The Nassau Container Port’s 2019 first quarter profits beat target by nine percent despite projections that full-year net income will be down by more than $1m compared to the prior year.
Arawak Port Development Company (APD), the port’s BISX-listed operator, revealed the better-than-expected bottom line for the three months to end-September 2018 – even though container cargo volumes and revenues were down – in its annual report published on November 5, 2018.
The improvement came despite APD executives adopting a “conservative” approach to budgeting and financial forecasting for the current 2019 financial year, citing numerous potential local and international headwinds to economic activity that could impact import volumes.
Besides the value-added tax (VAT) increase “curbing consumer spending for the foreseeable future”, the port operator said other development/construction projects were unlikely to fully replace the import activity associated with the rush to complete Baha Mar’s construction and full opening.
Michael Maura, APD’s chief executive, also warned that the US-China “trade war”, with both countries’ tariffs increasing the price of consumer goods, and the upward spike in global oil prices represented further challenges for the Bahamian economy and cargo volumes.
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