Problem of Aden venture, lower rates hit PSA’s profits
PSA Corp., the highly profitable Singapore-based international port operator, suffered a 23-percent decrease in net profit in 2002 to S$560 million ($322 million), mainly because of cuts in handling rates in Singapore and problems at its Aden container terminal joint venture in Yemen.
Group operating income fell 31 percent to S$741 million ($426 million) from S$1.1 billion in 2001.
The lower operating profit was mainly due to the introduction of port charge discounts in Singapore last July, and the impact of a S$125-million ($72 million) “provision for impairment loss” covering PSA’s container terminal joint venture in Aden.
Group revenue increased 29 percent to S$3 billion ($1.7 billion) from S$2.3 billion in 2001. PSA said the large increase in revenue was due to the inclusion for the first time of Hesse-Noord Natie, a Belgian port operator acquired in April 2002, and to the full-year contribution of a joint venture port project in Guangzhou.
The port group reported growth from its port projects in China, Europe and India.
PSA handled 24.5 million TEUs worldwide in 2002, placing it second among the world’s largest port groups, after the Hutchison group.