KINGSTON: Kingston Wharves Limited (KWL) expects aggressive growth for the remainder of its financial year amid posting $242.6 million net profit after tax for its second quarter ending June 2015 or 10 per cent higher than a year earlier.
The wharf also started offering logistic services to a key unnamed tourism client reflecting the growth in its logistic tiered services.
“The ensuing quarters will see a further concentration on our aggressive growth strategies, which we pursue with the dual goal of increasing value to our shareholders and exceeding our customers’ expectations. We have made significant strides in this regard and thank all our stakeholders for their continued confidence and support,” stated chairman Jeffrey Hall in statements accompanying the financials.
Revenues hit $1.1 billion in the quarter up from $927.5 million a year earlier. Among the benchmarks of the quarter was the provision of ‘Third Party Logistic’ services to a “major” international player in the local tourism industry. Activities at KWL supported the management of goods in their service-supply-chain and afforded scaled distribution and transfers to the company’s facility, based on demand, stated Hall.
Trans-shipment container volumes handled at the KWL Terminal, during the six months period, increased by 20 per cent over the prior year, while domestic container volumes and motor units grew by a further 22 per cent and 7.0 per cent respectively.
“The group’s continued positive performances are being realised from its strategic positioning as a regional centre for seaport, logistics and valueadded services,” Hall explained.
For the six months ending June 201,5 profit totalled $431.2 million on total revenues of $2.1 billion. Over the same period the segment results showed that its terminal operations generated $580 million in operating profit on $1.8 billion in external operating revenues; its cold storage services generated $21.5 million in operating profit on $45 million in revenues; and its security services generated $16.1 million in operating profit on $228.7 million in revenues.
The Group’s results also continued to be positively impacted by a focused cost management programme which is reflected in the marginal increases in operating and administrative expenses and steady gross profit margins when compared to the comparative period.
The upgrade will occur in three phases over a number of years. Phase one involves building a modern 24-hour logistics complex with modular warehouse space, the acquisition of gantry cranes, the closure of Third Street, the relocation of berth 7 warehouse to a newly refurbished facility, the relocation of transshipment and domestic car parks, and the demolition of on-dock warehouse and operational buildings.
The second phase is aimed at handling larger post-Panamax vessels including extending the berth by 50 feet, dredging along the berth to over 15 metres, along with the installation of new cranes.
Phase three includes expanding the port and motor vehicle transshipment operations to drive TEU throughput.
