LONDON: Arawak Port Development Company (APD) revealed it had exceeded profit projections for its 2015 financial year by 33 per cent, aided by its first-ever tariff increase and rises in storage and rental revenues.
The BISX-listed operator of the Nassau Container Port told Tribune Business that top-line revenues for the year to end-June 2015 had beaten its forecasts by 7 per cent, while holdings costs relatively flat against budget.
“Overall earnings exceeded Budget by about 33 per cent,” said Dion Bethell, APD’s chief financial officer. “Our budgeted earnings were $5.07 million, but total comprehensive income was $6.753 million. That was a $1.682 million, or 33 per cent, difference.”
Mr Bethell said the port’s better-than-expected profit performance was “largely driven” by significant increases in key revenue streams, with landing fees rising by 27.7 per cent year-over-year – from $9.515 million in 2014 to $12.152 million now.
Michael Maura, APD’s chief executive, confirmed that the rise had been aided by the $28 per TEU tariff increase, the first in the port’s history, since it began operations in November 2011. APD’s financials thus reflect a full year of the increase, introduced in June 2014, which took TEU tariffs from $120 per container to $148.
Mr Bethell, meanwhile, said the company was “somewhat surprised” by the 38.6 per cent year-over-year increase in storage fees to $2.916 million compared to $2.104 million the year before.
He explained that these fees are dictated by the importer, and whether they allow their containers and cargo to remain at the Port “beyond the allotted time”.
When this happens, APD starts levying fees, as expensive equipment is required to move shipping containers whenever operators need to access others placed in a stack on the dock.
This can lead to containers being moved up to 10 times’ a day – an expensive undertaking, especially of importers and their clients are tardy in moving them.
Mr Bethell also confirmed that APD benefited from a full year of rental revenues at its Nassau Maritime Centre headquarters on Arawak Cay, which was only used for three months of its 2014 financial year.
Although the year-over-year comparatives are somewhat misleading, APD’s rental or ‘sublease’ revenues jumped by 59 per cent – from $841,067 to $1.338 million.
The various increases drove a 15.2 per cent rise in APD’s total revenues, from $25.758 million to $29.669 million year-over-year. Expenses were much flatter, growing by just 4.3 per cent to $17.4 million, compared to $16.677 million in 2014.
As a result, earnings before interest and finance costs jumped from $6.161 million to $8.964 million, an increase of 45.5 per cent.
Shipping activity at Port Qasim on February 11
KARACHI: Three ships namely, Glen Canyon, Al-Salam- II and TSM Pollux carrying Containers, Gas oil and Palm oil were arranged...
