Singapore container terminal operator PSA International saw full-year net profit decline by over 6% in 2023 due to what it described as “challenging market conditions”.
The state-back company said net income was SGD 1.46bn ($1.1bn), against the SGD 1.56bn achieved in 2022, according to figures released on Friday.
Revenue for the year showed a year-on-year decline of over 11% to just above SGD 7bn as the company was also hit by weak trade demand.
PSA International handled 94.8m teu for the year ending 31 December 2023, representing a growth of 4.3% compared with 2022.
PSA Singapore contributed 38.8m teu, while PSA terminals outside of the city-state delivered a total throughput of 56m teu, increases of 4.8% and 3.9% on 2022, respectively.
PSA International group chairman Peter Voser described 2023 as a “transition amidst global trade uncertainty”, with the company facing a “challenging and constantly evolving business environment”.
“Inflation, rising interest rates, tight labour markets, geopolitical tensions, and ongoing wars impeded economic recovery worldwide,” he said.
New PSA International group chief executive Ong Kim Pong said that despite a collective push for economic recovery in many developed countries, the global economy remained “fraught with volatility in 2023”.
“Looking ahead to 2024, PSA will continue to focus on expanding our core business of ports and enabling more agile and resilient supply chains,” he said.
“In the face of uncertainties in the macroeconomic environment, PSA is committed to strengthening its fabric of port networks and supply chain services to support sustainable global trade flows.”
Ong took over as PSA International group chief executive earlier this year, replacing Tan Chong Meng who retired earlier this month after a 12-year stint.
In March 2023, PSA International announced a major restructuring, which saw it split into two core ports and cargo solutions businesses.
The company said at the time that the move was in line with its long-term strategy and that its new mid-mile logistics would be its “unique service differentiator”.
PSA International operates more than 60 deepsea, rail and inland terminals across 44 countries, according to its website.
