Kingston Wharves Ltd (KW) more than doubled its June second-quarter net profit to $175.4 million due to higher container volumes and foreign exchange gains.
The multiple berth cargo handler, however, expects modest transshipment growth for the remainder of 2013.
"The increase in operating profit for the six months ended June 2013 was significantly impacted by the depreciation of the Jamaican dollar, new stevedoring activities, as well as increased container volumes and the group's commitment to cost containment," stated chairman and chief executive Grantley Stephenson, in the preface to financials released to the Jamaica Stock Exchange.
The rise in the second-quarter profits (up 110 per cent) increased earning per share to nearly $0.12 per share up from some $0.06 a year earlier. During the second quarter, revenues actually surpassed the $1 billion mark, representing an increase of 22.14 per cent over the corresponding quarter of 2012.
"KWL expects modest growth in transshipment containers and motor units while the domestic business is expected to be flat for the remainder of 2013," wrote Stephenson. "As a result of the continued challenges faced by HCS, management is looking at ways to best utilise its assets and increase its efficiency."
Its other business lines, including its cold storage and security administration operations, both recorded increases in operating profit.
Security Administrators Ltd's profit increased 212 per cent year on year due to what management termed "a special project undertaken for a shipping line".
Harbour Cold Stores Ltd totalled $12.4 million in operating profit for the second quarter compared with $5.6 million a year earlier despite operational challenges.
"Notwithstanding the increase in demand for storage space in second quarter which led to the increased profit, the company continues to face significant operational challenges," indicated Stephenson in the report.
KWL held $12.38 billion in equity and $16.35 billion in total assets as at June 30.