For the quarter ending September 30, 2020, Cargo Handlers Limited reported revenue of JM$54.3 million, a result the directors attribute to a 33 per cent decline in containerised cargo handled for domestic commercial activity.
Nevertheless, the company’s management is projecting an increase in cargo flow by year-end 2021.
In statements attached to the nine-month financials, Cargo Handlers’ directors stated, “Our expectations are that the current flow of bulk and containerised cargoes, as well as our equipment-leasing segment, will continue to drive revenues for at least the ensuing three quarters; this as homeporting cruise ships are not expected to return to pre-COVID-19 levels before the end of the calendar year 2021 based on the current economic outlook.”
The directors said that the ongoing decline has been evident mostly in the hospitality sector, due to the impact of the virus.
Operating expenses for the quarter fell to JM$31.65 million, which was 20 per cent lower than in the corresponding period last year, reflecting the reduced cargo on vessels.
The resulting net profit for the quarter was JM$22.8 million before tax, or 34 per cent below the 2019 mark.
Year to date, for the nine months ended September 2020, net profit reached JM$19.78 million, down from net profit of JM$28.45 million earned in September 2019.
For the third quarter, earnings per share were JM$0.05 versus JM$0.08 in the previous year.
Cargo Handlers Cargo, on December 9, 2020, has announced the purchase of a 30 per cent stake in local cement distributor Buying House Cement Limited (BHC).
“Our expectations are that the current flow of bulk and containerised cargoes, as well as our equipment-leasing segment, will continue to drive revenues for at least the ensuing three quarters…”
The cement seller has its headquarters in the city of Montego Bay, where it has operated for 15 years selling “high-quality” Portland cement under the Anchor brand since 2006.
In the comments on the nine-month results, directors said that despite the slowdown of the tourism sector, infrastructure upgrading is in the works for Montego Bay’s airport.
They also noted that the Government of Jamaica recently announced construction projects slated for the North Coast, which should begin soon. These projects, Cargo Handlers said, will boost activities across the port in the near to medium term.