CHL records an 8% decline in year-end net profit

Cargo Handlers Limited (CHL) for the year ended September 30, 2017 reported revenues of $320.83 million, 4% higher than the $307.77 million booked in 2016. However, revenue for the quarter contracted 11% to $65.39 million relative to $73.40 million documented for the corresponding quarter of 2016. The company noted, “this result was due to a combination of factors, particular decreases this period in container thru-put and exchange gain when compared to the same period in 2016.” Other income fell 76%, moving from $14.31 million in 2016 to $3.42 million. Notably, CHL booked a gain on exchange of $2.36 million compared to nil for 2016.

Total expenses for the year amounted to $162.83 million compared to $145.14 million reported for 2016. Of this, administrative expenses increased 44% to close at $18.88 million (2016: $13.11 million), while other operating expenses increased by 9%, to close at $143.95 million for the period relative to $132.11 million in 2016.

As such, Operating Profit declined year over year by 7% from $176.93 million in 2016 to $163.79 million, while for the quarter there was a 16% contraction from $34.50 million to $29.12 million. Finance costs rose 93% to close at $1.33 million (2016: $691,029), while interest income rose 4% to $2.47 million on from $2.36 million in 2016. Additionally, CHL booked loss on exchange of $1.66 million compared to nil in 2016.

Consequently, profit before taxation declined 9% to close the year at $163.26 million (2016: $178.60 million). Following taxes of $22.06 million (2016: $24.55 million) which accrued during the year, net profit amounted to $141.20 million (2016: $154.05 million). Net profit for the quarter fell 14% to $25.27 million compared to $29.53 million for the quarter ended September 30, 2017.

Consequently, earnings per share (EPS) for the 2016 financial year amounted to $0.34 (2016: $0.72), while the EPS for the fourth quarter was $0.06 (2016: $0.07). The numbers of shares used in the calculations are 416,250,000 units.

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, “the first quarter of the new Fiscal Year will herald the start of 2017/18 Winter Tourist Season and with it, an upsurge in cruise vessel traffic.” “The seasonal influx of the cruise homeport vessels will once more positively impact the activities within the Stevedoring Department over the ensuing months and we stand ready to provide our valued partners with the required logistics support.”

 

Balance Sheet at a glance:-

Assets totalled $406.32 million as at September 30, 2017 relative to $303.84 million a year prior. The increase in total assets was largely due to the growth in ‘Cash’ by $28.80 million to total $252.48 million (2016: $223.69 million). ‘Property, Plant & Equipment’ and ‘Related Companies’ also contributed to the overall increase in CHL’s asset base with growths of 29% and 153% respectively. ‘Property, Plant & Equipment’ and ‘Related Companies’ both closed the 2017 financial year at $62.71 million (2016; $48.57 million) and $23.48 million (2016: $9.27 million) respectively.

Equity attributable to stockholders of parent amounted to $350.41 million (2016: $301 million) with book value per share amounting to $0.84 (2016: $0.72).

 

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2017-11-13T16:18:18+00:00