Westports Holdings Bhd has reported a revenue of RM1.67 billion for its third quarter ended Sept 30, 2024 (3Q24), and a net profit of RM641 million for the first nine months of 2024.
During the period under review, Westports handled a higher container volume of 8.11 million twenty-foot equivalent units (TEUs) and the intra-Asia regional trade underpinned Westports' container volume growth as this trade lane accounted for 66% of the container handled.
In the conventional segment, the company handled bulk cargoes amounting to 9.02 million metric tonnes, which supports the domestic economic activities as the greater throughput was for project cargoes, steel products, soybeans, maise, clinker/slag and fertiliser.
The company's almost 5,600 workforce is its most significant cost item, as operational workforce costs increased to RM217 million and this cost is expected to increased further when the company upgrades the benefits for its staff once an upward revision in minimum salary is implemented, although the company has been paying above the minimum wage.
Meanwhile, although fuel is the third-largest operational cost component for the company, it did not have any financial impact on the company as Westports uses unsubsidised diesel for its terminal trucks and container yard cranes and it purchases the fuel in US dollars based on prices published by Platts.
However, the company's total borrowings in 3Q24 have increased to RM1.08 billion compared to the previous period as its wholly owned subsidiary had a recent drawdown of RM355 million to facilitate the purchase of Marina Land where the latter is to support the company's Westports 2 Container Terminal Expansion.
"Two pieces of land, with total and related costs of more than RM600 million, will be transferred to the Port Klang Authority at no cost to the regulator, as agreed under the concession agreement with the government," Westports said, adding that the company has commenced the Westports 2 Container Terminal Expansion from CT10 to CT17, with a projected initial development total cost of RM12.6 billion.
Westports Executive Chairman and Group Managing Director Datuk Ruben Emir Gnanalingam Abdullah said Westports 2 will double the current 14 million TEUs handling yard capacity to 28 million TEUs.
"Westports is committed and will invest and maintain Port Klang as one of the region's biggest and most competitive mega-transhipment hubs and Malaysia's premier gateway shipping port," he added.
