Major port operator battles “headwinds”

In a release from the company, Fock Siew Wah called last year “a year of constant change, beset by the headwinds of global economic and geopolitical uncertainty, escalating trade wars and persistent operational challenges in the shipping industry due to overcapacity, low freight rates and rising fuel costs”.

Net profit for PSA International for 2017 was S$1.23bn, whereas for 2018, this figure stood at S$1.21bn. The organisation put this partly down to greater depreciation.

Additionally, profit before taxation and net profit for the year (after tax) were both down 3.2%. Non-controlling interests were down 21.9%, and finance costs were up 28.9%.

However, the operator marked revenue growth of 3% in 2018, with revenue up from S$4bn in 2017 to S$4.1bn the year later. Profit from operations also marked a modest growth of 0.03%.

As for container volumes, PSA International handled 81m teu in 2018, a 9.1% hike year-on-year.

The company’s flagship terminals in Singapore contributed 36.3m teu, increasing 8.9% over 2017, while PSA terminals outside of Singapore generated a total throughput of 44.7m teu, increasing 9.3% over 2017.

Looking forward

Commenting on the 2018 results, Mr Fock said that going into this year, the outlook continues to be challenging because “the weakening world economy and prevailing protectionist sentiments will likely exact their toll on global trade.

“Nonetheless, PSA International will continue to invest in port and related facilities, nurture our people, expand our operational and digital capabilities and strive to innovate and improve supply chain-efficiency for all in collaboration with our stakeholders and partners,” he continued.

Meanwhile, Tan Chong Meng, the firm’s group chief executive, said that partners and clients have “worked alongside us to explore new logistics enhancements made possible by the adoption of digital technologies”.

“In charting our future ahead, while we continue to grow our port business, we will broaden our attention to other segments in the supply chain to create new cargo-flow solutions,” he said.

“We will also embrace digital technologies as a game-changer, co-creating the Internet of Logistics with like-minded partners.”

In related news, Mr Fock stood down as group chairman of the company on April 1. He is replaced by previous deputy chairman Peter Voser, a former Shell chief executive.