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Independent cruise port operator Global Ports swung to an annual loss as the Covid-19 outbreak had a 'significant' impact on its cruise operations.
For the twelve months ending 31 December 2019, the company reported a pre-tax loss of $13.4m compared with a profit of $8.6m on-year as revenue fell 3% to $117.9m.
Commercial revenue fell 21.5% to 54.9m and commercial segmental earnings (EBITDA) were down 26.4% to $39.1m as general & bulk cargo volumes fell 49.7%, and TEU throughput volumes fell by 15.9%.
While 2020 began well and operational results were in line with management expectations at both the Cruise and commercial divisions, the outbreak of the Covid-19 virus had had a significant impact on its cruise operations, the company said.
'With travel restrictions implemented across the world, cruise itineraries have been cancelled for a number of weeks or months and it is currently unclear when cruise activity will resume at normal levels,' it added.
'We believe that the actions taken to date (to reduce costs) will mean that even under a severe downside scenario of no cruise ships calling at our ports for the remainder of 2020 and a modest recovery at only our Caribbean ports thereafter, as well as a significant decline in container volumes at Port Akdeniz, the group will have sufficient cash resources to remain in operation and within covenant requirements at the end of April 2021,' Global Ports said.
At 9:43am: (LON:GPH) Global Ports Holding Plc share price was +6p at 62p