138SL reports six months net loss of $43.74 million

Date: May 16, 2019

138SL’s revenue increased by 4% to $428.15 million relative to the $411.90 million  recorded for the corresponding six months period the year prior. Other operating income also increased for the period under review, growing 3% to $16.40 million relative to $15.87 million a year earlier.  Revenue for the quarter fell by 4% to $211.36 million (2018: $220.27 million), while other operating income climbed 17% for the quarter to $10.11 million (2018: $8.61 million).

Administrative expenses increased by 90% for the period amounting to $387.09 million (2018: $203.42 million). As for the quarter, there was a 55% increase to $183.70 million versus $118.25 million reported in the prior corresponding period. Thus, Operating profit amounted to $57.47 million , a decrease of 74% compared to $224.36 million that was recorded for the comparative period the year prior. Operating profit for the quarter closed at $37.77 million (2018: $110.63 million).

138SL indicated that, “the loss was influenced significantly by non-recurring expenses such as $54.2 million being interest and professional fees arising from the Arbitration Award delivered in respect of a dispute which arose with the contractor for the first phase of the development in 2018. Also, $23.7million representing utility charges arising from the excessive water billing being experienced for which steps have been taken to regularize.”

The Company reported finance cost of $137.82 million (2018: $228.46 million), a 40% decline year over year. For the quarter, finance cost dropped 38% to close at $69.42 million (2018: $112.57 million).

Loss before taxation for the six months period amounted to $80.35 million compared with loss before taxation of $4.10 million for the similar period last year. Following tax credits of $36.61 million (2018: $7.22 million), net loss totalled $43.74 million versus net profit of $3.12 million recorded in 2018. Net profit for the quarter closed at $95,000 relative to net loss of $1.76 million the prior year.

Loss per share (LPS) for the period amounted to $0.11 relative to earnings per share of $0.008 a year earlier. The EPS for the quarter totalled $0.0002 in contrast to a LPS of $0.004. The twelve-month trailing LPS $0.15. The number of shares used in this calculation was 414,500,000. As at May 16, 2019, the stock traded at $3.70.

Management stated that, “it is expected that the record of performance of the short-term rental product and the traditional summer peak in revenues in that area of the business will positively impact the results for the remaining half of the financial year.”

Balance Sheet at a Glance:

As at March 31, 2019, total assets increased by 10% to $8.89 billion (2018: $8.08 billion). This increase was primarily driven by ‘Financial asset-service concession’ and ‘Deferred tax asset’ which closed at $7.96 billion (2018: $7.26 billion) and $212.81 million (2018: $108.54 million), respectively.

Shareholders’ equity totalled $3.27 billion (2018: $2.73 billion) which resulted in a book value per share of $7.90 (2018: $6.59).


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