Bintulu Port inks interim agreement with Sarawak to ensure uninterrupted port ops, posts lower 2Q profit
KUALA LUMPUR (Aug 21): Bintulu Port Holdings Bhd (KL:BIPORT) has entered into a Heads of Agreement (HOA) with the Sarawak government to establish an interim operating framework as the port transitions from federal to state control.
The agreement between its wholly-owned Bintulu Port Sdn Bhd (BPSB), the Sarawak government and Bintulu Port Authority — which took effect on July 27 — is to ensure that port operations continue without interruptions while the parties finalise a long-term Port Operation Concession Agreement.
Under the HOA, "BPSB shall continue to control, manage and operate Bintulu Port and carry on the port undertakings in accordance with the applicable laws", the group said in a bourse filing on Friday.
This follows a tripartite agreement signed on June 23, under which BPSB agreed to continue operating the port following its transition from more than three decades under federal control to the Sarawak government.
This handover of regulatory authority marks a major milestone under the Malaysia Agreement 1963 (MA63), as it fulfills Sarawak's push to restore its constitutional authority over all ports and harbours within its territory.
The Sarawak government is Bintulu Port Holdings’ largest shareholder with a collective 41.71% stake held through the State Financial Secretary Sarawak (26.67%) and Equisar Assets Sdn Bhd (15.04%).
Higher operating expenditure, fuel costs weigh on 2Q
Bintulu Port’s net profit for the second quarter ended June 30, 2026 (2QFY2026) fell 14.62% to RM29.66 million from 2QFY2025's RM34.74 million, as an increase in revenue was offset by higher operating expenditure and fuel costs.
Revenue rose 10.65% to RM215.56 million from RM194.82 million on higher contribution from BPSB due to increased liquefied natural gas (LNG) cargo handling and vessel calls, as well as higher throughput from Biport Bulkers Sdn Bhd’s spot and term activities.
A second interim dividend of three sen per share or a total of RM13.8 million was declared, to be paid on Oct 8. This brings dividend payout for the first six months of FY2026 (1HFY2026) to six sen per share, the same as 1HFY2025.
The group's net profit for 1HFY2026 slipped 4.68% to RM60.17 million from RM63.12 million, largely due to higher operating costs and a drop in other income, while revenue rose 9.46% to RM434.03 million from RM396.53 million.
Looking ahead, the group said LNG cargo handling and vessel calls will remain its key revenue contributors, supported by other liquid bulk cargoes at Bintulu Port and cargoes at Samalaju Port.
Bintulu Port also expects positive growth in overall cargo throughput for 2026.
Shares of Bintulu Port were last traded at RM5.50, giving the group a market capitalisation of RM2.53 billion.