KUCHING: Bintulu Port Holdings Bhd (BPHB) has reported sharply lower group net profit of RM22.5 million in first quarter ended March 1, 2023 (Q12023) as compared to RM41.1 million in Q12022 or down by RM18.6 million or 45 per cent.
The decreased earnings was in line with shrinking group revenue of RM187.9 million, down from RM198.1 million previously.
Earnings per share were down to 4.89 sen from 8.93 sen.
In the current quarter under review, BPHB said port operations generated lower revenue of RM178.2 million (Q12022: RM188.3 million) while the bulking services contributed higher turnover of RM10.2 million (RM9.79 million).
“The revenue recorded from port services at Bintulu Port is RM145.29 million in Q12023 as compared to RM146.42 million achieved in Q12022. The revenue generated from the operation at Samalaju Industrial Port during the quarter under review is RM32.43 million against RM41.9 million in the corresponding year quarter as the production demand for manganese industries decreased.
“Revenue from construction services for concession infrastructure of RM0.45 million was recognised in Q12023 while no revenue from construction services for concession infrastructure was recognised in Q12022,” BPHB said in its financials.
The port operations saw its pre-tax profit dipped to RM32.1 million (RM54.8 million) and bulking services to RM4.12 million (RM4.18 million).
“The revenue from port services and bulking services is subject to the seasonal and cyclical factors of their respective industries,” said BPHB.
The Q12023 financial results were weaker compared to immediate preceding quarter (Q42022) when BPHB posted operating revenue of RM200.9 million (Q12023: RM187.9 million) and pre-tax profit of RM47.5 million (RM31.6 million).
“Revenue contribution from the handling of cargoes and vessel calls at Bintulu Port in Q12023 was RM145.29 million as against RM148.7 million in Q42022.
“Revenue at Samalaju Industrial Port was lower by RM6.18 million from RM38.61 million in Q42022 to RM32.43 million in Q12023 due to port users having sufficient stock from previous quarter and slow market growth particularly in China.
“The revenue from the bulking services was lower by RM3.38 million from RM13.55 million in Q42022 to RM10.17 million in Q12023.”
On current year’s prospects, BPHB said Malaysia’s trade growth is expected to be moderate in 2023 in view of the softening of the global economic growth prospects and weakening of the international trade momentum.
“Despite this, the group remains positive and expects the handling of LNG cargo to remain the main revenue contributor to the group supported by the handling of palm oil and Samalaju cargoes,” it added.
Meanwhile, Sealink International Bhd has reduced its group net loss to RM7.5 million in Q12023 from RM8.8 million in Q12022 as group revenue more than doubled to RM18.2 million from RM7.48 million.
“The significant increase in revenue was mainly due to higher utilisation of vessels,” said the Miri-based company. In the current quarter under review, the ship charter division contributed RM17.8 million to group revenue (Q12022: RM7.24 million) while the shipbuilding division generated RM374,000 (RM237,000).
In the preceding quarter (Q42022), Sealink performed slighter better, with higher group revenue of RM20.3 million and lower pre-tax loss of RM7.17 million.
On prospects going forward, Sealink said the group is optimistic as it expects to achieve better financial results on the back of rising demand for its vessels.
“We are of the opinion that 2023 could be a bright year for the oil & gas (O&G) industry, by and large, mirroring the outlook that Petroliam Nasional Bhd (PETRONAS) has cast on the prospects of the sector.
“Based on the release of the PETRONAS Activity Outlook 2023-2025, the activity outlook for PETRONAS remains positive, in line with the continued recovery that we have seen throughout 2022. Specifically, PETRONAS mentioned that this is positive for activities relating to repair and maintenance activities required to maintain the integrity of offshore facilities. With this, the demand for offshore support vessels (OSVs) is expected to remain steady in 2023, especially for vessels supporting drilling and wells projects. It (PETRONAS) sees higher demand for OSVs in 2023-2025 compared with the previous forecast and this is an opportunity for us.
“We are confident that the demand for OSVs will continue to strengthen throughout this year. Just as encouraging as the acceleration in demand for OSVs is the continued reduction in the available supply of OSVs. The number of OSVs currently available is very limited, indicating that the supply of vessels will continue to decline gradually.
“Accordingly, it is our view that the industry is positioned to benefit from an increase in demand over medium to long term with a slowly shrinking supply of vessels. We believe this imbalance in supply and demand will continue to provide the opportunity for day rate and utilisation to increase,” added Sealink.
Sealink said the group’s term loans has been reduced by 11 per cent to about RM17 million from RM19 million in December 2022.
