Textainer profits soar as Covid-19 disrupts supply chains

Bermuda-based Textainer Group, which leases shipping containers, says core profit rose by almost a half during year to end-December, with Covid-19 disruptions helping to bump up its fleet utilisation to almost 100%.

The fallout from Covid-19 continues to affect the overall market, prolonging the current supply-chain disruptions that create additional demand for containers, the group said on Friday as it released its 2021 results.

Adjusted earnings before interest, taxation, depreciation and amortisation, (Ebitda) rose 46.5% to $697.9m (R10.57bn) to end-December, with the group growing the size of its fleet, while average utilisation rose to 99.8% from  96.6% in the prior comparative year. Ebitda, or core profit, is a measure of operational profitability.

Textainer has operated since 1979 and is one of the world’s largest lessors of intermodal containers, leasing containers to approximately 200 customers, including all of the world’s leading international shipping groups.

“We are very pleased to report another quarter of strong performance, which provided a fantastic finish to a tremendous year,” said CEO Olivier Ghesquiere in the results.

“I’m very proud of the strong execution across the organisation, which has secured our profitability and cash flow for many years to come. As we look out at 2022 and beyond, we are strategically well positioned in the market, with extremely competitive metrics across the company,” he said.

In morning trade on Friday, Textainer’s shares were 1.7% lower at R613.89, having more than quadrupled over the past two years, roughly the period of time the pandemic has lasted.

gernetzkyk@businesslive.co.za