CHL reports 10% increase in nine months net profit

Date: August 14, 2018 

Cargo Handlers Limited (CHL) for the nine months ended June 30, 2018 reported revenues of $280.11 million, 10% higher than the $255.44 million booked in 2017.  Revenue for the quarter also increased by 25% to $92.15 million relative to $73.83 million documented for the corresponding quarter of 2017. The company noted, “The results are indicative of sustained positive influence of the western region’s commercial and construction sectors”. The Company however booked no other income for the period relative to the $3.42 million recorded in 2017. Notably, CHL booked a gain on exchange of $3.60 million compared to $2.23 million for the corresponding period in 2017.

Total expenses for the nine months amounted to $136.67 million compared to $126.43 million for the period ended June 2017. Of this, administrative expenses increased 19% to close at $17.06 million (2017: $14.27 million), while other operating expenses increased by 7%, amounting to $119.61 million for the period relative to $112.15  million in 2017. According to the company, this increase was as a result of, “corresponding salaries from increased activities.”

As such, Operating Profit increased year over year by 9% from $134.67 million in 2017 to $147.04 million, while for the quarter there was a 36% increase from $36.30 million to $49.35 million. Finance costs rose 40% to close at $1.40 million (2017: $999,591), while interest income declined by 46% to $971,629 million on from $1.78 million in 2017.

Profit before taxation increased 10% to close the period at $146.61 million (2017: $133.79 million). Following taxes of $18.83 million (2017: $17.86 million) which accrued during the period, net profit amounted to $127.78 million (2017: $115.93 million). Net profit for the quarter increase 33% to $41.80 million compared to $31.35 million for the quarter ended June 30, 2017. CHL highlighted, “These activities continue to support the local shipping industry and by extension, our cargo handling services.”

Consequently, earnings per share (EPS) for the nine months amounted to $0.31 (2017: $0.28), while the EPS for the third quarter was $0.10 (2016: $0.08). The trailing EPS amounted to $0.37. The numbers of shares used in the calculations are 416,250,000 units. Notably, CHL closed the trading period on August 13, 2018 at a price of $10.89.

Balance Sheet at a glance:-

Assets totaled $488.01 million as at June 30, 2018 relative to $423.29 million a year prior. The increase in total assets was largely due to the growth in ‘Cash’ by $86 million to total $322.73 million (2016: $236.72 million).

Equity attributable to stockholders of parent amounted to $434.76 million (2016: $366.35 million) with book value per share amounting to $1.04 (2017: $0.88).

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2018-08-14T13:52:46+00:00