Hutchison Port (NS8U) H2 2024 earnings summary

Executive summary

• 2024 saw record throughput at Yantian, up 12% year-on-year, surpassing 15 million TEU for the first time, while total throughput increased 5% year-on-year.

• Outbound cargoes to the US and EU rose 14% and 12% respectively in 2024.

• Hong Kong volumes declined 6% year-on-year, but profit contribution grew due to a better business mix and cost controls.

• Profit after tax attributable to unitholders was HKD 615 million, with a full-year DPU of HKD 0.122, implying a 9.5% yield.

• The outlook for 2025 is cautious due to global trade uncertainties, tariffs, and interest rate pressures.

Financial highlights

• Revenue for 2024 was HKD 11,567.3 million, up 9% year-on-year, driven by higher throughput and improved cargo mix.

• Operating profit reached HKD 4,378.1 million, a 32% increase year-on-year.

• Profit before tax was HKD 3,392.4 million, up 46% year-on-year; profit after tax was HKD 2,173.2 million, up 47%.

• Interest and finance costs were HKD 855 million, 2% lower year-on-year due to debt reduction.

• CapEx was HKD 371 million, 24% lower than 2023, mainly maintenance-related.

Outlook and guidance

• 2025 volume growth is expected to be modest, targeting 1%-2% growth at Yantian, with Hong Kong volumes expected to stabilize.

• DPU guidance for 2025 is HKD 0.115–0.125, with potential upside if interest rates decline.

• Interest cost increases from refinancing will pressure cash flow and distributions.

• New shipping alliances (Gemini Cooperation and Premier Alliance) effective February 2025, with Yantian expected to benefit.

• Commitment to reduce emissions intensity by 30% between 2021 and 2030.