Cargo Handlers Limited Reports Dip in Q1 Profit

• For the first quarter ending December 31, 2018, Cargo Handlers Limited (CHL) reported a net profit of $24.5Mn  (EPS: $0.07),  representing a 39.3% decline relative to the $40.3Mn reported one year prior.

 

• While there was a 21.1% increase in revenue, due to increased cement thru-put across the port coupled with increased income generated from home-porting cruise vessels, the company’s performance was curtailed by a significant increase in expenses.

 

• In particular, the company’s operating costs for the period was $74.2Mn, up 80% when compared with the corresponding period in 2017.   The company attributes this increase in costs to a $23.6Mn exchange loss on its US dollar investments.

 

• CHL stock price has lost 0.4% of its value year to date and currently trades at a P/E of 37.4x earnings which is above the Junior Market average of 31.5x.

 

(Source: CHL Financials)