ANSA McAL’s (ANSA) has recorded slight growth in net profit of 1.4 per cent or $2 million in its third quarter (Q3) ended September 30, 2020.
In the company’s financial statements, the Chairman of the Group A Norman Sabga said: “I am pleased to report that our third quarter after tax earnings are on par with third quarter 2019 ($141 million vs $139 million).”
Sabga went on to note that the creditable Q3 results recorded by the group of companies could not offset the earnings foregone as a result of the imposed shutdowns during the prior quarters.
The chairman added: “We anticipate continued improvement in the fourth quarter as trading restrictions are lifted.”
For the nine-month period ended September 30, 2020, the Group’s revenue fell $477 million or 10 per cent to $4.240 billion (4.717 billion – 2019) while profit before tax (PBT) fell $250 million or 42 per cent to $343 million ($592.6 million – 2019).
After-tax profit generated was down $205 million or 46 per cent to $237.6 million ($442.4 million – 2019).
According to Sabga: “This reflects the deleterious impact of zero revenue earned by the major business lines in our automotive, construction and retail sectors for a quarter of the financial year.”
He indicated that the group was also impacted by unrealised, non-can mark-to-market losses on financial instruments of $70 million, which are projected to improve as US and TT equity markets settle.
Nevertheless, ANSA Merchant Bank Ltd (AMBL) recently reported a 32 per cent increase in net profit growth for its third quarter (Q3) ended September 30, 2020 as it registered $9.9 million increase from its 2019 figure of $30.8 million.
AMBL also earned a consolidated profit before tax (PBT) of $57 million for the three month period ended September 30, 2020, as compared to $50 million in the same quarter of last year, an increase of 16 per cent year over year.
Meanwhile, Sabga indicated that the ANSA McAL group of companies capital and liquidity remain solid with a healthy gearing ratio and significant free cash.
He said: “Your group is weathering the pandemic by prioritising job preservation and the wellbeing of our employees and customers. Over the last nine months, we have demonstrated our resilience and strength.”
Sabga noted that he remains very confident of the group’s outlook, and excited by the interesting opportunities for growth from out of current and future investment pipeline.