Performance of United Group for Land Transport earns the success headline

AMMAN — United Group for Land Transport Company (UGLTC)  is showing success with higher earnings and profit.

According to a disclosure sent to the Jordan Securities Commission, the company boosted earnings by 51.8 per cent to JD4.1 million during the first nine months of this year from JD2.7 million during the same period of last year.

UGLTC was also able to double gross profit to JD1.8 million from JD0.9 million.

After taking into consideration administrative and general expenses, depreciation, financing costs and other income, the company’s pretax profit boiled down to JD1.4 million, 133 per cent higher than the JD0.6 million recorded during the first nine months of last year.

Profit after tax amounted to JD1.1 million from JD0.5 million registered on September 30, 2014.

Mid-year 2015 results showed a better achievement with earnings totalling JD2.9 million, 93.3 per cent higher than the JD1.5 million recorded during the first half of the last year.

Gross profit came at JD1.4 million, a 250 per cent increase over the JD0.4 million at the end of June 2014.

The pretax profit surged 1,000 per cent to JD1.1 million as of June 30, 2015, from JD0.1 million after taking into consideration administrative and general expenses, depreciation, financing costs and other income.

Profit after tax amounted to JD0.9 million from JD0.1 million registered on June 30, 2014.

UGLTC Chairman Mazen Azmi Al Qawasmi assured the shareholders in the annual report that the company’s position was strong and described 2014 results as good in light of difficult conditions that the land transport sector is passing through.

The company earned JD4 million last year (JD3.3 million in 2013) and profit after deducting tax and provisions came at JD0.7 million. almost equal to the previous year. 

“The political situations and developments in the region are still negatively affecting land transport activity in Jordan, especially because of limited business to neighbouring Syria and Iraq,” he wrote in a foreword.

Qawasmi mentioned the decline in fuel prices during the last quarter of 2014 as another negative factor that led to a general drop in transport charges and caused some confusion in determining prices. 

He stressed that the management strenuously worked and will persist to cut operational costs as much as possible by seeking to organise transport programmes in order to benefit from all available resources and capabilities.

The chairman underlined the importance of a contract signed with Jordan India Fertiliser Company and stressed that UGLTC will meticulously look after the transport of phosphoric acid from Shidiyeh to Aqaba.

He indicated that the company was proceeding with the maintenance and asphalting of the company’s plaza located at Al Rashdiyah in Aqaba in order to obtain an official business licence and a land deed.

“This project aims at opening a parking garage in Aqaba to become a centre for the trucks that transport phosphoric acid associated with the tender for Jordan India Fertiliser Company,” the chairman wrote.

He said UGLTC would keenly try to attract new customers to maintain a good level of income and activate the handling process, indicating that the local market was marked by stiff competition with several entities engaged in the land transport of various goods.

As such, Qawasmi added, the company could not specify and evaluate its share in the domestic market because the necessary statistics for that were not available, noting in this regard that UGLTC did not have any activities abroad other than transporting goods by land to neighbouring Arab markets.

Financially, the annual report showed that UGLTC generated profits during the past five years, the highest was in 2012 when the amount reached JD1 million and the lowest was JD0.6 million in 2013.

The company distributed JD1 million in cash dividends to shareholders this year at a rate of 15 per cent. In 2011, shareholders received JD0.9 million.

In 2010 and 2012, the cash dividends amounted to JD0.6 million each year.

According to the balance sheet as of September 30, 2015, shareholders equity totalled JD9.9 million, of which JD6.6 million was capital, JD1 million mandatory reserve and JD1.1 million retained earnings. The remaining JD1.1 million was the profit generated during the January-September period of this year.

Liabilities totalled JD1.5 million, JD0.6 million of which were short –term loans. 

The company is repaying two loans amounting to JD2 million loan, at a 9 per cent interest rate and no commission, obtained from Audi Bank to finance the purchase of 60 trucks (trailers and semi trailers). The last installment is due in September 2016.

Out of JD11.3 million in total assets, JD9.3 million were property and machinery after deducting accumulated depreciation. JD1 million were receivables.

At the end of last year, UGLTC employed 73 workers and its capital investment amounted to JD9.9 million. Its offices are located in Sahab/Al Raqeem.