CHL posts 22% decline in first quarter net profit

February 12, 2021

Cargo Handlers Limited (CHL), for the three months ended December 31, 2020 reported revenue of $81.71 million, 6% lower than the $87.11 million booked in 2019. The company noted, “containerized cargo volumes continue to be negatively influenced by the effects of the global pandemic. Furthermore, there were no cruise homeport activities during the quarter with a timeline for the resumption of cruise vessel sailings remaining elusive so far.”

Cost of sales closed at nil (2019: $1.70 million). As a result, gross profit amounted to $81.71 million compared to $85.40 million in the prior comparable period.

Other income totalled $173,568 (2019: $75,000,whilst gain on exchange totalled $595,768 relative to the $1.10 million reported a year prior.

Administrative expenses decreased 4% to close at $6.19 million (2019: $6.47 million), while other operating expenses decreased by 0.5%, amounting to $38.56 million for the period relative to $38.74 million in 2019. Total expense for the quarter amounted to $44.75 million compared to $45.22 million for the corresponding period in 2019.

Operating profit fell by 9% from $41.36 million in 2019 to $37.73 million in 2020. Finance costs over the three month period declined 40% to close at $314,140 compared to the $522,655 reported in 2019. Interest income booked during the first quarter amounted to  $326,119 relative to $271,684 for the corresponding quarter in 2019, representing a 20% increase year over year.

Profit before taxation fell by 8% to close the period at $37.74 million (2019: $41.11 million). Taxes of $9.89 million (2019: $5.20 million) were accrued during the period, thus net profit amounted to $27.86 million (2019: $35.91 million).

Consequently, earnings per share (EPS) for the quarter amounted to $0.07 compared with $0.09 for the corresponding period of last year. The trailing EPS amounted to $0.24. The numbers of shares used in the calculations are 416,250,000 units. The stock price closed the trading period on February 11,2021 at a price of $8.00 with a corresponding P/E ratio of 33.44 times.

CHL stated, “We cautiously approach the new calendar year undaunted by the challenges created by a pandemic that continues to foreshadow our short to medium-term plans. We are confident in the ability of the team we have at Cargo Handlers to safely navigate our way through these challenges while actively pursuing emerging opportunities that complements our core business and adds value for our shareholders.”


Balance Sheet at a Glance:

For the three months ended December 2020, assets totalled $590.75 million relative to $555.20 million as at December 31, 2019. The 6% increase in total assets was largely due to ‘Investments’ ending at $104.25 million (2019: nil).

Equity attributable to stockholders of parent amounted to $536.25 million (2019: $500.35 million) with book value per share amounting to $1.29 (2019: $1.20).



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