World-leading port and terminal operator PSA International has released its financial results for the year ending December 31, 2015, in which the company saw revenue decline by 6.7%, while profit from operations declined 9.3% due to lower volumes and higher depreciation.
Overall net profit for the year was 9.5% lower at more than US$936 million.
PSA International (PSA) handled more than 64 million TEU in 2015, which is a 2% reduction from the previous year.
PSA’s flagship Singapore Terminals contributed 30.6 million TEU, with a decrease of
8.7% year-on-year, and PSA’s terminals outside of Singapore delivered a total throughput of
33.4 million TEU, which is an increase of 5% in comparison to 2014.
Mr Fock Siew Wah, Group Chairman at PSA International, said: “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.
“The container shipping industry was not spared as it grappled with softening trade and demand, excess tonnage capacity and depressed freight rates.
“Amidst this troubling economic landscape, and despite anticipating and preparing for the then oncoming storm, PSA was nevertheless adversely affected albeit to a lesser extent than would be otherwise.
“PSA will continue to invest in upgrading our hardware and soft skills to support their changing needs as we work closely together in anticipation of brighter days ahead.”
Mr Tan Chong Meng, Group CEO, PSA International, said: “These are difficult, uncertain times, but also challenging and exciting. 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.
“We take the tough business conditions in our stride and remain confident that PSA has in place the right fundamentals to pursue our long term goals and strategies.
“We will continue to invest, upgrade, give of our best to our customers and partners, and work alongside them to ride out the choppy waves towards calmer horizons.”