GPH.L Share News (GPH)

(Alliance News) - Global Ports Holding PLC on Wednesday reported strong start to 2020 but said it is reducing costs now as coronavirus hurt its Cruise operations.

During the three months to the end of March, the cruise ports operator said it welcomed 1.3 million passengers at its ports - excluding ports La Goulette, Lisbon, Singapore and Venice - compared to 500,000 in the first quarter of 2019.

Total revenue in the first quarter grew by 3% year-on-year to USD21.4 million form USD20.7 million, with Cruise revenue more than doubled to USD11.0 million from USD5.4 million. However, Commercial revenue declined by 32% to USD10.4 million from USD15.3 million a year ago.

Loss in the first quarter of 2020 widened to USD16.5 million form USD13.8 million the year before.

"Our successful expansion into the Caribbean caused a step change in our Cruise operations in Q1. Even though the Covid-19 crisis may have derailed this outcome since March, the evidence of this step change can still be seen in our first quarter trading," said Chief Executive Emre Sayin.

As the company's commercial ports continue to trade in line with our expectations and there are signs that cruising could slowly start in the third quarter, Global Ports said it has recently implemented a further cost saving and cash preservation programme to help ensure the business remains in a strong position throughout this crisis.

"The Covid-19 crisis continues to cause unprecedented disruption to both global economies and the global travel sector. As a result, we have taken decisive action to further reduce costs and preserve cash and we now believe that the group can withstand a scenario of no cruise ship calls until 2022 without having to raise capital," said Co-Founder & Chair Mehmet Kutman.

Global Ports shares were trading 0.4% higher in London on Wednesday at 95.20 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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