Bintulu Port profit surges on lower spending

Bintulu Port Holdings second quarter net profit surged more than 70 per cent and it expects 2010 numbers to be better, reported Business Times.

The Malaysian port, ultimately owned by state oil firm Petroliam Nasional, posted a net profit of US$10.62 million in the quarter to June 30, against $6.18 million in the same quarter last year.Revenue was up 4.4 per cent to $34.32 million.

It did not say why it did better in the second quarter, but mentioned that its spending was lower.

"The group's expenditure in the current quarter is lower by $4.77 million compared to the previous corresponding quarter," Bintulu Port said.

The higher costs were due to prior years' rent that it had to pay for facilities like the 950m wharf and gravel jetty, among other things.

For the first half period, the company reported a net profit of $23.63 million, up by almost a tenth. Revenue inched up three per cent to $71.89 million.

Bintulu Port said revenue from the handling of liquefied natural gas (LNG) vessel calls and cargo will continue to be the main contributor to earnings in 2010.

"A positive growth is also expected from bulking services operations and from the handling of cargo and vessel calls for palm oil, palm kernel, alumina, general cargo and container," it added.

Bintulu Port's expansion projects would be completed soon. The projects include expanding the container terminal port's annual handling capacity by 250,000 TEUs to 650,000. The added capacity can handle demand up until 2014.

Bintulu Port handled more than 248,000 TEUs last year, down from 290,000 TEUs, or 14 per cent, in 2008.
(Source:www.cargonewsasia.com)