Hutchison Port Holdings Trust (HPH) has reported its biggest quarterly loss in four years and has fallen into the red for the full year 2018.
The Singapore-listed port operator posted a net loss of HKD 12.1bn ($1.5bn) for the fourth quarter 2018, compared to profit of HKD 237.8m during the same period in 2017.
This loss was due to a non-cash impairment of HKD 12.3bn incurred by companies’ production bases being moved out of China, growing global trade uncertainties and structural changes within the shipping industry, HPH said in its financial report for 2018.
These huge impairment caused HPH to record a net loss of HKD11.6bn for the full year 2018, a decrease of over 1,300% on the HKD944.2m recorded in 2017.
Throughput of HPH Trust’s ports during 2018 was 1% below the previous year.
“Further structural changes to container shipping lines are anticipated," HPH said.
"While the creation of further cost sharing alliances is not expected, further deployment of mega vessels will continue necessitating investment in port equipment and processes by deep-water port operators handling these vessels."
