April 2, 2024
Eppley Limited (EPLY) for the year ended December 31, 2023, reported a 3% decrease in Interest Income totaling $426.87 million compared to $438.36 million in the corresponding period last year. Interest Income for the fourth quarter had a 3% increase to close at $110.28 million compared to $106.64 million for the comparable quarter of 2022.
Interest Expense amounted to $315.82 million (2022: $300.39 million), this represents an increase of 5% year over year.
Consequently, net interest income decreased by 20% to $111.04 million compared to $137.97 million for the year ended December 31, 2022. The company booked net interest income of $20.53 million for the fourth quarter versus $26.04 million reported for the similar quarter of 2022. “Net interest income fell mainly due to repayments of loans and factoring facilities during the period coupled with higher interest expenses and penalties associated with repayments of maturities during the year”, EPLY highlighted.
Asset management fee income increased by 15% to close at $326.95 million (2022: $283.34 million). Other operating income for the year ended December 31, 2023, amounted to $171.27 million, an 87% increase relative to $91.48 million reported in 2022.
Administrative Expenses for the year ended December 31, 2023, amounted to $327.71 million, a 35% increase relative to $243.00 million reported in 2022. Administrative Expenses for the fourth quarter amounted to $94.81 million (2022: $74.67 million).
Management noted, “The financial performance for 2023 reflects consolidation of the Eppley Caribbean Property Fund-Development Fund and the impact of the gain on bargain purchase ($230.27 million) from the acquisition.”
Profit Before Tax for the year ended December 31, 2023, amounted to $525.09 million, a 95% increase relative to $269.84 million reported in 2022. Profit Before Tax for the fourth quarter amounted to $61.28 million (2022: $79.61 million).
Taxation for the year was $17.83 million (2022: $31.05 million). Net Profit for the year amounted to $507.26 million, a 112% increase from the $238.80 million reported in 2022. For the fourth quarter, Net Profit was $64.41 million (2022: $50.65 million).
For the year, net profit attributable to owners of the company increased by 112% to $507.38 million (2022: $238.78 million).
Consequently, Earnings Per Share for the year amounted to $2.64 (2022: EPS: $1.24), while Earnings Per Share for the quarter totaled $0.34 (2022: EPS: $0.26). The number of shares used in these calculations was 192,468,300.
Notably, EPLY’s stock price closed the trading period on March 28, 2024, at a price of $34.66 with a corresponding P/E ratio of 13.15x.
Balance Sheet Highlights
The company’s assets totalled $7.04 billion (2022: $5.61 billion). ‘Cash and deposits’ mainly contributed to the increase in assets, closing at $1.38 billion (2022: $1.03 billion).
Shareholder’s equity was $1.38 billion (2022: $1.10 billion), representing a book value per share of $7.19 (2022: $5.70).
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