Bintulu Port expects a better second half due to increased LNG shipments and shunned Russian aluminium

AL Circle

Bintulu Port Holdings Bhd's (Bintulu Port) operations are expected to perform better in the second half of the year, according to analysts, despite its first-half results falling short of the full-year consensus estimate. Kenanga Research believes that the results are in line with expectations and hopes for a stronger second half due to higher liquefied natural gas (LNG) shipments ahead of the winter months.

Bintulu Port expects a better second half due to increased LNG shipments and shunned Russian aluminium

{alcircleadd}

However, the ongoing economic challenges in China may lead to lower demand for aluminium and manganese, which could affect inbound and outbound cargo volumes from Samalaju Industrial Port's key customers. Nevertheless, Kenanga Research believes that Bintulu Port's key customers have an edge over their peers in the international market due to their products' low-carbon footprint.

Furthermore, the Western countries' unwillingness to buy Russian aluminium could potentially lead to a search for alternative sources of aluminium supply, which may benefit Bintulu Port's operations.

Kenanga Research and AmInvestment Bank remain positive on Bintulu Port's long-term outlook due to its steady income stream from handling LNG cargoes for Malaysia LNG Sdn Bhd, which could potentially enjoy a step-up in earnings if Bintulu Port is granted a significant hike in its port tariffs. Moreover, the tremendous growth potential of Samalaju Industrial Port, backed by rising investment in heavy industries in Samalaju Industrial Park, is another factor that makes Bintulu Port an attractive investment.

Heat Treatment

An interim agreement was signed on November 24, 2022, to continue operating Bintulu Port for an interim period of six months from January 1, 2023, onwards, which has since been extended by 12 months from July 1, 2023. Further extension of six months may occur in the event of a delay in finalising and executing the new privatisation agreement.

Edited By:


This news is also available on our App 'AlCircle News' Android | iOS


Alternate Text
EPIQ Machinery

A world class equipment designer specialized in developing innovative & effective solutions for heavy equipment, vehicles, and material handling systems

Alternate Text
RIA Cast House Engineering

Leading supplier of rail mounted precision Furnace Charging Machines and Furnace Skimming Machines

Alternate Text
Altek

Leading manufacturer of value-added equipment for the aluminum casthouse

Alternate Text
Jagannath Company

Manufacturers & Supplier of Magnesium Metal and Aluminium Foundry Chemicals.

Alternate Text
XIAN HUAN-TAI TECHNOLOGY

Your reliable partner in aluminum casthouse equipment and products

Alternate Text
Fioscope

Fioscope provide air-cooled camera technology for high temperature applications

Related
Business Leads
A7 Required cif China is a PRIORITY: 25,000-30,000 MT per mo...
17 Nov 2024 Buying request

Purity 99, 7 %Grade : AL 99.70%1. AL : min 99.7%2. Fe : max ...
17 Nov 2024 Buying request

Specification Composition Aluminum (Al) ≥ 99.7% Iron ≤ 0.1% ...
14 Nov 2024 Buying request

Read this news article and much
more on the AL News app
Get real-time news and business
lead alerts on your phone
SUBSCRIBE NOW
Market

Market

Project

Project

Technology

Technology

Leads

Leads