August 15, 2023
Eppley Limited (EPLY) for the six months ended June 30, 2023 reported a 3% decrease in Interest Income totaling $218.53 million compared to $225.36 million in the corresponding period last year. Interest Income for the second quarter had a 1% decrease to close at $110.06 million compared to $110.69 million for the comparable quarter of 2022.
Interest Expense amounted to $149.29 million (2022: $143.65 million), this represents an increase of 4% year over year. Consequently, net interest income decreased by 15% to $69.24 million compared to $81.71 million for the six months ended June 30, 2022. The company booked net interest income of $31.78 million for the second quarter versus $36.77 million reported for the similar quarter of 2022.
Asset management fee income increase by 19% to close at $147.87 million (2022: $123.74 million). Other operating income/(expenses) for the six months ended June 30, 2023, amounted to $85.39 million, a 313% increase relative to $20.68 million reported in 2022. Gain on bargain purchase amounted to $229.12 million for the six months compared to nil in the prior period. EPLY noted, “The financial performance for the first half of 2023 now reflects the impact of the tender for the Eppley Caribbean Property Fund-Development Fund shares which resulted in a gain on bargain purchase.”
Administrative Expenses for the six months ended June 30, 2023, amounted to $166.43 million, a 47% increase relative to $113.55 million reported in 2022. Administrative Expenses for the second quarter amounted to $104.48 million (2022: $56.82 million). Net gain of financial and contracts assets totalled $424,000. (Net impairment of financial and contracts assets 2022: $65,000).
Profit Before Tax for the six months ended June 30, 2023, amounted to $365.61 million, a 225% increase relative to $112.52 million reported in 2022. Profit Before Tax for the second quarter amounted to $292.22 million (2022: $19.64 million).
Taxation for the six months ended June 30, 2023, rose to $14.10 million (2022: $2.56 million) . Net Profit for the six months amounted to $351.52 million, a 220% increase from the $109.96 million reported in 2022. For the second quarter, Net Profit was $284.50 million (2022: $18.35 million).
Consequently, Earnings Per Share for the six months amounted to $1.83 (2022: EPS: $0.57), while Earnings Per Share for the quarter totaled $1.48 (2022: EPS: $0.10). The twelve-month trailing EPS was $2.50, and the number of shares used in these calculations was 192,468,300.
Notably, EPLY’s stock price closed the trading period on August 14, 2023, at a price of $35.99 with a corresponding P/E ratio of 14.42x.
Balance Sheet Highlights
The company’s assets totalled $6.82 billion (2022: $5.28 billion). The increase is mainly due to the $905.76 million recorded for Real estate available-for-sale relative to nil in the prior period.
Shareholder’s equity was $1.23 billion (2022: $979.84 million), representing a book value per share of $6.39 (2022: $5.09).
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