PSA profits rise 59% in 2007

PSA profits rise 59% in 2007 PSA International’s net profit rose 59 percent on an 11 percent increase in revenue in 2007, the company said Monday in a release of its financial figures.
   Singapore-based PSA, one of the world’s biggest terminal operating groups, saw after-tax profit climb to $1.38 billion, a result of improved profitability from its global terminals as well as some one-off gains due to sales of offshore marine and car carrier business units in August 2007.
   'Group revenue grew creditably by 11.1 percent to ($2.98 billion),' the company said in a statement. 'Revenue for Singapore port operations posted a 9.9 percent growth while overseas ports posted a faster revenue growth of 14.9 percent. In 2007, PSA divested its offshore marine business and European car carrier terminals business, which gave rise to one-off gains. The group’s (operating) net profit grew by 17.6 percent while the divestment gains accounted for another 41.6 percent, resulting in a total increase of 59.2 percent in the group’s net profit over 2006.'
   Fueling the organic rise in revenue is steadily increasing container volume at PSA’s terminals, including its home terminal in Singapore, which is the world's busiest port and wholly managed by PSA.
   'Riding on the positive economic sentiments and good volume growth in intra-Asia and on the Far East to Northern Europe and Mediterranean trades in 2007, PSA International turned in another record volume of 58.9 million TEUs of containers, up by 14.8 percent from a year earlier,' PSA said. 'PSA's flagship terminal in Singapore is the biggest single contributor, achieving a record 27.1 million TEUs in 2007, a 13 percent year-on-year growth in throughput.
   'PSA's terminals in Europe, China and other parts of Asia also performed well and achieved 31.8 million TEUs in 2007, 16.3 percent higher than that in 2006 and representing 54 percent of the total group volume.”
   PSA manages 28 terminals in 16 countries and has a global capacity of 111 million TEUs. Only Hong Kong-based Hutchison Port Holdings, of which PSA holds a minority stake, has more global capacity.