Bintulu Port’s LNG throughput seen stable on Japan, South Korea demand
The research house flagged a pick-up in inbound and outbound cargo volumes at Samalaju Industrial Port from key customers Press Metal Aluminium Holdings Bhd and OM Holdings Ltd.
KUCHING (August 24): The liquified natural gas (LNG) cargo throughput at Bintulu Port Holding Bhd is expected to remain stable with sustained demand from Japan and South Korea, alongside stronger demand from China on trade diversion.
According to Kenanga Investment Bank Bhd (Kenanga Research), China’s key LNG suppliers are currently Australia at 34 per cent, Qatar (23 per cent), Russia (11 per cent) and Malaysia (10 per cent).
“Thus, the shortfall of LNG supply to China may be fulfilled by these key LNG suppliers,” it said in a note on Monday.
The research house also flagged a pick-up in inbound and outbound cargo volumes at Samalaju Industrial Port from key customers Press Metal Aluminium Holdings Bhd and OM Holdings Ltd.
To recap, Bintulu Port posted RM60.2 million core net profit for first half of FY26 (1HFY26), down 2 per cent year-on-year, in line with the research house’s expectation.
Revenue for the period rose 9 per cent to RM434 million on stronger contribution from both Bintulu Port, up 11 per cent on strong LNG demand, and Samalaju Industrial Port, up 3 per cent on higher cargo volumes.
On the concession, Kenanga Research said the port operator recently established a heads of agreement with the Sarawak government for an interim operating framework, and expects the new concession to be finalised soon.
Bintulu Port is under an interim lease agreement until December 2026 pending completion of the handover of Bintulu Port Authority control, while the setting up of the new Bintulu Port Authority Sarawak under the purview of the state government is on track for completion by end-FY26.
The federal-to-state handover was officially completed on June 21, when Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg finalised a tripartite pact that included the handover of RM1.8 billion as mutual compensation for the acquisition of the port’s assets.
Bintulu Port Sdn Bhd remains the state-approved operator, with cargo movements, terminal operations and contractual obligations carrying on unaffected.
“We continue to like BIPORT for its steady income stream from handling LNG cargoes for Malaysia LNG Sdn Bhd, that typically makes up close to 50 per cent of its total profit.
“(We also like) the tremendous growth potential of Samalaju Industrial Port backed by rising investment in heavy industries in Samalaju Industrial Park,” it said.