Port of Oakland reports unaudited Fiscal Year 2020 results

Oakland, Calif. – Sept. 30, 2020:  Despite a 37.6 percent drop in net income compared to the prior year, the Port of Oakland is on a sustainable path due to managed reduction in expenses. That’s what the Port’s governing Board heard in a presentation last week on Fiscal Year 2020 unaudited financial performance.

The Port reported $41 million in operating income for the fiscal year ended June 30, 2020. That was down from $66 million in FY 2019.  The Port attributed the decline to the economic impact of a global coronavirus pandemic.

“The Port’s overall financial position remained solid and resilient with strong liquidity and debt service coverage ratios at June 30,” Oakland Port Commissioners were told.

Revenue declined 5.3 percent in FY 2020 to $376 million, the Port said. A 70-to-90 percent drop in Oakland International Airport passenger traffic beginning in March contributed to much of the revenue decrease. Cargo volume at the Port of Oakland fell 6.8 percent, the Port said.

Aviation revenue dropped 10.3 percent last year, the Port said. Maritime revenue rose 1 percent. Commercial Real Estate revenue was off 7.8 percent.

The Port said that coronavirus impacts hit during the last three months of the fiscal year. A strong first eight months lessened the impact.  The Port warned of further pressure in FY 2021 with a full year of expected pandemic-related economic reversals worldwide.

The Port said its FY 2020 unaudited financial performance was in line with internal projections. The Port said it cushioned the blow of a reeling global economy by reducing budgeted expenses nearly $40 million. The Port said cost-control efforts should ensure that it remains financially resilient and prepared for uncertainties in FY 2021.