PSA International Reports 25.2% Drop in Net Profit
Operating Profit Falls 3.7% Despite Increased Operating Costs and Inflation
Singapore-based port operator PSA International, a subsidiary of Temasek, has reported a 25.2% decline in net profit to S$1.1 billion in 2024, from S$1.5 billion the previous year. The company’s operating profit fell 3.7% to S$1.2 billion, due to increased operating costs and inflation.
Revenue Rises 8.9% Despite Challenges
On the other hand, revenue rose 8.9% to S$7.7 billion in 2024, from S$7.1 billion the previous year. The increase was mainly driven by higher throughput from port operations, as well as more ocean and air exports from its supply chain business.
Historic Milestone in Container Handling
In 2024, PSA handled 100.2 million shipping containers, known in the industry as 20-foot equivalent units (TEUs). This was a 5.6% growth from the previous year, and a historic milestone for the group. The company’s Singapore operations contributed 40.9 million TEUs, while PSA terminals outside the Republic delivered a total throughput of 59.2 million TEUs – a 5.5% and 5.7% increase, respectively, from the previous year.
Balance Sheet Remains Strong
PSA’s balance sheet remains strong, with a gross debt equity ratio of 0.5 times at the end of its financial year. The company’s chairman, Peter Voser, noted that 2024 was a year of "measured recovery" due to the confluence of various challenges.
Conclusion
PSA International’s financial performance in 2024 reflects the ongoing challenges in the global supply chain and the impact of inflationary pressures. Despite these challenges, the company remains focused on investing in infrastructure, innovation, and partnerships to strengthen its resilience and capabilities.
Frequently Asked Questions
Q: What was PSA International’s net profit in 2024?
A: S$1.1 billion
Q: How did PSA International’s operating profit change in 2024?
A: 3.7% decline
Q: What was the main driver of PSA International’s revenue growth in 2024?
A: Higher throughput from port operations and increased ocean and air exports from its supply chain business
Q: How many TEUs did PSA International handle in 2024?
A: 100.2 million
Q: What is PSA International’s gross debt equity ratio?
A: 0.5 times
