Higher tax, expenses eat into Bintulu Port’s 1Q net profit

Bintulu Port Holdings Bhd’s net profit for the first quarter ended March 31, 2020 (1QFY20) sank 21% year-on-year (y-o-y) as it incurred higher tax expense and spent more on maintenance and operational supplies, as well as staff cost.

Hence, its net profit for the three months fell to RM31.07 million from RM39.5 million, though revenue only saw a marginal decline of less than 1% to RM177.71 million from RM178.38 million. Consequently, earnings per share (EPS) declined to 6.75 sen from 8.59 sen, its stock exchange filing today showed.

Bintulu Port’s tax expense for the quarter rose to RM16.12 million from RM12.2 million a year ago, while staff cost increased to RM25.57 million from RM23.33 million. Its spending for maintenance and operation supplies was also higher at RM35.4 million versus RM31.28 million previously, while its cost of construction services rose to RM2.02 million from RM987,000.

“The expenditure during the quarter under review of RM138.36 million was higher by RM3.79 million, compared to 1QFY19’s RM134.57 million, mainly due to provision for maintenance dredging cost,” it said.

Notwithstanding the weaker quarterly earnings, the group declared a two sen first interim dividend for FY20, payable on Aug 10, half the four sen dividend it declared for the previous corresponding quarter.

The group said cargo handling and vessel calls for liquefied natural gas (LNG) will still be a main revenue contributor this year. However, based on its initial assessment of Covid-19’s impact on its business, it anticipated a reduction in palm oil volume due to the lockdown in India, lower palm oil yields and a slight demand reduction for LNG cargo.

“The group also expects a slower growth in dry bulk and break bulk cargoes, such as raw materials for Samalaju’s investors, fertilisers and construction materials. Even though container volume showed positive growth in 1QFY20 compared to 1QFY19, the group expects that container volume for the year is also subject to the logistic supply chain disruption due to the Covid-19 pandemic,” it added.

Shares in Bintulu Port closed 1.16% or five sen higher at RM4.35 today, giving it a market capitalisation of RM2 billion.
Source: The Edge Market

Leave A Reply

Your email address will not be published. Required fields are marked *