Hutchison Port Holdings Trust reports 2021 net profit more than doubled

Port facilities in Hong KongPort facilities in Hong Kong

Hutchison Port Holdings Trust (HPHT) reported Wednesday its profit attributable to unitholders jumped 110 percent on-year in 2021 to HK$1.75 billion, bolstered by higher government subsidies and a stronger yuan.

The trust also cited increased volume and effective cost controls. 

Revenue and other income for the 12 month period grew 23.7 percent on-year to HK$13.24 million, the trust said in a filing to SGX. 

The combined container throughput of the HPHT Kwai Tsing units was comparable, but slightly lower on-year, while the throughput of YICT rose 6.1 percent on-year in 2021, mainly on the increase in the U.S., EU and empty cargoes, the filing said.

For Hong Kong, the average revenue per twenty foot equivalent (TEU) was above 2020, mainly on higher storage income, while average revenue per TEU for China was higher on-year, largely on higher storage income and a stronger yuan appreciation, HPHT said. 

In addition, other operating income rose 116 percent on-year to HK$417.9 million in 2021, largely on higher government subsidies, HPHT said. 

The distribution per unit (DPU) was 8.0 Hong Kong cents for the July-to-December period, compared with 7.70 Hong Kong cents for the year-ago period, the filing said. 

Outlook

The trust issued a cautious outlook, noting the Omicron variant of Covid-19 has led to new precautionary measures, further straining the global supply chain. 

“Although the economy in the USA and Europe improved in the second half of 2021, disruption of the global supply chain worsened during the second half of 2021. Global port congestions induced delays in moving containers along the supply chain,” HPHT said. 

“Empty containers could not return to Asia ports in time for transporting export cargoes to the U.S. and Europe. The shortage of empty containers may exert future pressure on the global supply chain as manufacturing in China picks up after Chinese New Year,” the trust said. “Management anticipates the continued disruption will linger for an extended period in 2022.”