By Andrew Green, Staff Reporter 
An aerial view of Kingston Wharves facilities. - File
THE KINGSTON Wharves Limited (KWL) Group earned $127.7 million in profit after tax for the nine months ended September 30, 2004.
This was $72.7 million or 132 per cent above the corresponding period's profit in 2003, according to the company's unaudited financial statement. Earnings per stock unit for the nine-month period was 11.9 cents compared to 5.1 cents for the similar period of last year.
Net profit attributable to stockholders amounted to $40.9 million for the September quarter. Restated results for the similar quarter in 2003 showed net profits of $7 million. "There are many challenges ahead," Grantley Stephenson, KWL's chairman, said of the Group's operations, "but we see light at the end of the tunnel as the company moves forward to return to a higher level of profitability."
The main activities of the company and its subsidiaries comprise the operation of public wharves, port security services and the provision and installation of cold storage facilities.
The year 2003 was a grim one for Kingston Wharves, with control shifting from Grace, Kennedy into the hands of a consortium after a bitter battle. This culminated in a transaction during January of this year, when National Commercial Bank bought 43.97 per cent of the KWL shares from Grace for $611.3 million.
During the third quarter of 2003 the group's financial performance was impacted adversely by declining volumes and by several non-recurring expenses. The main one was the payment of redundancy to the staff of Harbour Cold Storage Ltd.
"The group has been refocusing its attention on growth and development by committing finances for equipment acquisition, marketing research, staff training, information technology and security enhancements," said Mr. Stephenson. His statement accompanying the financial results, said the group consolidated its financial position in the third quarter by continuing to achieve steadily improving results.
AFTER TAX PROFITS
The company acquired a US$3 million Gottwald crane during the quarter to boost its capacity to lift heavy equipment. Two container stackers were also acquired for multi-storey storage of shipping containers. "Domestic tonnages of 448,632 tons handled in this quarter showed a marginal improvement of 2.4 per cent over the previous quarter," he said. "The nine-month period's performance of 1,327,268 tons showed a slight decline of 2.8 per cent when compared to the corresponding period of 2003."
The group's main operating subsidiary, Kingston Wharves Limited, recorded after tax profits of $96.2 million in the September quarter. This was 70.8 per cent above the $56.3 million earned during the corresponding period last year.
ADDITIONAL CONTAINER VESSELS
With a capital outlay of $260.8 million since the beginning of the year, this company is positioning itself to handle additional container vessels. The investment is intended to improve the efficiency of its operations to attract new shipping lines.
Kingston Wharves Limited earned pre-tax profits of $150 million for the nine-month period. For the nine-month period, Harbour Cold Stores continues to show favourable results and is on target to exceed the goals set for the year, Mr. Stephenson said. It earned pre-tax profits of $41 million.
Security Administrators Limited provides the port with security services. Mr. Stephenson said profits have been flat, "as a result of the downward trend in tonnages for the year to date and the higher costs of guard services."
Future expansion within the port is being considered for Security Administrators Limited, he said. This subsidiary earned $9 million pre-tax profits for the nine-month period.
