CHL records 13% decline first quarter profits

February 09, 2018

Cargo Handlers Limited (CHL), for the three months ended December 31, 2017  revenues of $86.57 million, a marginal  decline from the $86.99 million booked in 2016.  The company noted, “increased cruise vessel arrivals this period positively impacted our operations through additional baggage handling activities that was however offset by a reduction in the number of containers handled over the busy festive season in comparison to the comparative period in 2016.” Other income, fell 84%, moving from $3.42 million in 2016 to $544,786.

Total expenses for the quarter amounted to $41.15 million compared to $38.03 million reported for the corresponding period in 2016. Of this, administrative expenses increased 20% to close at $5.40 million (2016: $4.51 million), while other operating expenses increased by 7%, to close at $35.75 million for the period relative to $33.52 million in 2016.

As such, Operating Profit declined year over year by 12% from $52.39 million in 2016 to $45.97 million. Finance costs rose 35% to close at $336,038 (2016: $249,621),  while interest income slid 36% to $469,993 on from $728,993 booked for the comparable period in 2016.

Consequently, profit before taxation declined 13% to close the year at $46.10 million (2016: $52.870 million). Following taxes of $5.76 million (2016: $6.66 million), net profit amounted to $40.34 million (2016: $46.21 million). CHL noted, “this change was due to a relatively stable exchange rate over the previous year as well as an increase in wages impacting the cost of baggage handling services.”

Consequently, earnings per share (EPS) for the first three months of 2018 financial year amounted to $0.10 (2016: $0.11). The trailing twelve months earnings per share amounted to $0.33. The numbers of shares used in the calculations are 416,250,000 units. Notably, CHL’s stock price close the trading period on February 09, 2018 at $10.50.

The company noted, “our petroleum haulage division is poised for further growth with a new partnership with New Fortress Energy (NFE North) that commenced in September 2017. Come next quarter, we should also begin to see signs of the recent infusion of additional haulage equipment positively impacting our Equipment Leasing revenue stream.”

Lastly, CHL indicated, “we eagerly look forward to the prospects of the New Year and sincerely express our gratitude to our team member for their dedication and wish for all our stakeholders a healthy and prosperous 2018.”

 

 

Balance Sheet at a glance:-

Assets totaled $443.72 million as at December 31, 2017 relative to $394.48 million a year prior. The increase in total assets was largely due to the growth in ‘Cash’ by $40.79 million to total $272.45 million (2016: $231.66 million). ‘Property, Plant & Equipment’ also contributed to the overall increase in CHL’s asset base with a growths of 30% to close at $60.36 million.

Equity attributable to stockholders of parent amounted to $390.40 million (2016: $347.21 million) with book value per share amounting to $0.94 (2016: $0.83).

 

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2018-02-09T23:25:56-05:00