August 17, 2021
Eppley Limited (EPLY), for the six months ended June 30, 2021 reported Interest Income for the period at $177.54 million from $168.98 million the previous year, a 5% increase. While for the second quarter interest income amounted to $106.15 million relative to $77.69 million in 2020.
Interest Expenses amounted to $122.09 million, up 20% from $101.43 million for the corresponding period in 2020. While, for the quarter, interest expense closed at $68.04 million (2020: $51.40 million).
Consequently, net interest income declined 18% to $55.45 million, down from $67.55 million in the corresponding period of 2020. Net interest income for the second quarter amounted to $38.11 million relative to $26.29 million for the corresponding quarter of 2020.
Other operating income went down by 31% to total $30.99 million relative to $45.18 million in 2020, while administrative expenses increased by 15% to close at $99.47 million (2020: $86.57 million).
As such, pre-tax profit closed at $111.18 million for the six months ended June 30, 2021, 2% more than the $109.06 million booked in 2020. Taxes for the six months ended June 30, 2021 amounted to $2.24 million relative to $2.01 million for the prior period and as such net profit amounted to $108.95 million, relative to net profit of $107.05 million in 2020. While second quarter net profits amounted to $58.06 million relative to $66.64 million in last year.
Total comprehensive income for the six months amounted to $116.73 million (2020: $106.03 million) and for the second quarter $58.06 million (2020: $74.26 million).
Earnings per share for the six months ended June 30, 2021 totalled $0.57 compared to $0.56 for the corresponding period in 2020, while earnings per share for the quarter amounted to $0.30 (2020: $0.35). The trailing twelve months EPS is $1.18. The total amount of shares outstanding used for this calculation was 192,468,300 units. EPLY closed the trading period at $41.81 on August 16, 2021 with a corresponding P/E ratio of 35.41 times.
The Company highlighted, “At the end of the first half we owned a $5.0 billion investment portfolio consisting of cash, loans, leases, receivables and investments in our mezzanine, real estate, infrastructure and asset management joint ventures and subsidiaries. The average income yield of our portfolio was 13% and 17% excluding our large cash balances.”
In addition, Eppley further stated, “Eppley’s business model, culture and investment philosophy are designed to thrive in the current market environment. We are increasingly seeing opportunities to deploy capital at favourable risk-adjusted returns and expect this to continue in the second half of 2021.”
Balance Sheet Highlights:
As at June 30, 2021, total assets amounted to $5.14 billion, 35% more than the $3.81 billion in 2020. This was attributed ‘Lease Receivables’ which amounted to $1.60 billion (2020: $480.49 million). However, this was slightly tempered by the decline in ‘IPF Receivable’ amounting to $65.62 million (2020: $135.74 million).
Shareholder’s Equity increased by 12% for six months period, totalling $953.82 million compared to the previous year’s total of $853.07 million, this resulted in a book value per share of approximately $4.96 relative to $4.43 in 2020.
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