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JWD InfoLogistics (SET:JWD) Reports QoQ Recovery, Provisions Affect Performances in Q3
BANGKOK, Nov 14, 2016 - (ACN Newswire) - JWD Infologistics PCL (SET:JWD), a leading fully integrated in-land logistics service provider, announced its improved performance in Q3 due to outstanding results from the hazardous cargo warehousing and automotive segments and more effective cost control, and noted its decision to recognize for Q3 onetime provisions for judgment in connection with a case pending the Supreme Court's decision for retroactively claiming share of fee revenue from its hazardous cargo warehousing business at Laem Chabang port. Its management is confident that its businesses will continue to grow strongly, and that Q4 results will show signs of continued recovery and support healthy growth in 2017 as planned.
Dr Eakapong Tungsrisanguan, Chief Financial Officer (CFO) of JWD, revealed the company's Q3 (Jul-Sep) results, highlighting a total revenue of THB 568.4 million, a slight q-o-q increase from THB 561.5 million, and a net profit (before provisions) of THB 24.4 million, up from THB 7.7 million in Q2, which reflects the company's sheer growth potentials and responsiveness to customers' needs.
However, for Q3, after careful consideration JWD decided to recognize provisions for i) judgment in connection with a legal case in which the Court of Appeal directed it to change certain interest calculation methods (which would result in more interests to be borne by it) and which is pending decision by the Supreme Court; and ii) retroactively claiming share of fee revenue from its hazardous cargo warehousing business at Laem Chabang port between 2010 and 2015. The issues remain unsettled but it has opted to follow the transparency and good corporate governance principles by recognizing onetime provisions for these contingent liabilities, which turned the operating profit of THB 24.4 million into a quarterly net loss of THB 105.1 million. The revenue share claim will not affect the operation of the hazardous cargo warehousing business, which is run by JWD as the sole authorized operator and in compliance with the international safety standards.
The CFO added that the company's nine-month results (Jan-Sep) showed a total revenue of THB 1.6792 billion, a net profit (before provisions) of THB 78.1 million and a net loss (after provisions) of THB 51.4 million.
Mr Charvanin Bunditkitsada, Chairman of the Executive Committee and Chief Executive Officer, said that he has detected signs of recovery especially in the hazardous cargo warehousing segment, with rising volumes of containers entering and leaving JWD's storage facilities and the 'JWD Chemical Supply Chain' (JCS) centre within Laem Chabang port, Chon Buri. The JCS centre, which has become operational since July, has drawn healthy interests from customers, recording a 40% occupancy ratio. The ratio is targeted to rise to 100% by 2017, which would increase the company's annual revenue by THB 30-40 million. During Q4, the company will focus its efforts on expanding the customer base in the automobile storage and management segment from the existing automaker firms to include automotive parts producers, which will help the company record robust growth again, added he.
Contact:Released for JWD Infologistics
by MT Multimedia
Yuttachai ("Tle") Paikanahok
Mobile: +66 9 1736 2866
E-mail: yuttachai.p@mtmultimedia.com
Source: JWD InfoLogistics PCL
Sectors: Daily News
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