Global port operator PSA International Pte Ltd (PSA) said it saw a decline in overall net profit in 2015, as the slow global economy and weak trade environment made a negative impact on its worldwide operations.
The PSA group registered a 9.5% drop in net income to SGD1.27 billion (US$933.4 million) year-on-year.
Consolidated revenue declined by 6.7% to SGD3.57 billion, and profit from operations contracted 9.3% to SGD1.71 billion due to lower volumes and higher depreciation.
PSA’s container throughput fell 2% from 2014, its terminals handling 64.10 million twenty-foot equivalent units (TEUs) in the year.
Its flagship Singapore Terminals contributed 30.62 million TEUs, a decrease of 8.7% year-on-year, while PSA terminals outside Singapore delivered a total throughput of 33.48 million TEUs, increasing 5% over 2014.
PSA group chairman Fock Siew Wah in a statement described the past year as having been highly volatile and “bewildering,” even as he anticipates continued challenges ahead.
“In 2015, the unusual volatility that persisted in the global marketplace caused a general loss of confidence on all fronts, bewildering governments, policy makers, central bankers, business leaders and investors, and culminating in sluggish or lower growth for most economies—including China which had been for the past decade one of the world’s key growth engines.”
He also noted the struggles of the container shipping industry as it grappled with softening trade and demand, excess tonnage capacity, and depressed freight rates.
He added that to cope with “the ongoing turbulence and decline of market confidence,” the company will continue to invest in hardware upgrade and soft skills enhancement as it adjusts to the changing market landscape.
Group CEO Tan Chong Meng agreed, saying, “The unprecedented pace of change is vexing the best minds in our industry and I am convinced that it will also shake up how industry players collaborate or compete in this dynamic environment.”
“In the last few years, we have witnessed the massive impact of rapidly changing mega liner alliances; the arrival of mega ships and port congestion around the globe due to the inadequacy of some berth facilities; protracted dips in crude oil prices; and a global economy that has lost much of its growth momentum resulting in anaemic trade flows.”
In view of this, he said the company will focus on improving its service, facilities, and productivity.
PSA participates in around 40 terminals in 16 countries across Asia, Europe, and the Americas, with flagship operations in PSA Singapore Terminals and PSA Antwerp.
