Hutchison profits rise on increased container volumes in 2017

The port terminal operator subsidiary of conglomerate C.K. Hutchison Holdings Co. posted an annual container throughput of 84.7 million TEUs last year, 4 percent more than in 2016, and expects “modest growth in global trade in 2018.”    Hong Kong-based C.K. Hutchison Holdings Co.’s ports and related services division reported higher volumes, revenues, and profits for 2017 when compared with 2016, according to the company’s most recent financial statements.
    For the full year in 2017, the the 287 port terminal berths operated by Hutchison handled 84.7 million TEUs of containerized cargo, 4 percent more than in 2016.
   Hutchinson’s port and related services revenues stood at nearly HK$34.2 billion Hong Kong dollars (U.S. $4.35 billion), up 6 percent from the previous year.
   Earnings before interest, taxes, depreciation and amortization (EBITDA) for the division rose 8 percent year-over-year to $12.56 billion Hong Kong, while earnings before interest and taxes (EBIT) was up 9 percent from 2016 to HK$8.23 billion.
   The company attributed the growth in box volumes said to a steady volume pick up at its terminals in mainland China and Hong Kong, Barcelona, Pakistan and Panama, which was partly offset by lower volumes in Klang, Jakarta, Dammam and Freeport.
   C.K. Hutchison Holdings, which was formed in 2015 through the merger of Hutchison Whampoa and Cheung Kong Group, said its ports division would “continue to pursue cost saving initiatives as well as strengthening strategic alliances with customers in order to maximize profits from an expected modest growth in global trade in 2018.”
   The conglomerate, which has interests in infrastructure, retail, energy, telecommunications, finance reported its overall profit in 2017 attributable to shareholders climbed 6 percent to HK$35.1 billion for the year, with total EBIT rising 7 percent to HK $67.6 billion. Revenue in 2017 stood at HK$414.8 billion, up 9 percent from 2016.
   Li Ka-shing, who founded the company in 1950, said that he would step down as chairman of the company and retire as executive chairman at the company’s next annual meeting, but remain a senior advisor. His son, Victor Li Tzar-kuoi who has worked with his father for 33 years will succeed him as chairman.