appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Denise Tsang

Hong Kong-based CK Hutchison Holdings has revealed the “forced termination” of operations at two strategic Panama Canal ports shaved 1 per cent off overall throughput in the first half of this year, even as the overall port portfolio performed better than a year ago.
In its half-year financial results released on Thursday, the Li Ka-shing family-backed conglomerate for the first time quantified the impact of losing the ports after the Panama government nullified an operating contract and then took over the assets in late February.
The conglomerate’s net profit from recurring operations grew by 7 per cent to HK$12.58 billion in the first six months of this year compared with the same period in 2025.
Including a one-off gain of HK$14.22 billion largely from selling telecom assets, the net profit skyrocketed to HK$26.80 billion in the first half of 2026 from HK$852 million a year ago.
Overall throughput fell by 1 per cent year on year to 43.6 million TEUs, or twenty-foot equivalent units, in the six-month period, compared with 44 million TEUs in the first half of 2025.
“An 8 per cent growth in storage income mainly contributed by Oman and Pakistan was fully offset by a 1 per cent reduction in overall throughput as a result of reduced volume from Panama operations following their forced termination in late February 2026,” it said in a statement.
Excluding Panama, throughput jumped by 3 per cent year on year, fuelled by terminals in Shenzhen’s Yantian, Shanghai and other facilities in Asia.
CK Hutchison said it also saw a slight benefit from the Middle East conflict, despite significant disruptions to shipments via the Strait of Hormuz.
“The halt in quayside activities at the ports in the UAE [United Arab Emirates] was more than offset by additional ad-hoc transshipment volumes at Sohar, a deep‑seaport located in Oman,” it said.
Despite the loss in Panama, the port business performed well. Earnings before interest, taxes, depreciation and amortisation rose by 4 per cent to HK$9.03 billion (US$1.15 billion) in the first half, and earnings before interest and taxes were 3 per cent higher at HK$6.73 billion from the same period last year.
Port revenue was 4 per cent higher at HK$24.52 billion in the first half, despite the absence of the Panama terminal contributions. The port division accounted for nearly 10 per cent of the conglomerate’s overall revenue of HK$255.39 billion during the six-month period.
“Looking into the second half, the Middle East situation remains highly unpredictable and trade tensions, including the reintroduction of tariffs by the US administration, will continue to affect global trade,” CK Hutchison said.
“Front-loaded cargoes in response to expected tariff increases will add pressure to sustained volume growth.”
Nevertheless, the group said it expected the ports portfolio to achieve earnings growth for the full year because of its geographically diversified portfolio, “favourable” mix of operations in gateway and transshipment ports, and continued focus on productivity and cost efficiencies.

The Strait of Hormuz handles about 20 per cent of global petroleum and liquefied natural gas flows, making it a critical energy chokepoint.
CK Hutchison’s dispute with the Panamanian government intensified after the country’s Supreme Court ruled in January that a contract held by Panama Ports Company (PPC), a subsidiary of the conglomerate, to operate two ports on the Panama Canal was unconstitutional.
The ruling annulled CK Hutchison’s concession to operate the Balboa and Cristobal ports, located at the Pacific and Atlantic entrances of the strategic waterway, and the Panamanian government took over the terminals on February 23.
Hutchison Ports holds a 90 per cent stake in PPC and had a 25-year concession to run the Balboa and Cristobal ports that was renewed in 2021.
The conglomerate is now seeking at least US$2 billion in damages from the Panamanian government over what it described as an “illegal takeover” of the two ports’ operations, under the rules of the Paris-based International Chamber of Commerce (ICC).
It has also initiated arbitration at the ICC’s International Court of Arbitration on grounds that the Panamanian government failed to ensure “access to property or compensation” and made inaccurate statements regarding the company and its assets.
The dispute originated from CK Hutchison’s ill-fated attempt last year to sell the ports as part of a US$22.8 billion deal covering 43 terminals in 23 countries, which triggered a high-stakes geopolitical stand-off between Washington and Beijing over control of global trade arteries.
Potential buyers of the assets originally included a consortium led by US asset manager BlackRock and Swiss-based shipping group MSC.
Eventually, the Panamanian government appointed APM Terminals, a unit of Danish giant AP Moller-Maersk, together with MSC to operate the two Panama ports.
According to an audit conducted by Panama’s comptroller in January last year, PPC generated US$3.78 billion from its operations at the Balboa and Cristobal terminals between 1997 and 2023.
Additional reporting by Cannix Yau


For China’s hi-tech IPOs, it’s Hong Kong vs the mainland – but how much does it matter?

Hong Kong secures expanded equal treatment and investment guarantees across Asean

Housing prices surge near new Huanggang Port as buyers eye ‘dual-city’ lifestyle

Hong Kong’s first 5-year plan to give firms more long-term certainty: Paul Chan

Hong Kong economy

CK Hutchison says ‘forced termination’ of Panama ports cut 1% off throughput

Cheung Kong Center II in Central. The conglomerate says overall port throughput fell by 1 per cent year on year to 43.6 million TEUs in the six-month period. Photo: Jelly Tse

Containers sit at the Balboa terminal after Panama’s government ordered the occupation of the port on February 23, 2026. Photo: AP

Hong Kong’s CK Hutchison expands Panama ports claim as losses ‘surpass’ US$2 billion

Panama Ports Company, a subsidiary of Hong Kong conglomerate CK Hutchison Holdings, claims Panama’s seizure of its port concessions have  resulted in damages of more than US$2 billion. Photo: AP

Panama Ports Company claim Panamanian authorities failed to file a response to its arbitration request by the March 13 deadline. Photo: AP

Panama⁠ president accuses CK Hutchison subsidiary of lying about arbitration response

Balboa port was taken over by Panamanian authorities in February. Photo: Reuters

Panamanian President Jose Raul Mulino has rejected the accusation and says the government is backed by international counsel. Photo: AP

News

Hong Kong

Hong Kong Economy

Despite Panama exit, port business’ earnings before interest, taxes, depreciation and amortisation up 4 per cent to HK$9.03 billion in first half


Despite Panama exit, port business’ earnings before interest, taxes, depreciation and amortisation up 4 per cent to HK$9.03 billion in first half.


CK Hutchison

Hutchison’s Panama ports deal

Li Ka-shing

Panama

CK Hutchison says ‘forced termination’ of Panama ports cut 1% off throughput

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Despite Panama exit, port business’ earnings before interest, taxes, depreciation and amortisation up 4 per cent to HK$9.03 billion in first half

Despite Panama exit, port business’ earnings before interest, taxes, depreciation and amortisation up 4 per cent to HK$9.03 billion in first half