August 9, 2024
Eppley Limited (EPLY) for the six months ended June 30, 2024, reported a 2% increase in Interest Income totaling $223.06 million compared to $218.53 million in the corresponding period last year. Interest Income for the second quarter had a 4% decrease to close at $105.37 million compared to $110.06 million for the comparable quarter of 2023.
Interest Expense amounted to $171.80 million (2023: $149.29 million), this represents an increase of 15% year over year. Consequently, net interest income decreased by 26% to $51.26 million compared to $69.24 million for the six months ended June 30, 2023. The company booked net interest income of $16.61 million for the second quarter versus $31.78 million reported for the similar quarter of 2023.
Asset management fee income increase by 13% to close at $167.78 million (2023: $147.87 million). As a result, other operating income for the six months amounted to $69.23 million, a 19% decrease relative to $85.39 million reported in 2023.
Administrative expenses for the six months amounted to $168.29 million, a 1% increase relative to $166.43 million reported in 2023. Net impairment losses of financial and contracts assets totalled $179,000 a 58% decrease from the corresponding period last year. (2023: $424,000).
Profit before tax for the six months amounted to $124.01 million, a 66% decrease relative to $365.61 million reported in 2023. Profit before tax for the second quarter amounted to $38.94 million (2023: $292.22 million).
Taxation for the six months was $13.23 million (2023: $14.10 million).
Net Profit for the six months amounted to $110.78 million, a 68% decrease from the $351.52 million reported in 2023. For the second quarter, Net Profit was $27.39 million (2023: $284.50 million).
Management noted, “excluding the gain on bargain purchase of $229 million for the second quarter of 2023 would result in a 9% decrease in profit after tax for June 2024 compared to June 2023. This decrease is as a result of higher financing costs as well as a decrease in the foreign exchange gain when compared to the prior period.”
Consequently, Earnings Per Share for the six months amounted to $0.58 (2023: EPS: $1.83), while Earnings Per Share for the quarter totalled $0.14 (2023: EPS: $1.48). The twelve-month trailing EPS was $1.38, and the number of shares used in these calculations was 192,468,300.
Notably, EPLY’s stock price closed the trading period on August 8, 2024, at a price of $37.80 with a corresponding P/E ratio of 27.30x.
Balance Sheet Highlights
The company’s assets totalled $6.74 billion (2023: $6.82 billion). The decline in assets stemmed from a 33% fall in ‘Real estate available-for-sale’ closing at $607.09 million.
Shareholder’s equity was $1.25 billion (2023: $1.23 billion), representing a book value per share of $6.49 (2023: $6.39).
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