FOCOL expects challenging 2021 as it registers lower net income

After registering a nearly 20 percent drop in revenue last year, FOCOL Holdings stated it expects a very challenging fiscal year in 2021.

FOCOL Chairman Sir Franklyn Wilson said in the company’s audited financial results for 2020 that net income for the period ended September 30 was $22.99 million, compared to $27.97 million in the previous year.

“The main factors that contributed to lower net income for fiscal 2020 are the adverse impact of the novel coronavirus (COVID-19) on the Bahamian economy and the implementation of International Financial Reporting Standard (IFRS)16 leases, related to our charter agreements on five purpose-built ocean-going ships used to transport petroleum products from the US Gulf and throughout The Bahamas and Turks & Caicos Islands,” FOCOL Chairman Sir Franklyn Wilson said in the audited report.

“Because of the COVID-19 pandemic, the economic outlook for fiscal 2021 appears to be very challenging. Management is actively monitoring the financial performance of the company and will make the necessary adjustments to ensure the optimal financial performance of the
company.”

Oil prices reached a historic low in 2020 during the height of COVID-19 travel restrictions.

In its most recent economic assessment, The Central Bank of The Bahamas notes that the price of crude oil remained unchanged at $55.88 per barrel, amid a decrease in OPEC’s (Organization of the Petroleum Exporting Countries) production, of 0.65 million barrels per day, month on month.

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source https://thenassauguardian.com/focol-expects-challenging-2021-as-it-registers-lower-net-income/