PSA Intl profit up 59pc, but US subprime crisis casts shadow on 2008

SINGAPORE's PSA International has generated a net profit for 2007 of S$1.9 billion (US$1.38 billion), an increase of 59.2 per cent over 2006.

Last year's revenue amounted to S$4.151 billion, up 11.1 per cent year on year, on operating profits of S$1.577 billion, up 21 per cent. Revenue for Singapore port operations posted a 9.9 per cent growth while overseas port revenue grew 14.9 per cent."Looking forward, the growing severity of the subprime credit crisis and the high price of oil continue to bring about greater uncertainty which may adversely impact trade volumes. Therefore, as we tread into 2008, caution is our watchword," said chief executive Eddie The.

PSA's European terminals contributed revenues of S$1.36 billion, or 32.7 per cent of the group's turnover. Europe revenues increased by 10.6 per cent on strong volume performance at Belgian terminals, as well as on the contribution from the newly acquired Mersin Port. The China terminals increased revenue by 22.5 per cent in 2007, with growth from existing customers, as well as contributions from the newly operational Tianjin terminal.

PSA handled 58.9 million TEU, up 14.8 per cent from a year earlier. PSA's flagship terminal in Singapore was the biggest single contributor, achieving a record 27.1 million TEU in 2007, a 13 per cent year on year increase.

PSA's terminals in Europe, China and other parts of Asia collectively handled 31.8 million TEU in 2007, 16.3 per cent higher than that in 2006 and representing 54.0 per cent of the total group volume, a company statement said.

The positive results came amid "good volume growth in intra-Asia and on the Far East to northern Europe and Mediterranean trades in 2007", the release said.