Dubai-based courier Aramex will make a non-recurring provision of more than $15 million following the warehouse losses and damages that emerged during the third quarter of the year.
In a bourse filing on Thursday, the company confirmed that its entire warehouse facility at the Port of Beirut was damaged during the massive explosion in August 2020, while three of the chambers of its storage facility in Casablanca, Morroco were also partially damaged during a fire incident in late September 2020.
The logistics firm assured that the comprehensive insurance coverage policies should cover both “unfortunate incidents”, and that a loss assessor has been appointed to manage both claims with the respective insurers.
However, it said, it will book a non-recurring provision of $15.1 million, which will appear in the company’s financial statements for the third quarter of the year.
Approximately $2.7 million of the amount will be apportioned for the damage of the warehouse on Beirut’s northern Mediterranean coast, while more than $12.3 million will be related to the partial damage of the storage facility in Casablanca.
“Aramex will disclose any potential reimbursement from the insurance companies only when it is certain to be received, and upon completion of all related procedures,” the company added.
Aremex’s revenues for the first half of the year increased by 1 percent to 2,528 million UAE dirhams, compared 2,512 million dirhams in the same period last year. Its second-quarter net profit dropped by 23 percent to 94.4 million dirhams, compared to 123 million dirhams a year earlier.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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