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Hutchison Port Holdings Trust reports FY2023 DPU of 13.2 HK cents, 9.0% lower y-o-y

Felicia Tan
Felicia Tan • 2 min read
Hutchison Port Holdings Trust reports FY2023 DPU of 13.2 HK cents, 9.0% lower y-o-y
DPU for the 2HFY2023 stood at 7.70 HK cents, down from 8 HK cents in the 2HFY2022. Photo: HPHT
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Hutchison Port Holdings Trust has reported a distribution per unit (DPU) of 13.2 HK cents (2.3 cents) for the FY2023 ended Dec 31, 2023, bringing 9.0% lower than its FY2022 DPU of 14.50 HK cents. The trust’s latest full-year DPU represents a distribution yield of 11.4% as at its market price of 14.8 US cents as at Dec 31, 2023.

DPU for the 2HFY2023 stood at 7.70 HK cents, down from 8 HK cents in the 2HFY2022.

Earnings for the FY2023 fell by 78.8% y-o-y to HK$233.5 million while earnings per unit stood at 2.68 HK cents, 78.8% lower y-o-y.

Revenue and other income for the FY2023 fell by 12.6% y-o-y to HK$10.64 billion as combined container throughput of HIT, COSCO-HIT and ACT (also known as HPHT Kwai Tsing collectively) fell 14.7% y-o-y due to lower local and transshipment cargoes. HIT refers to Terminals 4, 6, 7 and two berths in Terminal 9, located at Kwai Tsing, Hong Kong while COSCO-HIT refers to Terminal 8 East, at Kwai Tsing, Hong Kong. ACT refers to Terminal 8 West, also at Kwai Tsing, Hong Kong.

In addition, the container throughput of s Yantian International Container Terminals (YICT) decreased by 1.5% as compared to 2022, primarily driven by the decrease in the US and empty cargoes. The declines were, however, offset by higher transshipment cargoes.

The average revenue per twenty-foot equivalent unit (TEU) for Hong Kong and China were below last year, mainly attributed to lower storage income and the depreciation of the Chinese renminbi (RMB).

See also: Aztech Global posts net profit of $15.9 mil for 1QFY2024, up 18.7% y-o-y

Looking ahead, the attacks at the Red Sea could disrupt global trade and see erratic shipping schedules due the delay in rerouting vessels. This could bring about a negative impact to the trust’s throughput volume in the 1QFY2024, it warns in its Feb 7 statement.

The disruption may also lead to pressure on Chinese exporters who could face an imbalance and shortage of empty containers.

“Market in general expects the Red Sea impact shall be short-term, and port operators will unlikely benefit from the high storage income earned during the pandemic. HPHT will monitor the ongoing situation, stay agile in customers’ needs and focus on operational efficiency,” it adds.

See also: ESR-LOGOS REIT reports 10.8% lower NPI of $62.9 mil in 1QFY2024

Unitholders can expect to receive their DPUs on March 27.

As at Dec 31, 2023, cash and cash equivalents stood at HK$8.19 billion.

Units in HPHT (USD) closed flat at 14.6 US cents while units in HPHT (SGD) closed 0.1 cent lower or 0.51% down at 19.7 cents on Feb 7.

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