August 15, 2022
Kingston Wharves Limited (KW) for the six months ended June 30, 2022, reported revenue of $4.56 billion a 16% increase when compared to $3.91 billion recorded for the corresponding period of the prior year. Revenue for the second quarter grew 12% to $2.31 billion (2021: $2.06 billion); as both the Company’s ‘Terminal Operations’ and ‘Logistics Service’ Divisions reported increases.
The Terminal Operations Division “generated operating revenue of $3.67 billion for the six-month period, an increase of 20% over the corresponding period of the prior year.” While the, “Logistics Services Division generated revenues of $1.4 billion, an increase of 11% over the prior year.”
Cost of sales rose 18% to a total of $2.35 billion (2021: $1.99 billion). Consequently, gross profit grew by 14% for the period to total $2.21 billion relative to $1.93 billion recorded a year ago. Gross profit within the second quarter rose 5% to close at $1.11 billion compared to $1.05 million booked for the quarter ended June 30, 2021.
Other operating income contracted year over year, to $20.25 million (2021: $264.87 million). Administrative expenses rose 24%, amounting to $757.73 million relative to $609.16 million for the same period last year.
As such, operating profit closed the period at $1.47 billion, 7% less than the prior year’s corresponding six months period of $1.58 billion. Operating profit for the quarter declined 26% to $673.07 million versus $903.80 million in 2021.
Finance Costs for the year declined 19%, to close at $56.76 million for the period relative to $69.69 million booked for the same period in 2021.
KW’s profit before taxation fell by 7% to $1.41 billion for the period in contrast to the $1.51 billion in 2021.
Income tax expense for the period decreased by 13% to $186.42 million compared to $215.28 million for the corresponding period in 2021. Profit for the six months moved from $1.30 billion in 2021, to $1.23 billion for the period ended June 30, 2022, a 6% decline year over year.
Net profits attributable to shareholders for the six months fell by approximately 5% to total $1.21 billion relative to $1.28 billion in 2021. Second quarter net profit attributable to shareholders fell 26% to close at $541.18 million (2021: $728.03 million).
Earnings per share (EPS) for the six months amounted to $0.85 (2021: $0.89), while for the quarter the EPS was $0.38 (2021: $0. 51). The trailing earnings per share EPS totaled $2.19. The total number of shares used in the calculations amounted to 1,430,199,578 units. KW stock price closed the trading period on August 15, 2022 at $37.66 with a corresponding P/E ratio of 17.20 times.
Management noted, “preliminary works are currently underway on expanding our deep-water berths, clearing yard space and improving its functionality, and developing new warehousing and logistics facilities that will allow us to capitalize on opportunities. Improvements to our berth, container yard, and cargo handling equipment and facilities, will be complemented by additional investments in digital infrastructure, such as the upgrading of our terminal operating system, expansion of e-commerce mechanisms and technologically-enabled security enhancements.”
Balance Sheet Highlights:
As at June 30, 2022, the company’s assets totaled $41.55 billion relative to $39.61 billion a year ago, an increase of 5%, which was driven mainly by an increase in ‘Short Term Investments’ to total $8.82 billion from $7.20 billion twelve months earlier.
Shareholders’ Equity amounted to $35.84 billion compared to equity of $33.64 billion reported as at June 30, 2021. The Company now has a book value per share of $25.06 (2021: $23.52).
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