Reflecting the ongoing impact of the COVID-19 pandemic, Arawak Port Development Company (APD) revealed that its total revenue and net income were eight percent lower in the 2021 financial year compared to the previous year, but was nonetheless 56 percent higher than what was budgeted.
However, looking ahead at the 2022 financial year, APD has projected it will return to pre-pandemic volumes in the first quarter of this year.
In its 2021 annual report, APD states it processed 118,962 inbound/outbound twenty-foot equivalent units (TEUs), which was eight percent lower than the 129,694 units processed in 2020 and 17 percent lower than pre-pandemic volumes, which were at 131,734 TEUs in 2019.
“In the 2021 financial year, APD exceeded budgeted net income projections. Budgeted net income was $5,830,746, while actual net income for 2021 was $6,671,578, which is $840,833 or 14 percent more than budgeted,” the annual report states.
“The company’s total revenues for 2021 were $28,774,831 (2020: $31,159,991), which is $2,385,060 or eight percent lower than the prior year. Net income for 2021 totaled $6,671,578 (2020: $7,229,908) or eight percent lower than the prior year. This was largely attributable to the ongoing impact of COVID-19 on our local economy.”
In the coming year APD has a more optimistic outlook, only projecting a one percent decrease in gross revenue for the 2022 fiscal year with a $28,774,831 target.
“Net income is projected to be approximately $6,207,570 or approximately $464,008 less than the 2021 actual net income of $6,671,578. The decline in revenues, net income and volumes are solely attributable to the negative impact of COVID-19 on our local economy, especially our tourism sector. Our 2022 fiscal year budget assumes that volumes would start to recover to pre-COVID-19 levels in the first quarter (Jan – Mar) of 2022. Our net income is currently 56 percent or $741,664 over budget as of September 30, 2021. This is mainly attributed to an increase in terminal handling fees and stevedoring fees associated with cargo projects during the year,” APD states.
“Ongoing projects currently include Nassau Cruise Port and downtown redevelopment, the US Embassy, GoldWynn condo-hotel and residences, The Pointe hotel (substantially complete), Sandals resort renovations, Albany resort and Hurricane Hole Marina. All these projects are in progress. Management remains extremely conservative and yet optimistic on the Atlantis Royal Towers renovations, South Ocean Resort and the Palm Cay project. Due to COVID-19 our FY22 budget assumed the containers would trend below the pre-COVID-19 volumes, until at least first quarter 2022.”
Noting that for at least three-thirds of the Bahamian population, Nassau Container Port sits at the top of the supply chain, APD Chairman Mike Maura said its health and growth remain top priorities for shareholders and Bahamians in general.
“Doubtless, going forward, the challenge for APD is the need to fast track to normalcy and exceeding it. The theme for this 2020/2021 report is well chosen and defines the way forward to seize new opportunities and position to confront future shocks: ‘Readiness, Reevaluation, Re-invention: 3 Rs of Retaining & Increasing Value Post-Pandemic’,” he said.
“It is my hope that all stakeholders will collaborate in and flesh out this thought to become a blueprint for the future development of APD and its Nassau Container Port and inland freight terminal, GFT. Cautiously, I say that the sea of fortune seems to be offering tides of promise and hope. Our tourism sector reports robust hotel occupancy, strong airlift and cruise is roaring back. Signs of commerce are all around, our children are in school and employment numbers are significantly improved. These are all indicators of positive, future, fiscal prosperity for APD and our communities.”
The post APD projects return to prepandemic volumes by end of 2022 Q1 appeared first on The Nassau Guardian.
source https://thenassauguardian.com/apd-projects-return-to-prepandemic-volumes-by-end-of-2022-q1/
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