Review of Results* PSA International Pte Ltd (PSA) handled 64.10 million Twenty-foot Equivalent Units (TEUs) for the year ended 31 December 2015, representing a decrease of 2.0% from the previous year.
* PSA’s flagship Singapore Terminals contributed 30.62 million TEUs with a decrease of 8.7% year-on-year, and PSA terminals outside Singapore delivered a total throughput of 33.48 million TEUs, increasing 5.0% over 2014.
* PSA Group revenue was lower 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 S$1.27 billion.
* PSA’s balance sheet remains strong with a gross debt equity ratio of 0.44 times at the close of 2015.
“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.
I would like to express my gratitude towards our management, unions and staff for their cohesive efforts towards dealing with the many challenges. The ongoing turbulence and decline of market confidence will undoubtedly test our mettle but we remain undaunted.
On behalf of the PSA Board and Management, I would also like to thank our customers and partners for placing their trust and confidence in us. 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 Fock Siew Wah, Group Chairman, PSA International
“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.
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.
Looking back at the triumphs and lessons in 2015, we are truly thankful to our customers for their continued patronage. I want to assure them of our unwavering focus on improving our service, facilities and productivity. 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.”
~ Mr Tan Chong Meng, Group CEO, PSA International