Profit before tax declines at Point Lisas

Point Lisas Industrial
Port Development Corporation Limited
Results for the Year Ended December 31, 2002

Point Lisas Industrial Port Development Corporation Limited (PLIDECO) released its results for the year ended December 31, 2002 last Friday.  It is to be noted that the Group’s operating profit has been restated to reflect the effects of adopting IAS 40 — Investment Properties — on January 1, 2002.

Using the restated profits for comparative purposes shows that for the year ended December 31, 2002 over the corresponding period in 2001 the earnings per share increased from 86 cents per share to 99 cents per share, an increase of 15.12 percent. The main reason for this is a 91.11 percent fall in the taxation from $8.987 million in 2001 to $0.799 million in 2002. 

This is mainly due to the credit of $5.402 million resulting from the change in the corporation tax rate from 30 percent to 35 percent. Also a factor was the tax allowances arising out of the significant capital investments in 2002. Turnover increased from $128.720 million in 2001 to $136.847 million in 2002, an increase of 6.31 percent.  According to the company this is mainly due to:

1. An increase in cargo handling from $78 million in 2001 to $82 million in 2002.  This occurred mainly because the Group was able to secure the business of Maersk Sealand.  It was also bolstered by the over spill of cargo from the deteriorating situation at the major Venezuelan ports.  However the Group fell short of its goals because of the loss of Bernauth Lines;
2. The industrial estate turnover increased from $37 million in 2001 to $39 million in 2002 as a result of the sale of small lots of land for warehousing activity; and
3. The towage turnover grew from $11.5 million in 2001 to $13.1 million in 2002.

However profit before tax declined by 15.57 percent moving from $31.872 million in 2001 to $26.909 million in 2002.  This as a result of:

1. A one-off charge of $3.9 million due to the enhancement of the Group’s pension plan; and
2. Increased depreciation and finance charges from Berth 5 which commenced usage in November. The Directors have recommended a final dividend of 17 cents per share making the total dividend for the year 27 cents per share. The dividend if approved by the shareholders will be paid on May 19, 2003. The current share price is $11.11, which means the share is trading at a PE of 11.22. We believe the Group has a bright future although the benefits from berth 5 would not accrue in the short term.