BALANCED CAPITAL STRUCTURE
HPH Trust maintains a balanced capital structure with leverage
of about 53%. Short-term debt forms around a quarter of
total consolidated debt. HPH Trust’s total outstanding bank
loans amount to HK$33.1 billion, with the majority of them
unsecured. Details of the bank loans are set out on page 101
of the Annual Report.
OUTLOOK FOR 2016
U.S. volumes are expected to grow by a low-to-mid single
digit percentage in 2016. Forecasts indicate that the U.S. will
continue on its gradual recovery path that first began in late
2014, with anticipated increases in consumer spending and
employment. This is expected to positively impact outbound
cargoes to the U.S.. A slowdown in China and a weaker
Renminbi (“RMB”) may be a stimulus to export trade and offer
slight easing of cost pressures in the Trust’s China operations
in the medium term. However, it is expected that fluctuations
in the RMB will contribute to market volatility in the immediate
and short term.
In Europe, all signs point to a slow recovery, with low oil prices
and a weak euro providing momentum for growth. European
volumes are expected to stabilise in the second half of 2016,
with potential for some uplift toward the latter half of the year.
In Hong Kong, we expect volume to remain flat as alliances
continue with service rationalistion.
HPH Trust will continue to enhance its mega-vessel handling
capabilities by rolling out an additional mega-vessel berth in
YICT under the YICT Phase III Expansion.
By retaining its strong fundamentals and focusing on tari and
cost improvements, along with traditional practices of properly
managed financing arrangements and capital expenditure,
HPH Trust will continue to follow a steady and sustainable path of
growth, while ensuring stable annual distributions to unitholders.
Laid out on a single level, the 200 million TEU handled
by the Trust’s Hong Kong ports since operations began
would be enough to cover the land area of Singapore
more than four times!
Fun Fact
DID YOU
KNOW
029
ANNUAL REPORT 2015
HUTCHISON PORT HOLDINGS TRUST
