastructure, innovation and partnerships to strengthen its resilience and capabilities, he said, adding: “We will endeavour to continue working closely with our stakeholders across the group’s portfolio of ports, supply chain solutions, marine and digital businesses to help shape a more sustainable world.”
