Hutchison Port Holdings Trust 30 June 2018

4 months ago JCprojectfreedom 0

JC Project Freedom HPH Trust USD Consolidated Income Statement 30062018

Operating profit is deteriorating to HK$1599.6 m in 1H2018 compared to HK$1663.9 m in 1H2017. Profits drops to HK$894.2 in 1H2018 compared to HK$937.6 m in 1H2017. Interest and other finance costs increases by 19.1% to HK$481m in 1H2018 compared to HK$403.9m in 1H2017. Earnings per share is HK 3.62 cents in 1H2018 compared to HK 5.01 cents in 1H2017 which is a 27.7% drop.

From the statement of cash flows, 1H 2018 net cash from operating activities is HK$ 1,803.8 m compared to 1H 2017 HK$2,602.8 m. Cash Flow used in Financing continues to increase to pay down borrowings which is the only good thing. The distributions to unit holders of HPH Trust drops as the payout is lower. This type of high dividend payout is not sustainable when the cash from operating activities is dropping, this explains why the management is decreasing the payout and tries to reduce its outstanding debt level. The turnaround needs another 4 – 5 years in the making.