Malaysian port operator Bintulu Port Holdings expects a softer market in 2015, due to the seasonal and cyclical factors of the respective industries in the market.
Bintulu is Malaysia’s main LNG port.
“Nonetheless, LNG vessel calls and cargoes will still remain as the main revenue contributor to Bintulu Port and will help to cushion any cyclicality in the market,” said the company in its filing to the Bursa Malaysia.
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Bintulu Port has generated revenue of MYR133.6 million (USD35.4 million) for the first quarter of 2015, up 1.97% year-on-year from 1Q14. The increase was attributed to the earnings from LNG and dry bulk cargo, specifically bulk fertiliser and alumina.
Meanwhile, revenue from construction services for concession infrastructure of MYR65 million was recognised in 1Q15, and the corresponding costs were also recognised. The contribution relates to the port’s improvement project at Bintulu at around MYR5.2 million and the port’s development project at Samalaju at around MYR59.8 million.
Despite the higher revenue, Bintulu Port posted lower profit for the period at MYR35.5 million in 1Q15, down 14% y/y as compared to MYR41 million in 1Q14. The decrease was partly attributed to the company’s higher expenditure in 1Q15 of MYR90.7 million, up by 8% as compared to MYR83.2 million in 1Q14 mainly due to the amortisation of intangible assets and depreciation expenses recognised since the second half of 2014.
In addition, the board of Bintulu Port has recommended first single tier interim dividend of MYR0.06 per share on 460,000,000 ordinary shares, amounting to MYR27,600,000 in respect of the financial year ending 31 December 2015.