PSA raises revenue, net income
After a year of restructuring, Singapore-based port group PSA reported higher revenues for 2003 and a 22-percent jump in a net income to S$683 million ($399 million). Revenues rose 15 percent to S$3.4 billion ($2 billion) in 2003 from S$3 billion in 2002.
PSA said its port throughput in 2003 benefited from the recovery in the global economies and trade between countries. “Revenues are up 15 percent in part due to the strong growth in volumes,” it said.
Despite what it described as a difficult operating environment, PSA increased its worldwide container throughput 17 percent in 2003 to 28.7 million TEUs. Operations at PSA’s home base in Singapore accounted for a volume of 18.1 million TEUs in 2003 up 8 percent, while non-Singapore volumes expanded faster.
PSA reported a continued internationalization of its operations, including an investment in Eastern Sea Laem Chabang Terminal Co., Ltd., which operates two terminals at Laem Chabang port in Thailand.
“The increase in profits (was) largely in line with the gains in volumes and revenues and boosted by a full 12 months of results from Hesse-Noord Natie as compared to 9 months in 2002 and a consistently stronger Euro currency exchange rate in 2003,” the port group said. Hesse-Noord Natie NV is PSA’s major Belgian subsidiary.
PSA also cited measures to lower costs in 2003, and the non-recurrence of an impairment loss incurred in 2002 on its terminal in Aden, Yemen. During 2003, PSA has reduced its staff, introduced performance-related pay and sold non-core activities such as airport handling and cruise terminals.
“2003 has been a year of far reaching changes for PSA as we defended our market in Singapore and focused on our core business at home and abroad,” said Eddie Teh, group chief executive officer of PSA International. “We have had to make tough decisions to reduce costs to stay competitive, and to rationalize our portfolio of investments by divesting non-core assets.”
PSA is the world’s second-largest container terminal operator, and has operations in Asia and Europe.