CHL records a 9% decline in nine months net profit

Cargo Handlers Limited (CHL) for the nine months ended June 30, 2017 reported revenues of $255.44 million, 9% higher than the $234.37 million booked in 2016. However, revenue for the quarter contracted 9% to $73.83 million relative to $81.07 million documented for the corresponding quarter of 2016. The company noted, “this result was due in part to the absence of any project cargo thru-put this period as well as a reduction in Exchange Gain.” Other income fell 67%, moving from $10.46 million in 2016 to $3.42 million. Notably, CHL booked a gain on exchange of $2.23 million compared to nil for the corresponding period in 2016.

Total expenses for the nine months amounted to $126.43 million compared to $102.40 million for the period ended June 2016. Of this, administrative expenses increased 41% to close at $14.27 million (2016: $10.13million), while other operating expenses increased by 22%, amounting to $112.15 million for the period relative to $92.26 million in 2016. According to the company, “we experienced some inefficiency this period as  a result of adjustments in some vessels’ scheduling that negatively impacted total  expenses which was up $7M above the corresponding quarter last year; administration charges and salary related expenses accounted for the majority of this total.”

As such, Operating Profit declined year over year by 5% from $142.43 million in 2016 to $134.67 million, while for the quarter there was a 32% declined from $53.07 million to $36.30 million. Finance costs rose 89% to close at $999,591 (2016: $529,223),  while interest income rose by 13% to $1.78 million on from $1.58 million in 2016.

Profit before taxation declined 7% to close the period at $133.79 million (2016: $143.48 million). Following taxes of $17.86 million (2016: $18.95 million) which accrued during the period, net profit amounted to $115.93 million (2016: $124.52 million). Net profit for the quarter fell 32% to $31.35 million compared to $46.15 million for the quarter ended June 30, 2016. CHL highlighted, “despite the seasonal decline in vessel calls and its negative impact on revenues this period, we are encouraged by the significant increase in the number of cruise vessel visits when compared to last year’s results. Against this background of competition from Falmouth and Ocho Rios, this is a welcomed development that highlights Montego Bay’s importance in marketing Western Jamaica as both an emerging commercial and desirable recreational destination. It is CHL’s intention to capitalize on this dynamic by seeking out opportunities that will continue to enhance the Port of Montego Bay’s profile and complement CHL’s existing revenues streams.”

Consequently, earnings per share (EPS) for the nine months amounted to $0.28 (2016: $0.30), while the EPS for the third quarter was $0.08 (2016: $0.11). The trailing EPS amounted to $0.35. The numbers of shares used in the calculations are 416,250,000 units.

Lastly, CHL indicated, “our petroleum haulage division will, in the ensuing quarter, begin to introduce newly acquired equipment that will give us the capacity to comfortably service additional business; our management team is to be commended for their responsiveness to market trends in keeping with CHL’s strategic vision.”

 

Balance Sheet at a glance:-

Assets totaled $423.29 million as at June 30, 2017 relative to $358.88 million a year prior. The increase in total assets was largely due to the growth in ‘Cash’ by $38.31 million to total $236.72 million (2016: $198.42 million).

Equity attributable to stockholders of parent amounted to $366.35 million (2016: $322.25 million) with book value per share amounting to $0.88 (2016: $0.77).

 

 

 

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2017-08-08T20:49:00+00:00