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(Alliance News) - Mercantile Ports & Logistics Ltd has said on Thursday it expects revenue for 2021 to be below market expectations, in light of "hardship" caused by the Omicron variant.
Shares in the Navi Mumbai, India-based port operator fell by 10% to 24.00 pence each in London on midday Thursday.
The company said that annual revenue will "significantly exceed" 2020's revenue of GBP745,000, but will fall short of market estimates. In the first half of 2021 alone, Mercantile brought in GBP850,000.
Mercantile said that the strict lockdown measures in India due to the Omicron Covid-19 variant had hindered the "good progress" in sales that was being made in its final quarter. The lockdown measures had delayed contracts due to be signed in December, and impacted cargo movements.
Despite the setbacks, Mercantile did manage to sign a number of contracts and generated revenue from its coal jetty for the first time, as well as starting construction on new warehouses for two new customers. It also received positive customer feedback on a smooth launch of its Mumbai Trans Harbour Link barge project.
The outlook for the coming year is "cautious", the company has said, as it hopes for the removal of restrictions.
"Having made progress and built momentum after the easing of restrictions from the Delta variant, it was disappointing for this momentum to stall with the emergence of the Omicron variant. However, the Company is well placed to make up lost ground and the recent achievements by Tata Daewoo demonstrate exactly what our facility can deliver. We expect to be able to evidence this further this year," said Chief Executive Officer Jay Mehta.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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