Forced termination of Panama operations hits Hutchison first-half results

CK Hutchison’s Ports & Related Services division reported revenue of HK$24,520 million for the first six months of 2028, an increase of 4% compared to the first half of 2025, and flat against the same period last year in local currencies. An 8% growth in storage income mainly contributed by Oman and Pakistan, was fully offset by a 1% reduction in overall

throughput as a result of reduced volume from Panama operations following their forced termination in late February 2026.

Excluding Panama, throughput grew by 3% year-on-year mainly from Yantian

and Shanghai Ports and major terminals in Asia.

The impact of the significant disruptions in the Strait of Hormuz on the division’s Middle East segment was slightly favourable, as the halt in quayside activities at the ports in the UAE was more than offset by additional ad‑hoc transhipment volumes at Sohar in Oman.

Despite the loss of contribution from Panama, EBITDA of HK$9,032 million and EBIT of HK$6,730 million, increased by 4% and 3% respectively in reported currency. Excluding Panama, underlying EBITDA and EBIT increased by 10% and 9% respectively in reported currency, while in local currencies, underlying EBITDA and EBIT grew by 6% and 5% respectively, reflecting the division’s strong underlying performance mainly arising from the favourable performance of Yantian and Shanghai ports, as well as Mexico from higher ancillary services income, partly offset by the reduced contribution from a shipping line associated company.

Looking into the second half, Hutchison says the Middle East situation remains highly unpredictable and trade tensions, including the re-introduction of tariffs by the US Administration, will continue to affect global trade. Front-loaded cargoes in response to expected tariff increases will add pressure to sustained volume growth. However, with the division’s geographically diversified portfolio, favourable mix of operations in gateway and transhipment ports, and continued focus on productivity and cost efficiencies, the division expects to achieve earnings growth in 2026 as a whole.