Tariff hike, cost savings lift Hutchison Port earnings

Hutchison Port Holdings Trust (HPH Trust) yesterday reported second-quarter net profit jumped 8.5 per cent to HK$400 million, as its efforts to raise tariffs and cut costs bore fruit.

Singapore-listed HPH Trust, a subsidiary of Li Ka-shing-controlled Hutchison Port Holdings, saw revenue grow 2.1 per cent to HK$3.1 billion in the three months to June. Low fuel costs and operational savings helped trim service costs by 4.5 per cent and led to a 14.9 per cent jump in operating profit.

HPH Trust, a spin-off of Pearl River Delta assets from the world's largest container port operator, however, issued a caveat for the second half.

"Outbound cargoes to the US showed an upward trend while the decline in the EU has been more severe than originally anticipated," the company said in a statement to the Singapore stock exchange.

"Management remains cautious on the volume outlook for the remainder of the year given the depressed EU market and will continue to focus on improvements to tariffs and costs."

The average revenue per standard container rose 5.5 per cent year on year in its Hong Kong operations, thanks to a hike in handling fees charged to shipping lines. HPH Trust's Hong Kong division consists of four terminals under the flagship Hong Kong International Terminals (HIT) and two other terminals co-owned with Cosco Pacifc, a unit of China Ocean Shipping Group.