Date: August 29, 2019
Income increased by 5% to $651.16 million relative to the $617.40 million recorded for the corresponding nine months period the prior year. Other operating income also increased for the period under review, growing 4% to $27.76 million relative to $26.77 a year earlier. Income for the third quarter rose 9% to $223.01 million (2018: $205.50 million), while other operating income climbed 4% to $11.34 million (2018: $10.90 million).
Administrative expenses increased by 68% amounting to $560.98 million (2018: $334.25 million). As for the quarter, there was an 33% increase to $173.89 million (2018: $130.83 million). The company mentioned that, “expenses for the quarter recorded an increase of 33% driven primarily by the significant increase in utility costs.”
Thus, operating profit amounted to $117.94 million, a decrease of 62% compared to $309.92 million that was reported for the comparative period the year prior. While for the third quarter, operating profit closed at $60.48 million (2018: $85.57 million), indicating a 29% decline year over year.
The company also reported finance cost of $209.91 million (2018: $329.96 million) a 36% decrease year on year. For the quarter, finance cost went down by 29% to close at $72.10 million (2018: $101.50 million). Management noted, “ this was due to lower interest rates”.
Losses before taxation for the nine months period amounted to $91.97 million compared with the loss of $20.04 million for similar period last year. Following tax credits of $31.55 million (2018 tax credit: $23.33 million), Net loss totalled $60.43 million, compared to a profit of $3.30 million recorded in 2018, representing a dip of 1934%. Net loss for the third quarter amounted to $16.69 million relative to a Net Profit of $180,000.
Loss per share (LPS) for the period amounted to $0.146 relative to earnings per share of $0.008 a year earlier. The LPS for the quarter totalled $0.0403 in contrast to an EPS of $0.0004. The twelve-month trailing LPS $0.19. The number of shares used in this calculation was 414,500,000. As at August 29, 2019, the stock traded at $4.20.
Furthermore, the company stated that the reasons for its year to date results stemmed from- non-recurring expenses such as “J$54.2 million being interest and professional fees arising from the Arbitration Award in respect of dispute which arose with the contractor for the first phase of the development in 2016 and utility cost increased exponentially by 80% for which management has taken steps to reduce going forward.”
Balance Sheet at a Glance:
As at June 30, 2019, total assets increased by 10% to $8.97 billion (2018: $8.16 billion). This increase was primarily driven by a 9% increase in financial asset-service concession to $7.96 billion (2018: $7.28 billion). Receivables also contributed to the increase with a 33% growth to $483.16 million relative to $362.20 million recorded twelve months earlier.
Shareholders’ equity totalled $3.26 billion (2018: $2.73 billion) which resulted in a book value per share of $7.86 (2018: $6.59).
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