Grupo TMM posts $7.8m loss in Q2 2016

The Mexico City-based port management and logistics provider reported a net loss of 1.40 pesos per share for the quarter on revenues that fell 20.8 percent to 662.6 million pesos compared with second quarter 2015.    Grupo TMM, S.A.B. reported a net loss of 142.1 million Mexican pesos (U.S. $7.8 million at Wednesday’s exchange rate) in the second quarter of 2016 compared with a loss of 137 million pesos in the same 2015 period, according to the company’s most recent financial statements.
   The Mexico City-based port management and logistics provider reported a net loss of 1.40 pesos per share for the quarter on revenues that fell 20.8 percent to 662.6 million pesos compared with second quarter 2015.
   The company attributed the revenue decline primarily to lower revenues in its maritime segment that resulted from diminished demand on the part of Grupo TMM’s principal customers. This was partially offset 111.4 million pesos from the sale of a related company linked to the development of a hydrocarbon storage terminal in Tuxpan, Mexico.
   As a result, consolidated operating income in the second quarter plummeted 49.4 percent to $38.8 million compared with the previous year.
   For the first six months of the year, Grupo TMM narrowed its net loss from 249.4 million pesos in 2015 to 220.1 million pesos in first half 2016. Loss per share stood at 2.10 pesos in the first half compared with 2.40 pesos the previous year as revenues slipped 3.2 percent to 1.5 billion pesos.
   Operating profit from the company’s maritime segment in the second quarter fell from 148.1 million pesos in 2015 to a loss of 10.6 million pesos in 2016. Maritime revenues decreased 23.9 percent for the quarter and 4.7 percent year-over-year during the first half of 2016.
   Grupo TMM’s ports and terminals unit grew second-quarter operating profit 14.2 percent to 8.2 million pesos as revenues jumped 7.9 percent compared with the same 2015 period. Ports and terminals revenues increased 11.8 percent year-over-year during the first six months of 2016.
   The company attributed the increase to improved agencies and intermodal terminal revenues attributable to favorable exchange rates, which were partially offset by declining revenues at port operations in Tuxpan, Tampico and Acapulco.
   “The drop in oil prices generated an unprecedented reduction in the demand for oil services around the world, as well as in all offshore vessels in México,” noted Grupo TMM Chairman and CEO José F. Serrano.
   The company said it has implemented a strategic plan with the aim of reversing the negative earnings trend. The plan includes diversification of income sources and customers, strategic reduction of costs and SG&A expenses, commencement of operations with NAFIN to reduce liquidity risk and the effect of new payment policies for Grupo TMM’s principal customers, and “significant progress in its capitalization process.”
   “These actions will be gradual and will most likely have a positive impact in our results in the following quarters,” the company added.