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Mercantile Ports&Log (MPL)

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Wednesday 01 April, 2020

Mercantile Ports&Log

COVID-19 Update

RNS Number : 4000I
Mercantile Ports & Logistics Ltd
01 April 2020
 

1 April 2020

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

 

COVID-19 Update

The Company provides an update as a result of COVID-19, which has created unprecedented disruption to businesses and supply chains across the globe. The Government in India has implemented significant measures to stem the effects of the virus in India and Prime Minister Modi announced a three-week lockdown across the country, which requires everyone to stay at home . This action is affecting individuals and business across India, including MPL. 

 

In accordance with the Government's direction, the Company has ceased activity at its site at Karanja, although security remains in place to protect the Facility. The Company is well equipped to enable certain staff to continue to work remotely, and contract discussions remain ongoing with potential end-users of the Facility. The Company can confirm that the ground works required to implement the previously announced contract with Tata Projects Ltd and Daewoo Engineering had been progressing according to plan and some land was handed over to this customer to enable the contract to commence and revenues to be generated from it from 1 April, as scheduled.  The balance of the land will be handed over following completion of the groundworks, once Covid-19 restrictions are lifted.

 

Whilst the banking environment in India remains challenging generally, the Company is pleased to report that it does, once again, have full access to its banking facilities, which the Board considers to be a strong endorsement of the Company's project. These banking facilities, together with the Company's existing cash reserves and the actions that the Board has and will be taking, mean that the Company is confident that it has sufficient resources to see it through the current COVID-19 crisis.   

Prime Minister Modi announced on 19 March 2020 that a Special COVID-19 Economic Response Task Force has been set up to review and announce relief packages for the sectors most affected by the coronavirus outbreak. The Company awaits the outcome of this process and will seek to benefit from such relief measures as are appropriate.

Further announcements will be made as appropriate.

Jay Mehta , C EO of MPL stated, "These are extraordinary times for the world and our primary concern is the well-being of our employees, contractors, villagers and all stake-holders. I remain very confident and optimistic about the prospects for MPL and its business. Furthermore, I believe that there will be significant opportunities for the Company once the COVID-19 pandemic subsides. Our business is robust and should stand to gain from the significant dislocation that this virus is creating and I am sure that we can play our part in unblocking the supply chain issues within India. We look forward to resuming normal operations as soon as is practicable".

 

Enquiries:

 

MPL

Jay Mehta

 

C/O Newgate Communications

 

+44 (0)20 3757 6880

Cenkos Securities plc

Stephen Keys

 

+44 (0)20 7397 8900

Newgate Communications (Financial PR)

Adam Lloyd/Isabelle Smurfit

 

+44 (0)20 3757 6880

 


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