Publicly listed firm Salalah Port Services, which operates the Port of Salalah overlooking the Indian Ocean, has reported positive growth in volumes handled at its Container and General Cargo Terminals during the first half of this year.
The Container Terminal (CT) handled 2.241 million TEUs of containers in H1 2022, compared to 2.142 million TEUs in the corresponding period of last year, an increase of 4.6 per cent. The General Cargo Terminal (GCT) has handled 8.896 billion tonnes of general commodities during H1, 2022, as compared to 8.798 million tonnes in H1 2021, a marginal increase of 1.1 per cent.
The major commodities handled are limestone, gypsum, methanol, and cement, which are exported from Salalah to nearby markets, and continue to drive the general cargo business, said Braik Musallam al Amri, Chairman, Salalah Port Services Co SAOG.
Commenting on the port’s financial performance, Al Amri noted that consolidated net profit for H1, 2022 was recorded at RO 1.418 million, as compared to the corresponding period last year at profit of RO 2.619 million. Consolidated EBITDA was recorded at RO 6.598 million during H1, 2022, as compared to RO 8.252 million during same period last year.
Total revenue from operations increased by 7 per cent to RO 35.111 million, while net profit after tax declined to 1.418 million this year, down from RO 2.619 million in H1 2021. Direct Operating cost increased by 14 per cent as compared to corresponding period last year mainly due to increase in Staff cost, Marine cost and Fuel cost.
Commenting on the future growth outlook for the company, the Chairman noted that containerised exports are expected to grow in line with the growth witnessed in first half of 2022. Imports however are unlikely to recover from decline seen in the first half due to the current global economic situation.
“The freight rates are unlikely to soften further in the second half and the schedule reliability to remain low without any significant change from the first half. The management continues to pursue new opportunities to further enhance volumes,” he stated.
On the general cargo segment, the demand for the dry bulk commodities including limestone and gypsum remains strong and are unlikely to be negatively impacted in view of the strong demand in the India and Asia, he said, adding that prospects for break bulk including cement and liquid bulk exports are also positive.
