Triton profit stable amid trade uncertainty

  • Softening economy: container lessor Triton International reported a fall in second-quarter net income (Photograph by JB Reed/Bloomberg News)

    Softening economy: container lessor Triton International reported a fall in second-quarter net income (Photograph by JB Reed/Bloomberg News)


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

You must be registered or signed-in to post comment or to vote.

Published Jul 26, 2019 at 8:00 am (Updated Jul 25, 2019 at 10:08 pm)

Triton profit stable amid trade uncertainty

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • "What is the most significant reason for Bermuda residents choosing to leave the island?"
    • Too small
    • 3%
    • Different way of life
    • 4%
    • Cost of living
    • 77%
    • Gang activity and general crime
    • 3%
    • Jobs/professional advancement
    • 8%
    • Education
    • 2%
    • Attitudes towards gays
    • 3%
    • Total Votes: 5235
    • Poll Archive

    Today's Obituaries

    eMoo Posts