TOP LINE CONTINUED ON STABLE PATH;
OPERATING PROFIT HEALTHY
In 2015, the Trust recorded growth in operating profit amidst
a lacklustre year for the shipping industry. Despite a drop in
transshipment volume resulting from service rationalisation
by shipping lines through alliance formation and slot sharing
agreements, the Trust was successful in raising taris for
customers upon contract renewal and maintained revenue
and other income for the full year 2015 at HK$12.6 billion,
whilst also managing to gain market presence in both
Hong Kong and Shenzhen.
During the fourth quarter of 2015, HPH divested its interests
in Zhuhai International Container Terminals (Jiuzhou) Limited
(“Zhuhai Jiuzhou Terminal”), one of the river ports in which
the Trust derives its economic benefits. The Trust received
HK$347.2 million, representing its share of the consideration
from HPH for cessation of the economic benefits, and
recognised a gain of HK$155.5 million in the same quarter,
after fully recovering its original investment valued at the time
of initial public oering.
Net profit after tax (“NPAT”) for the full year 2015 was HK$3.0
billion – a 119.0% increase from 2014. Net profit attributable to
unitholders was HK$1.7 billion, up 110.1% from 2014. This takes
into account the one-o items which include the gain from the
cessation of River Ports Economic Benefits in Zhuhai Jiuzhou
Terminal and additional depreciation due to the change
of an accounting estimate in 2015; and the HK$19.0 billion
goodwill impairment and net gain from the disposal of a 60%
eective interest in ACT in 2014. Net of the one-o items, full
year NPAT for 2015 was HK$2.9 billion, up 6.5% from 2014, while
NPAT attributable to unitholders rose to HK$1.6 billion, a 2.9%
increase when compared to the previous year.
This increase in attributable NPAT of 2.9% was also made
possible by improved cost management. Overall operating
expenses from regular operations, net of the one-off items,
for HPH Trust for 2015 were HK$8.4 billion. Improvements in
operational eciency and lower fuel prices helped mitigate
the increase in external contractor costs and inflationary
pressure, resulting in a 3.7% decrease in overall expenses
year-on-year. As a result, operating profit for the full year 2015
improved by 8.0%.
THROUGHPUT CONSISTENT AMIDST GLOBAL
ECONOMIC UNCERTAINTY
Compared to 2014, throughput at HPH Trust’s deep-water
ports fell by 1.3%, handling a total of 23.9 million TEU.
Combined throughput at HPH Trust’s Hong Kong ports fell
6.4% year-on-year, whereas throughput for the overall Hong
Kong market decreased by 9.5%. The drop in throughput at HIT
was mainly due to weaker transshipment and intra-Asia cargo
volumes, a result of more ecient alliance operations and
vessel slot sharing agreements.
YICT’s throughout rose 4.2% year-on-year, outperforming
Shenzhen’s throughput increase of 0.7%. Throughput growth at
YICT was primarily driven by transshipment and empty cargoes
as growth in U.S. laden volumes was partially oset by declines
in European trade.
Revenue contribution from HPH Trust’s China operations
continued to grow, representing 59.6% of full year revenue,
from 57.8% in 2014.
Continuous infrastructure improvements and enhanced
operational eciencies enabled HPH Trust to maintain its
outstanding performance within the PRD in 2015, and to stay
ahead of continued economic uncertainties and changing
industry demands.
HEALTHY CASH BALANCE PAIRED WITH
STABLE DISTRIBUTIONS
HPH Trust concluded 2015 with a healthy cash balance of
HK$6.8 billion. Cash generated from operations in 2015
totalled HK$6.8 billion, with net cash from operating activities
at HK$5.0 billion.
In 2015, HPH Trust recommended a total payout of HK$3.0
billion in distributions to unitholders, translating to a DPU of
34.4 HK cents and a distribution yield of 8.3% based on the
market price of US$0.53 on 31 December 2015. The Trust’s
units remain attractive when compared with the average yield
oered by STI component stocks.
In view of the expected soft global trade outlook, the Trustee-
Manager will continue to adopt prudent cost and cash flow
management to maintain stable cash distributions.
Financial
Review
OPTIMISING FOR THE FUTURE
028
