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Phnom Penh Port Profits Up

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Phnom Penh Autonomous Port was listed on the Cambodia Securities Exchange last year. KT/Chor Sokunthea

The first quarter earnings of the publicly listed Phnom Penh Autonomous Port (PPAP) were up by more than 10 percent in comparison to the same period last year thanks to the Kingdom’s steady economic growth and the company’s efforts in streamlining its expansion.
According to this year’s first quarter results released by the Cambodia Securities Exchange (CSX) listed PPAP, total revenue was at $3.92 million. This was an increase of more than 10 percent from $3.56 million in the same period last year.
The company also reported to the CSX that its net profit after tax increased by 26 percent to $912,331 from $724,072 in last year’s first quarter.
Hei Bavy, director general of PPAP, told Khmer Times yesterday that macroeconomic factors and also the company’s own internal controls helped increase its first quarter revenue.
“In the first three months this year, the country’s economy grew and this had a knock-on effect on the company. Also, we had been tightening our spending and streamlining our expansion. This has had a positive effect on our company and also made a big contribution to our business performance,” said Mr. Bavy.
Lamun Soleil, director of market operations in the CSX, told Khmer Times yesterday that PPAP’s impressive first quarter earnings, this year, was a good reflection of the overall performance of the Kingdom’s fledgling stock exchange.
Phnom Penh Autonomous Port was listed on the CSX last year, after Grand Twin International in 2014 and Phnom Penh Water Supply Authority in 2012. Last month, the Phnom Penh Special Economic Zone became the fourth company to be listed on the CSX.
“PPAP’s increase in revenue and net profit reflects well on the CSX as a whole. It shows that there are high performers listed publicly and this helps instill market confidence,” said Mr. Soleil.
Mr. Soleil revealed that PPAP had already set out a strategy to pay a dividend rate of at least five percent to shareholders for the first five years.
“The minimum dividend guarantee is a good strategy and this will certainly support the company’s listed CSX price and its earnings per share to be above the price in the IPO [initial public offer],” he added.
While PPAP’s revenue increased in the first quarter, the financial report to the CSX indicated that port container traffic declined by 6.79 percent, from 34,647 TEUs to 32,266 TEUs. Port container traffic measures the flow of containers from land to sea transport modes and vice versa in twenty-foot equivalent units (TEUs) ─ which is the size of a standard container.
The report said that the fall in port container traffic was due to several factors like the New Year celebrations in China and Vietnam in mid-February, the slowdown of China’s economy and increasing use of overland transport.
However, the PPAP sought to assure shareholders that though port container traffic was down by 6.79 percent, it did not affect the company’s overall revenue.
“PPAP can make profits from other operations like renting out container space, sand-mining activities and running forklifts to move containers back and forth from barges,” said the report.
Yesterday, share price of PPAP closed at 5,460 riel ($1.37) per share, an increase of 0.37 per cent from the close at 5,440 riel ($1.36) on Monday, according to CSX’s data.

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