Hutchison Port Holdings profit off 4pc to US$953 million,N revenues up 4pc

Mar.4--HUTCHISON Port Holdings, a subsidiary of Hong Kong's Hutchison Whampoa, posted a four per cent year-on-year drop in operating profit to HK$7.4 billion (US$953 million) in 2013, drawn on revenues of HK$34.1 billion, up four per cent.

"The [port] division is expected to grow volumes during the year and will continue to focus on productivity gains, cost efficiency and selective acquisition to achieve earnings growth," said the company filing to the Hong Kong stock exchange.

Annual throughput, regardless of ownership share, increased two per cent to 78.3 million TEU.

Operating profit was undercut by HK$427 million depreciation charges, including accelerated depreciation of certain assets at London Thamesport, and charges for new terminals in Hong Kong, mainland China, Spain, Mexico and Panama.

In a filing to the Hong Kong Exchange, Hutchison Whampoa said the outlook for 2014 was "constructive" for the port operating sector.

HPH operating berths will increase by six to 284 in 2014, including those in Dammam, Brisbane, Oman and Malaysia's Westports, said the company statement.

Asian activity contributed 35 per cent to throughput and 51 per cent to operating profit with European terminals accounting for 25 per cent.

Singapore-listed HPH Trust, the unit that runs Pearl River Delta terminals,N saw revenues fall because of the 40-day docker strike and its resulting rise in labour cost last spring.