Triton profit stable amid trade uncertainty
Bermudian-based Triton International Ltd, the world’s largest lessor of shipping containers, reported net income of $86.4 million for the second quarter amid uncertainty in the shipping industry caused by trade disputes.
The profit was slightly lower than the $88.9 million Triton reported in last year’s second quarter, but on a per-share basis this year’s results were better at $1.15, compared to $1.10 last year.
Brian Sondey, chief executive officer of Triton, described the result as “solid” and said the company realised an annualised return on equity of 16.2 per cent.
“Triton faced mixed market conditions in the second quarter,” Mr Sondey said. “While container supply and demand were generally well balanced, lease transaction and container pick-up activity remained slow despite the start of the traditional summer peak season.
“Global economic conditions have softened this year, and the ongoing trade dispute between the United States and China continues to create uncertainty and impact shipping activity.
“Our utilisation continued to gradually trend down during the second quarter, though it remains strong at 96.8 per cent as of July 19, 2019.”
Second-quarter leasing revenues totalled $338.6 million, up from $329.8 million in the same period last year.
Triton said it has spent $146.7 million on containers for delivery this year. It also repurchased third-party partnership interests in one of its container-owning subsidiaries for $103 million.
Triton declared a dividend of 52 cents per share on its common stock, payable on September 26 to shareholders of record as of September 5.
Shares of Triton fell 3.4 per cent on New York’s Nasdaq stock exchange yesterday to close on $33.09.
The company repurchased 2.3 million shares during the quarter. As of July 19, Triton has bought back 7.1 million shares, since its board initiated the buyback programme in August last year, leading to an 8.8 per cent reduction in its diluted share count.
Mr Sondey added: “Our customers expect trade growth will be modestly positive this year, and we expect container demand will improve somewhat as we move deeper into the summer.
“However, we expect third quarter leasing activity will be less than usual due to the slow start for the peak season and the lack of resolution for the trade dispute between the United States and China.”
• Disclosure: the author of this article owns shares in Triton International
‘Deplorable conditions’ at housing complex
Burt to ditch traditional Throne Speech
Local businesses teed up for PGA event
International criminals ‘targeting Bermuda’
Maiden Re plans move from Bermuda to US
D’ezir dressed for success
Man had $170,000 of cannabis in his home
Dowling admits he did not follow rules
Lawyer may face six more assault charges
Tokunbo cleared over breath test
Busy time for tree surgeon after hurricane
An independent take on independence
Teachers hold elections for union roles
Man charged with firearms offences
Take Our Poll
- "Which of these is the worst political gaffe of modern times"
- Craig Cannonier getting on that plane
- Michael Fahy pressing on with Pathways to Status
- Bob Richards's 'Money doesn't grow on trees' speech
- Lt-Col David Burch and ATVs
- Wayne Caines and the London cereal cafe
- Zane DeSilva's mystery shopper cruise
- Total Votes: 5373
- Poll Archive