August 17, 2020
Eppley Limited (EPLY), for the six months ended June 30, 2020 reported Interest Income for the period at $168.98 million from $179.67 million the previous year, a 6% decrease. While for the second quarter interest income amounted to $77.69 million relative to $87.84 million in 2019.
Interest Expenses amounted to $101.43 million, up 7% from $95.14 million for the corresponding period in 2019. While, for the quarter, interest expense closed at $51.40 million (2019: $49.83 million).
Consequently, net interest income declined 20% to $67.55 million, down from $84.54 million in the corresponding period of 2019. Net interest income for the second quarter amounted to $38.01 million relative to $38.20 million for the corresponding quarter of 2019.
Other operating income went up by 73% to total $128.11 million relative to $74.13 million in 2019, while administrative expenses increased by 3% to close at $86.57 million (2019: $84.42 million).
Share of net profit from joint venture accounted for using the equity method reported nil relative to $3.45 million the year prior.
As such, pre-tax profit closed at $109.06 million for the six months ended June 30, 2020, 40% more than the $77.70 million booked in 2019. Taxes for the six months ended June 30, 2020 amounted to $2.01 million relative to $1.27 million for the prior period and as such net profit amounted to $107.05 million, relative to net profit of $76.43 million in 2019. While second quarter net profits amounted to $66.60 million relative to $70.16 million in last year.
Total comprehensive income for the six months amounted to $106.03 million (2019: $77.13 million) and for the second quarter $74.22 million (2019: $70.42 million).
Earnings per share for the six months ended June 30, 2020 totalled $0.56 compared to $0.40 for the corresponding period in 2019, while earnings per share for the quarter amounted to $0.35 (2019: $0.36). The trailing twelve months EPS is $1.01. The total amount of shares outstanding used for this calculation was 192,468,300 units. EPLY closed the trading period at $17.50 on August 17, 2020.
The Company highlighted, “Our profits grew significantly despite a reduction in interest income caused by the termination of a few large factoring arrangements recorded in 2019 that expired this year.”
In addition, Eppley further stated, “Profitability growth was driven primarily by the expansion of our asset management business. Asset management fees and the dividends we receive from our subsidiaries and affiliates are reflected in our financial statements as other operating income. These income streams are stable and recurring and enhance the quality of Eppley’s earnings and the resiliency of our business.”
Balance Sheet Highlights:
As at June 30, 2020, total assets amounted to $3.81 billion, 3% more than last year’s $3.71 billion in 2019. This was attributed ‘Investment Securities’ which amounted to $921.79 million (nil). However, the decline in ‘IPF Receivable’ and ‘Financial assets at fair value through profit or loss’ has tempered with the overall increase in the company’s assets, amounting to $135.74 million (2019: $515.16 million) and nil (2019: $372.89 million).
Shareholder’s Equity increased by 10% for six months period, totalling $853.07 million compared to the previous year’s total of $776.57 million, this resulted in a book value per share of approximately $4.43 relative to $4.03 in 2019.
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