Shanghai port operator books 31pc net decline

PUBLISHED : Tuesday, 01 September, 2009, 12:00am
UPDATED : Tuesday, 01 September, 2009, 12:00am

Shanghai International Port Group (SIPG), the Shanghai-listed operator of the city's ports, said interim net profit declined 30.73 per cent to 1.71 billion yuan (HK$1.94 billion), while revenue fell 13.6 per cent to 7.9 billion yuan.

Shanghai is the world's busiest port in terms of tonnage and the second-busiest container port, behind Singapore.

'During the first half, our company was affected by the worsening conditions of the port and shipping sector, due to the heavy impact on China's imports and exports from the global financial crisis. The company recognises that the global recovery will be a gradual process,' SIPG said in an announcement on the Shanghai Stock Exchange website.

SIPG will proceed with infrastructure projects like the sixth phase of the Waigaoqiao port. The project has a planned total investment of 4.87 billion yuan, of which 1.59 billion yuan has been invested.

The sixth phase of the port is expected to start operations next year and will have an annual container throughput capacity of 2.1 million 20-foot equivalent units (TEUs) and 730,000 vehicles.

Also in the works is SIPG's international passenger terminal, with a budgeted total investment of 5.69 billion yuan, of which 80.3 per cent has been invested. The terminal is scheduled to be completed by the end of this year.

SIPG's container throughput fell 15.5 per cent to 11.67 million TEUs in the first half, while cargo throughput dropped 10.8 per cent to 169.53 million tonnes.

However, SIPG's performance improved in July, with container throughput totalling 2.15 million TEUs, up 6.7 per cent from June but down 8.8 per cent year on year. Cargo throughput was 32.23 million tonnes in July, a 4.2 per cent increase from June but a 1.5 per cent year-on-year decrease.

KGI Securities forecast container throughput would fall 6 to 8 per cent for the full year, with a 23.7 per cent drop in net profit to 3.52 billion yuan.