1999/1998
Revenues: $12,880,908/$11,936,680
Expenses: $11,434,618/$10,839,530
Net earnings for the period:
$1,446,290/$1,091,150
Net Earnings per share:
$0.48/$0.36
Dividends per share:
$0.14/40.13
The first half of 1999 has been an excellent one for Bermuda Container Line with healthy growth in both freight revenue and net earnings. Freight revenue is at an all time high and the net earnings are the best for the last ten years. Net earnings for the first half at $1,446,000 are $355,000 or 32% above the figure for the comparable period in 1998. Consolidated revenue grew by $950,000 or 8% while consolidated expenses were up $595,000 or 5.5%.
The healthy growth in both revenue and net earnings is due to significant cargo volume growth for both the BCL and SISL services and this is due to increased import volumes into the Island of Bermuda. This is the third year in a row that imports to Bermuda have increased at a substantial rate.
During the first half of 1999 the Directors of BCL took the decision to replace the BCL reefer fleet. BCL did have a number of reefer containers on long-term lease but due to very favourable conditions, for leasees and purchasers, in the new reefer market it made sense to terminate the old leases and pay the penalty costs. BCL arranged to take delivery of 120 brand new reefer containers and it was first planned to take these on long-term leases and the first 28 delivered in May were financed on this basis. Because of even further reductions in the purchase cost and also because of the very healthy cash position of BCL a decision was made in June to purchase outright the remaining 92 which were delivered into the service in August.
Finally, we are sorry to report that on September 21st. the Company received the decision from the second circuit Court of Appeals in its case against the NYSA/ILA and the Appeal Court upheld the lower court ruling. The Directors will be meeting before the end of October to decide on the next course of action.