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(Alliance News) - Global Ports Holding PLC on Thursday said it was hit hard in the first half of 2020 when ports closed worldwide due to Covid-19.
The cruise port operator saw its pretax loss widen in the first half ended June 30 to USD42.8 million from USD13.8 million a year prior.
Revenue dropped only slightly to USD54.2 million from USD54.6 million the year before. However, this was due to the impact on the Nassau cruise port of IFRIC-12, an accounting rule related to the supply of public services by a private operator. Without this benefit, half-year revenue would have been USD32.2 million, down 41%.
The company saw heavy losses due to the cruise ship industry closing in the second quarter "for the first time in its history".
Global Ports said: "The Covid-19 crisis has caused unprecedented disruption to global economies and the global travel sector, and has had a significant, negative impact on the business.
"The global cruise industry effectively shut down in the second quarter of 2020, for the first time in its history and as a result our cruise ports have experienced a sharp fall in revenues.
"While our Commercial ports are exposed to global economic growth and macro-economic factors which have been impacted by Covid-19, trading at these ports in the second quarter has been broadly in line with first quarter trading."
Global ports saw its adjusted earnings before interest, tax, depreciation and amortisation fall sharply by 61% to USD13.5 million, down from USD34.8 million a year prior.
Global Ports said that central costs were reduced by 22%, reflecting the quick actions taken in the second quarter.
"The cost reduction program has reduced costs by about two thirds compared to the first quarter 2020, the full impact of which will be visible during the second half of this year," the company said.
Global Ports decided to suspend the dividend until the cruise ship industry recovers.
In the short term, Global Ports said the outlook remains highly uncertain despite some cruise lines recently commencing sailings again.
Global Ports said: "Looking into 2021 and beyond, it is very encouraging to see strong booking trends across all regions. While on-board distancing measures will mean cruise ship occupancy levels are likely to be down in 2021, the level of continued consumer demand is encouraging.
"Despite these signs, no material revenue and hence no material improvement compared to the second quarter of 2020 is expected in the cruise segment for the remainder of the year."
Global Ports shares were down 2.9% at 97.40 pence each on Thursday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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