November 14, 2019
Cargo Handlers Limited (CHL), for the year ended September 30, 2019, posted a 3% improvement in revenue year over year to $366.44 million versus $355.74 million booked for 2018. Revenue for the quarter contracted 7% to $70.59 million versus $75.63 million booked for the same quarter of 2018. CHL noted, “the movement was due mainly to the absence of Cruise Line home-porting operations in Montego Bay during this period. All other stevedoring activities remained consistent with the results achieved in the corresponding period last year. Cement cargo through-put continued to record growth during the period while container volumes remained static in the corresponding period last year.”
Cost of sales for year amounted to $8.20 million, in contrast to nil for the prior year. As such, CHL recorded gross profit of $358.24 million (2018: $355.74 million).
Loss on exchange closed at $2.51 million relative to a gain of $20.51 million. CHL noted, “we expect these extraordinary exchange fluctuations that affected our US denominated assets to correct over time.” Other income for the year amounted to $600,000 (2018: nil).
Administrative expenses recorded a 42% increase to $31.06 million (2018: $21.85 million), while other operating expenses reflected an increase of 6% to $171.83 million (2018: $162.03 million).
Consequently, CHL recorded an operating profit of $153.44 million, down 20% compared with $192.36 million reported for the previous year end. Operating profit for the fourth quarter closed at $35.06 million (2018: $45.33 million)
The company reported finance cost of $2.47 million for the period; this compares to the finance cost of $1.75 million for the same period in 2018. Interest income for the year amounted to $1.27 million (2018: $1.25 million).
Profit before taxation decreased to $152.24 million versus $191.86 million booked in 2018. While for the quarter, pre-tax profits closed at $34.71 million (2018: $45.25 million).
Year-end net profit fell by 19% to $133.48 million (2018: $165.23 million) following taxation $18.76 million (2018: $26.63 million). Net Profit for the quarter decreased by 17% to $31.08 million in 2019 relative to $37.45 million in 2018.
Earnings per stock unit for the nine months amounted to $0.32 (2018: $0.40).The EPS for the fourth quarter was $0.07 (2018: $0.09). CHL stock price closed the trading period on November 14, 2019 at a price of $10.50.
CHL noted, “during the quarter under review, Cargo Handlers Limited made an investment in additional equipment of new petroleum tankers and rigid tank-trucks to support our logistics business with Bulk Liquid Carriers Petroleum Transport (BLCPT). This procurement of new equipment will also positively impact CHL’s revenue derived from Lease Income and fulfil commitments to modernize our fleet for BLCPT contracted partners.”
Additionally, CHL indicated, “we now look forward to the approaching Winter Season, and anticipate a strong performance with cruise ship arrivals, home-porting vessels, and increased containerized cargo. Our management and dedicated team of Stevedores are prepared to meet and all challenges and remain committed to providing the highest levels of service to all our stakeholders. We would like to thank our shareholders for their continued confidence in the Company as we look forward to exceeding your expectations in the year ahead.”
Balance Sheet at a Glance:
As at September 30, 2019 ‘Total assets’ rose by 6% or $31.85 million to $545.22 million (2018: $513.37 million). This increase was primarily driven by ‘Receivables’ ,which amounted to $127.95 million (2018: $76.14 million).
Shareholders equity as at September 30, 2019 amounted to $467.06 million (2018: $423.50 million) resulting in a book value per share of $1.12 (2018: $1.02).
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