PSA profits fall despite increased revenue

According to the port operator’s latest financial statements, profits fell 1.7% in 2014 despite 2.9% revenue growth.    PSA International PTE LTD and its subsidiaries increased yearly group revenue 2.9 percent to 3.83 billion Singapore dollars (U.S. $2.77 billion) in 2014, according to the company’s latest financial statement. Net profits, however, decreased 1.7 percent to $1.4 billion Singapore dollars compared to 2013.
   The Singapore-based port operator attributed the decrease in net profits primarily to a 1.1 percent decline in profit from operations due to higher operating cash costs and depreciation.
   PSA handled 65.44 million TEUs of ocean freight in 2014, a 5.8 percent increase from the previous year. The company’s flagship Singapore Terminals increased their throughput 4.1 percent year-over-year to 33.55 million TEUs, while PSA terminals outside Singapore increased overall volumes by 7.8 percent to 31.89 million TEUs.
   PSA International Group Chairman Fock Siew Wah said of the results, “2014 turned out to be a mixed year for the global economy. PSA’s business health depends on global trade and the shipment of goods in containers. We are therefore truly thankful that, notwithstanding the overall sluggish global economic and trade growth, PSA’s group-wide performance held its ground in terms of throughput, revenue and net profit.”
   “PSA handled a record 65.4 million TEUs in 2014 and experienced volume growth in most markets we operated,” added group CEO Tan Chong Meng. “While the throughput figures might have given the perception that 2014 was a typical year, we at our corner serving our customers, knew 2014 was business unusual! The industry awoke to harsh new realities: mismatch of mega vessels and ports, more complex alliance arrangements, reduced shipping reliability, port congestion; it was a challenging and uncertain time for the industry. In fact, as more mega vessels enter service and the workings of the mega alliances go into full swing in 2015, we may continue to see operational challenges this year.”