Hutchison’s port profits up 14% to $1.3 billion in 2005

Hutchison’s port profits up 14% to $1.3 billion in 2005    Hutchison Port Holdings posted HK$10.2 billion ($1.3 billion) in earnings before interest and tax (EBIT) in 2005, 14 percent higher than HK$8.9 billion in 2004, its parent company Hutchison Whampoa reported Thursday.
   The Hong Kong-based port operator consolidated its position as the world’s largest container terminal group by increasing its global throughput 8 percent to 51.8 million TEUs. It currently has interests in a total of 42 ports comprising 247 berths in 20 countries.
   The major contributors to the volume growth were Yantian port (up 21 percent); Europe Container Terminals in Rotterdam (up 12 percent); Xiamen International Container Terminals (up 49 percent); Kelang Multi Terminal in Malaysia (up 14 percent); and Panama ports container terminals (up 54 percent).
   The ports unit contributed 15 percent of Hutchison Whampoa’s consolidated revenue for its established businesses, which reached HK$241.9 billion ($31.2 billion) and 17 percent of its HK$59.5 billion ($7.7 billion) total EBIT.
   Hutchison Port Holdings continues to expand its terminal activities around the world. The group in August acquired an 80 percent interest in a project to build and operate a roll-on/roll-off terminal in Laem Chabang, Thailand, with a 30-year concession period. In October, a 50-50 joint venture was formed to develop and operate Dalian Ore Terminal for a tenure of 50 years. In November, the group announced the commencement of the 42.7-percent owned Yantian port Phase IIIB expansion project, which when completed in 2010, will add six berths to the existing nine berths in Yantian port. Also, in November, the group invested in a joint venture, in which it holds a 65 percent interest, to operate and develop a greenfield, 10-berth container terminal in the Port of Sohar, Oman, for a concession period of 40 years. In December, a conditional agreement was signed to acquire a 70 percent interest in Terminal Catalunya S.A., a five-berth container terminal with expansion opportunities in the Port of Barcelona, Spain. Also in December, the group entered into agreements with certain joint venture partners to establish a joint venture to acquire, develop, operate and manage the Phase II Container Terminal at Yangshan port in Shanghai. The group has a 32 percent interest in this project.
   “The world economy generally reported solid growth in 2005, despite rising U.S. dollar interest rates and a high and volatile energy price environment,” said Li Ka-shing, Hutchison Whampoa’s chairman. “Looking ahead, in 2006 oil prices are anticipated to remain at prevailing levels, and although U.S. dollar interest rates might continue to rise, any increase should be moderate. Hong Kong continues to benefit from the robust economic growth and enormous opportunity in the Mainland. With these encouraging economic trends, I am confident that our group’s businesses will continue to perform well in 2006.”