May 15, 2018
Kingston Wharves Limited (KW) for the three ended March 31, 2018 reported total revenue of $1.63 billion, an 18% or $246.99 million increase relative to the $1.39 billion recorded for the corresponding period in 2017.
The company noted, “The revenue of the Terminal Operations Division for the first quarter amounted to $1.3 billion, an increase of 24% year-on-year. Divisional profits increased by 16% from $331 million for the first quarter in 2017 to $385 million this year. The growth in revenues and profits reflected the strengthening of our domestic containerized cargo operations along with an improvement in our domestic and transshipment services across a range of cargo types including automotive, bulk and breakbulk cargo. The Logistics Services Division also made considerable gains, with total revenues amounting to $397 million, an increase of 22% over the relative period of the prior year. One of the drivers behind this revenue growth is the widened range of commercial services and the improved customer experience that have become possible with the Total Logistics Facility. Operating profits for the Logistics Services Division were down by 15% in the quarter as we incurred start-up costs associated with our new facility.”
Cost of sales for the period grew by 23% to a total of $887.79 million compared to the $724.01 million for the same period last year.
Gross profit closed the period at $745.25 million, a 13% increase from the $662.04 million recorded a year ago.
Other Operating Income for the period climbed 123% year over year, to total $51.64 million (2017: $23.18 million).
Administrative Expenses for the period increased by 19%, amounting to $300.15 million from the $252.31 million recorded for the same period last year.
As such Operating Profit closed the three months period at $496.74 million, a 15% or $63.83 million increase relative to the $432.91 million recorded for the comparable period in 2017.
Finance Costs for the period increased 95% total $59.87 million relative $30.68 million recorded for the same period in 2017.
Profit before taxation closed the period at $436.87 million, growing 9% year over year (2017: $402.23 million).
Taxation charges amounted to $62.83 million for the period, a 4% decline relative to the charges of $65.22 million incurred for same period last year.
Notwithstanding, Net Profits attributable to shareholders rose by approximately 11% to total $368.46 million relative to $332.48 million recorded for the corresponding period in 2017.
Consequently, Earnings per share for the year ended March 31, 2018 amounted to $0.26 (2017: $0.23). The twelve month trailing earnings per share is $1.16. The total number of shares used in the calculations amounted to 1,430,199,578 units. Notably, KW’s stock price closed the trading period on May 15, 2018 at a price of $48.48.
Additionally, KW noted, “In the year ahead, KWL will continue to undertake initiatives to increase Kingston Wharves Limited 2018 our efficiency and to improve the experience of users of the terminal and our logistics facilities. The projects that are slated for implementation include the demolition of an additional ondock warehouse, the expansion and re-organisation of our terminal space, additional cargo handling equipment and the design and implementation of enhanced systems and protocols to securely streamline the timely clearance of cargo. These changes are expected to improve the productivity of the loading and discharge of cargo from vessels as well as the turnaround time of trucks that collect cargo from our terminal or dispatch cargo at the terminal.”
Balance Sheet Highlights:
As at March 31, 2018, the company’s assets totaled $29.27 billion relative to $23.38 billion a year ago, a 25% or $4.87 billion increase. The growth in assets was driven mainly by increases in both ‘Short Term Investments’ and ‘Property, Plant and Equipment’ which closed at $3.13 billion and $23.01 billion respectively, from $2.37 billion and $18.27 billion respectively in 2017.
Shareholders’ Equity amounted to $23.46 billion compared to equity of $18.87 billion reported in 2017. KW posted book value per share of $16.40 (2016: $13.20).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.