Covid19 cuts Ansa's profits by 40%

Ansa Mc Al has reported a decline in its profit before tax by 42 per cent, bringing the group of companies’ profits down to $343 million.

In an ad in local papers detailing its unaudited results for 2020's third quarter, chairman Norman Sabga said the nosedive in earnings reflected the effects of covid19 and the multiple shutdowns and restrictions related to the pandemic.

“This reflects the deleterious impacts of zero revenue earned by major business lines in our automotive, construction and retail sectors for a quarter of the financial year,” Sabga said in a statement.

He added that the group was also affected by mark-to-market losses on financial instruments which amounted to $70 million. However those figures are expected to improve as US and TT equity markets settle.

But there is good news. The group’s after-tax earnings for the third quarter are on par with 2019's third-quarter earnings. In 2019, it garnered a total of $141 million. This year it earned $139 million.

Sabga said while the third quarter would not be enough to offset the revenue lost over the year, the group anticipated continued improvement in the fourth quarter as trading restrictions are lifted.

“The group’s capital and liquidity remain solid with a healthy gearing ratio and significant free cash,” Sabga said. “Your group is weathering the pandemic by prioritising job preservation and the well-being of our employees and customers.”