US$12.9-million Q1 revenue for TransJamaican Highway

Business

US$12.9-million Q1 revenue for TransJamaican Highway

BY ABBION ROBINSON
Business reporter
robinsona@jamaicaobserver.com

Wednesday, May 20, 2020

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TransJamaican Highway Ltd (TJH) on Wednesday last reported a revenue of US$12.9 million for the quarter ended March 31, 2020. This represents a US $200,000 increase, despite the impact of low traffic due to the measures implemented by the Government in the fight against the COVID-19 pandemic.

“Like many others across the island and around the world, our company has also been affected by the battle against the corona virus. We have observed a decline in our traffic numbers since March 13, 2020 when the closure of all schools across the country was announced by the Jamaican Government,” Managing Director Thierry Parizot stated in the report to shareholders.

“This pandemic has brought many uncertainties including how soon it will be under control and what additional measures may be required by the authorities to help control its spread. In light of this, we anticipate that this impact on our traffic will continue into the next fiscal quarter, but it is not possible at this stage to establish new objectives. The company will continue to monitor the traffic and we are putting measures in place to review cost across our operations in order to minimise the financial impact of this pandemic,” he continued.

According to him, despite this context, on April 1, Fitch Rating Agency renewed the initial rating of TJH (BB-), having regard to the financial strength of the company.

For the three-month period under review, TJH achieved a net profit of US$2.3 million, reflecting an increase of US$700,000, compared to the US$1.6 million for the corresponding period in 2019. This 43 per cent increase resulted primarily from deferred tax credits recognised during the period.

JHT also incurred operating expenses of US$8.6 million for the period under review. This four per cent increase, according to Parizot, was primarily due to increases in the operator's monthly fixed fee and in the amortisation recognised on intangible assets offset by a decrease in repairs and maintenance cost.

Total assets at the end of the quarter under review stood at US$329.1 million, an increase of US$36.9 million when compared with the US$292.2 million recorded for the year ended December 31, 2019.

The TransJamaican Highway initial public offering in February was the largest in the country's history with eight billion shares, which was upsized to 10 billion shares a result of oversubscription.


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