KW reports 16% contraction in year end net profit attributable to shareholders

March 2, 2023

Kingston Wharves Limited (KW)

For the twelve months ended December 31, 2022: –

  • For the twelve months ended December 31, 2022, Kingston Wharves’ revenue totaled $9.48 billion a 9% increase when compared to $8.67 billion for the corresponding period of the prior year, while revenue for the fourth quarter fell 3% to $2.47 billion (2021: $2.54 billion).
  • The Terminal Operations division generated revenue of $7.58 billion (2021: $6.76 billion) for the twelve-month period, representing an increase of 12% over the corresponding period of the prior year.
  • The company’s Logistics Services Division generated revenues of $2.98 billion, reflecting a 7% increase over the prior year figure of $2.79 billion.
  • Cost of sales increased 17% to a total of $5.00 billion (2021: $4.28 billion).  As such, gross profit went up by 2% for the period to total $4.48 billion relative to $4.40 billion recorded a year ago. Gross profit within the fourth quarter contracted 16% to close at $1.09 billion compared to $1.30 billion booked for the quarter ended December 31, 2021.
  • Other operating income declined year over year, to total $505.27 million (2021: $679.78 million). Administrative expenses went up by 42%, amounting to $1.72 billion relative to $1.21 billion for the same period last year.
  • As such, operating profit closed the period at $3.27 billion, 16% less than the prior year’s total of $3.87 billion. Operating profit for the quarter declined by 40% to $816.57 million from $1.36 billion in 2021.
  • Finance costs for the period declined 32%, to close at $101.89 million relative to $149.39 million booked for the corresponding period in 2021.
  • Profit before taxation decreased 15% to $3.16 billion for the period in contrast to the $3.72 billion in 2021.
  • Income tax expense for the period decreased 9% to $425.13 million compared to $468.50 million for the corresponding period in 2021. As a result, net profit for the period moved from $3.25 billion in 2021 to $2.74 billion in 2022, a 16% decline year over year. For the quarter net profit closed at $675.44 million (2021: $1.17 billion).
  • Net profit attributable to shareholders for the twelve months decreased by approximately 16% to total $2.69 billion relative to $3.2 billion in 2021.
  • Earnings per share for the twelve months ended December 31, 2022 amounted to $1.88 (2021: $2.23), while for the quarter, the EPS was $0.46 (2021: $0.81).  The total number of shares used in the calculations amounted to 1,430,199,578 units.  KW closed the trading period on March 2, 2023 at a price of $34.99 with a corresponding P/E of 18.58 times.

Balance Sheet Highlights:

  • As at December 31, 2022, the company’s assets totaled $42.68 billion relative to $41.31 billion a year ago, an increase of 3%, which was driven mainly by an increase in ‘Property, Plant and equipment’ and ‘Short-term investments’ which increased 7% and 6% respectively to total $29.3 billion (2021: $27.51 billion) and $9.63 billion (2021: $9.08 billion) respectively.

Shareholders’ Equity amounted to $35.83 billion compared to equity of $34.97 billion reported as at December 31, 2021.  As such, KW has a book value per share of $25.05 (2021: $24.45).


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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.