Transjamaican revenues still down

Toll collections fell 13.8 percent in 2020 versus an increase of 1.6 percent in 2019 over 2018 for Transjamaican Highway, resulted in US$45.38 million in tolls collections compared to $53.29 million in 2019.
The company, in its annual report for 2020 in commenting on the decline in traffic on Highway2000, states, the “effects of the health measures implemented are still being felt on our traffic at the start of 2021, traffic being falling 9 percent below for January and February when compared to the same period of 2020, which were not impacted by the pandemic. We are, however, optimistic that greater levels of recovery will be recognized as the traffic at the end of March 2021 was 6.8 percent above that of March 2020, when the pandemic first hit.” While the directors sound optimistic, the March 2021 recovery does not look exciting and would represent a decline of 11.5 percent compared with traffic for 2019 that would make the company worse off than in January and February this year, with the fall of 9 percent versus the first two months of 2020 with increases of 2.1 percent.
Last year the directors stated that “the first two months of 2020 were marked by a 2.1 percent increase in our toll transactions compared to the same period last year. The decrease for March was 19.3 percent, April 2020 saw a more significant decrease of 52 percent when compared with April 2019 due to additional restrictions introduced, such as the lockdown of the parish of St Catherine, which started on April 15. The end of this confinement on May 1 was immediately followed by an increase in traffic on the motorway, as the decline fell to 34.2 percent compared to May 2019.”
“The trend observed for June 2020 is down 17.3 percent when compared to the previous year, confirms a gradual recovery in traffic and is anticipated to continue in the next weeks.”
The decline in traffic in the second quarter of 2020 was 34.5 percent compared to the previous year, the company had reported. For the three months ended March 2020, the Company generated revenues of US$12.9 million, reflecting a mild increase over the US$12.7 million earned for the same period in 2019. What seems clear from the latest report from the company is that revenues should be down in the first quarter in 2021 to around US$11.5 million, but the second quarter should experience a nice bump from a depressed second quarter in 2020 that delivered just US$8.5 million in revenues.
THJ reported a US$1.87 million loss for the year to December 2020, compared to a profit of US$8.3 million helped by a tax credit of US$21.4 million in 2019. The 2020 results saw a US$5 million reduction in operating expenses and a fall of nearly US$16 million in finance cost. Despite the loss, the company still managed to generate a positive cash flow of just over US$11 million for 2020. The results for 2021 should end with a breakeven position of about US$1 million in profit.
The company last traded on the Jamaica Stock Exchange at $1.34 on Friday.

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