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Dec 31, 2019
Matson Q4 2019 Earnings Report
Matson's fourth quarter earnings decreased compared to the same period last year, but China tradelane service outperformed and Hawaii service saw a modest rebound.
Key Takeaways
Matson reported a decrease in net income for Q4 2019, with EPS at $0.36 compared to $0.48 in Q4 2018. Consolidated revenue also decreased to $540.7 million from $564.9 million in the same quarter of the previous year. The results were below expectations despite solid contributions from China and Alaska tradelanes, and Logistics.
Q4 2019 EPS was $0.36.
Full Year 2019 EPS was $1.91.
Full Year 2019 Net Income and EBITDA were $82.7 million and $264.3 million, respectively.
2020 Net Income is expected to be flat with the 2019 level, with an expected negative impact from COVID-19.
Matson
Matson
Matson Revenue by Segment
Revenue by Segment
Ocean Transportation Revenue
CapyFin.com Forward Guidance
The Company expects net income in 2020 to be flat year-over-year and expects consolidated operating income and EBITDA in 2020 to be approximately $143 million and $280 million, respectively, including approximately $15 million negative impact from COVID-19.
Positive Outlook
- Improved consolidated financial performance led by the reduction in fleet deployment to nine vessels in our Hawaii tradelane service.
- Financial benefits from our other infrastructure-related investments.
- Expect net income to be flat and EBITDA to be higher than the levels achieved in 2019.
- Specifically, we expect EBITDA in 2020 to be approximately $280 million.
- Reaffirm $30 million in financial benefits in 2020 from new vessels and infrastructure investments
Challenges Ahead
- Negative financial impact from COVID-19 on our CLX service, at SSAT and in Logistics of approximately $15 million in aggregate.
- Expect challenging conditions in the first half of the year as a result of COVID-19.
- Expect volume in 2020 to be modestly lower than the prior year and average freight rates in 2020 to approximate the levels achieved in 2019 for China.
- The Company expects the contribution from SSAT to be lower due to lower lift volume primarily driven by the negative effects of COVID-19.
- The Company expects Logistics operating income to be lower than the level achieved in 2019 of $38.3 million.