DPU slips to HK$0.05 on a lower distribution amount

 

HUTCHISON Port Holdings (HPH) Trust on Tuesday (Jul 23) reported a 66.6 per cent increase in earnings for the first half of 2024 to HK$158.1 million (S$27.2 million), from HK$94.9 million in H1 2023.

 

Despite the increase in earnings, distribution per unit (DPU) for the period fell to HK$0.05, from HK$0.055 in H1 2023, on a lower distribution amount.

 

Revenue for the period rose 2.6 per cent to HK$5.3 billion from HK$5.2 billion a year prior. This was due mainly to the 11 per cent year-on-year increase in container throughput at the trust&rsquo s Yantian International Container Terminals in China.

 

The higher throughput was driven by increases in laden exports, inbound empty containers, and transshipment cargoes.

 

This was partially offset by the container throughput of HPH Trust&rsquo s other ports in Kwai Tsing, Hong Kong, which fell 6.9 per cent in H1 2024 &ndash compared with H1 2023 &ndash on fewer local and transshipment cargoes.

 

The average revenue per container fell below 2023 levels due to lower storage income and renminbi depreciation.

 

As at Jun 30, 64 per cent of HPH Trust&rsquo s debts were on fixed interest rates, reducing its exposure to the market&rsquo s current high interest rates.

 

Should interest rates decrease by 25 basis points, the trust&rsquo s monthly increase expense would decrease by about HK$1.9 million. However, the trust could see a significantly higher interest rate when it refinances its debts between November 2024 and March 2025.

 

HPH Trust noted that its peak season started earlier than usual this year, with shipments to the US ahead of Christmas already underway as businesses try to avoid the increases in general freight rates around the end of the year.

 

The trust&rsquo s ports have also benefited from disruptions from nearby ports including Singapore, as vessels are returning out of schedule due to the Red Sea crisis. Extra loaders have been calling at Hong Kong since June.

 

The trust also said it is committed to reducing its overall emissions intensity by 30 per cent between 2021 and 2030.