Bintulu Port's 1QFY25 CNP falls 37 per cent y-o-y, disappoints analyst expectations

Borneo Post

04-06-2025

Analysts guide that Bintulu Port's negative variance was largely due to weaker-than-expected LNG cargo volume due to technical difficulties at the MLNG complex.
KUCHING (June 4): Bintulu Port Holdings Bhd's (Bintulu Port) first quarter of financial year 2025 (1QFY25) core net profit (CNP) has fallen by 37 per cent year on year (y-o-y) to RM28.4 million, disappointing analyst expectations.
In a results note, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) reported that the group's 1QFY25 results were below expectations as it met only 19 per cent and 18 per cent of theirs and consensus' full-year estimates.
They guided that the negative variance was largely due to weaker-than-expected LNG cargo volume due to technical difficulties at the MLNG complex.
'Note that, there was a scheduled major maintenance plant shutdown from April 30 to May 29 at the Petronas MLNG complex which we expect to have severely impacted its 2QFY25 performance,' said the research arm.
The technical difficulties caused the group's Bintulu Port to see a two per cent y-o-y drop in revenue while its Samalaju Industrial Port fell by 9 per cent drop due to weaker cargo volume from key customers like Press Metal Holdings Bhd (PMetal) and OMH Ltd (OMH).
Its LNG cargo volume was 3.4 per cent y-o-y weaker while its non-LNG grew at a flattish 0.5 per cent as aluminium exports shifted from containers to bulk shipments as well as weaker gateways cargoes from heavy industries in Samalaju Industrial Park due to high ocean freight rates caused by the red sea crisis.
Overall, the group's 1QFY25 revenue fell three per cent y-o-y while its CNP fell at a wider 37 per cent as it was exacerbated by a higher effective tax rate of 38.3 per cent compared to 22.7 per cent a year ago.
Kenanga Research added that Bintulu Port's declared interim NDPS of 3 sen was also below expectations as it was lower than the 4 sen declared back in 1QFY24.
Despite the missed expectations, Kenanga Research believed that the LNG cargo throughput at Bintulu Port will remains table with sustained demand from Japan and South Korea, and stronger demand from China thanks to trade diversion.
'Meanwhile, there has been a pick-up in inbound and outbound cargo volumes at Samalaju Industrial Port from its key customers, such as Press Metal and OM Holdings,' they added.
To reflect new lower adjusted forecasts, Kenanga Research maintained their 'market perform' call on the port operator with a lowered sum-of-parts derived target price of RM5.15 which is based on a weighted average cost of capital of 5.5 per cent and terminal growth rate of two per cent. Bintulu Port Holdings Bhd