Jamaican port operator Kingston Wharves Limited (KWL) experienced flat revenues and profit for the March quarter with its logistics services division exhibiting the strongest performance.
For the quarter under review, KWL achieved consolidated revenues of J$2.3 billion, a two per cent or J$44 million increase over the comparable period in 2022. Net profit attributable to shareholders ended the quarter at J$684 million, up two per cent relative to 2022.
Earnings per share (EPS) for the period amounted to 47.79 cents, compared to 46.89 cents last year. KWL’s terminal operations division the larger segment of the group, contributing 70 per cent of overall revenues, generated operating revenue of J$1.8 billion for the quarter, down one per cent from 2022.
Divisional operating profits declined by eight per cent from J$626 million last year to J$574 million in the review quarter. The operating performance was mainly affected by inflationary increases in operating costs due to general macroeconomic factors and a marginal decrease in container volumes.
In spite of this, KWL’s competitive position continues to be strong with chairman Jeffrey Hall explaining, “the volumes of cargo that is handled will be affected by the impact of interest rates and inflation on consumer and business confidence.’’
He is excited about the performance of the logistics services division.
Strong division performance
The KWL logistics services division generated revenues of J$743 million, an increase of J$69 million over the prior year. Divisional operating profits increased by J$53 million relative to 2022 from J$173 million to J$226 million in March 2023.
“The strong performance of this division is primarily due to an increase in third-party logistics solutions arising from onboarding of new clients,” Hall pointed out adding, “KWL is benefiting from its position as a lead logistics provider with a suite of offerings including warehousing and delivery of cargo for domestic and regional markets through its purpose built facilities and integrated technology platforms.”
The company offers customised logistics services to customers in a range of sectors spanning telecommunications, the automotive trade and manufacturing.