Traffic recovers for TransJamaican Highway, but revenues slip
The impact of health and safety measures taken to limit the spread of the coronavirus (COVID-19) pandemic has been weighing on the motorway traffic for TransJamaican Highway since mid-March 2020.
The toll operator, in its latest financial report, disclosed the impact the pandemic has had on its earnings.
For the quarter ended June 30, 2020, the company posted revenue of US$8.5 million, reflecting a decrease of US$4.6 million, compared to US$13.1 million for the same period in 2019.
During the quarter, TransJamaicaican Highway recorded a net loss before tax of US$4.4 million, compared to a net loss before tax of US$0.1 million for the same period in 2019.
The result was impacted by the decline in revenue and other factors including increased spend on administrative and operating costs.
TransJamaican Highway also revealed that traffic fell for the month of March by 19.3 per cent.
The month of April saw a more significant decrease (-52 per cent 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, it was noted.
Traffic, however, recovered further in May, with the company anticipating continued improvement.
For the quarter ended June 30, 2020, TransJamaican Highway incurred operating expenses of US$8.6 million, reflecting an increase of US$0.1 million, compared to US$8.5 million for the same period in 2019.
The company also incurred administrative expenses of US$0.4 million, reflecting an increase of US$0.1 million, compared to administrative expenses of US$0.3 in 2019.
As at June 30, 2020, the company had total assets of US$327.5 million, reflecting an increase of US$35.3 million.
Share capital of US$27 million, reflecting a decrease of US$27 million, compared to US$54 million as at December 31, 2019.
Management indicated that this was due to the redemption of existing preferred share and the issuing of 2.7 billion eight per cent Cumulative Redeemable Preference Shares.