11th Mar 2020 13:05
(Alliance News) - Global Ports Holding PLC on Wednesday said it will suspend its dividend for 2019 while the cruise port operator waits for more visibility with regard to the coronavirus outbreak.
Shares in Global Ports were 11% lower at 160.46 pence each in London on Wednesday afternoon.
The firm explained: "The board and management team remain alert to the fact that the situation is still evolving, and the company continues to monitor the situation closely. In light of this unprecedented level of disruption to global trade and the cruise industry and the associated short term uncertainty, the board of Global Ports has decided that it is prudent and in the best interests of all stakeholders to temporarily suspend the dividend for full year 2019, until the situation becomes clearer."
For 2019, revenue is expected to fall 5.5% to USD117.9 million from USD124.8 million, with adjusted earnings before interest, tax, depreciation and amortisation expected to come in USD77.0 million. This would represent an 8.0% fall from USD83.7 million in 2018.
The company said that so far, it has seen no "meaningful impact" from the spread of the coronavirus.
Global Ports added: "Year to date at Port Akdeniz, our largest commercial port, General & Bulk volumes are up strongly year-on-year. While Container volumes, which include significant export volumes of blocked marble to China, are tracking in line with management expectations year to date. However, the marble mining industry has seen some disruption, with industry events such as marble fairs being cancelled or postponed, and this could negatively impact future volumes."
Looking to the rest of 2020, the company said it has seen an increase in reservations at its Mediterranean ports as some operators look to move their cruise ships away from Asia.
The firm added: "However, this benefit is likely to be largely offset by lower cruise ship occupancy rates in the short term and particularly the potential negative impact of call cancellations as a result of countries putting in place temporary travel restrictions."
Following a "competitive sales process", Global Ports said it has entered into exclusive negotiations with a buyer of Port Akdeniz, Turkey.
"Although there can be no certainty as to the timing or that the terms of a sale will be agreed. A further announcement will be made when it is appropriate to do so," Global Ports said.
By Eric Cunha; [email protected]
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