HUTCHISON Port Holdings Trust (HPH Trust) reported on Tuesday (Feb 7) a distribution per unit of HK$0.08 for its second half ended Dec 31, 2022, unchanged from the same period a year ago.

This takes its DPU for the full year to HK$0.145, also unchanged from the previous financial year, HPH Trust said in a bourse filing.

Revenue and other income for the full financial year fell 8.1 per cent to HK$12.2 billion (S$2.1 billion), while total operating expenses climbed 0.3 per cent to HK$7.9 billion. This resulted in operating profit falling 20.4 per cent to HK$4.3 billion.

Net profit for the full year dropped 37.1 per cent on year to HK$1.1 billion, from HK$1.7 billion in FY21. On a per-unit basis, earnings fell to HK$0.1262 in FY22, from HK$0.2006 in FY21.

HPH Trust noted that 2022 full-year throughput of its ports was 7 per cent below the previous year. It also said it experienced “challenging business conditions” in the second half of 2022.

“There was a commencement of a significant decline in containers shipped from China to Europe and North America and a decline in China imports,” HPH Trust said. It added that closed-loop Covid-19 control arrangements at Yantian port had continued to pressure operating costs, and cross-border restrictions on trucking operations had an adverse effect on shipments through Hong Kong.

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However, HPH Trust noted that the beginning of 2023 has seen some “encouraging developments”, with relaxed Covid-19 controls in China, and the reopening of the Chinese border with Hong Kong.

“Apart from expected gradual improvements in international trade during the year, HPH Trust will benefit from the elimination of the closed-loop arrangements at Yantian and an anticipated return of containers to Hong Kong as cross-border trucking recovers,” it said.

As at Dec 31, 2022, HPH Trust had total consolidated cash of HK$10.4 billion, while total consolidated debt stood at HK$27.1 billion. Its long-term debt amounted to HK$22.1 billion, and HPH Trust noted that around 71 per cent of its long-term debt has been hedged against rising interest rates.

HPH Trust units closed unchanged at US$0.21 on Tuesday, before the earnings announcement.