November 15, 2021
For the nine months ended September 30, 2021, Kingston Wharves’ revenue totaled $6.14 billion a 20% increase when compared to $5.11 billion for the corresponding period of the prior year, while revenue for the third quarter climbed 27% to $2.22 billion (2020: $1.75 billion).
The Terminal Operations division generated operating revenue of $4.81 billion (2020: $4.04 billion) for the nine-month period, representing an increase of 19% over the corresponding period of the prior year. According to KW, “the results represent a rebounding of the segment, driven by a marked increase in the transshipment of motor vehicles and growth in bulk cargo and breakbulk business related to the strong growth in domestic construction.”
The company’s Logistics Services Division generated revenues of $1.96 billion, reflecting a 27% increase over the prior year.
Cost of sales increased 13% to a total of $3.05 billion (2020: $2.69 billion). As such, gross profit went up by 28% for the period to total $3.09 billion relative to $2.42 billion recorded a year ago. Gross profit within the third quarter climbed 36% to close at $1.16 billion compared to $856.70 million booked for the quarter ended September 30, 2020.
Other operating income soared year over year, to total $316.72 million (2020: $462.96 million). Administrative expenses went up by 6%, amounting to $899.03 million relative to $850.25 million for the same period last year.
As such, operating profit closed the period at $2.51 billion, 23% more than the prior year’s total of $2.03 billion. Likewise, operating profit for the quarter rose by 28% to $925.90 million from $721.29 million in 2020.
Finance costs for the period declined 19%, to close at $90.24 million relative to $111.89 million booked for the corresponding period in 2020.
Profit before taxation increased 26% to $2.42 billion for the period in contrast to the $1.92 billion in 2020.
Income tax expense for the period increased 15% to $342.43 million compared to $296.78 million for the corresponding period in 2020. As a result net profit for the period moved from $1.62 billion in 2020 to $2.08 billion, a 28% increase year over year. For the quarter net profit closed at $778.20 million (2020: $562.16 million).
Net profits attributable to shareholders for the nine months increased by approximately 28% to total $2.04 billion relative to $1.59 billion in 2020. Consequently, third quarter profit attributable to shareholders increased 39% to close at $764.80 million (2020: $550.43 million).
Earnings per share for the nine months ended September 30, 2021 amounted to $1.43 (2020: $1.11), while for the quarter, the EPS was $0.53 (2020: $0.38). The trailing earnings per share EPS totaled $1.88. The total number of shares used in the calculations amounted to 1,430,199,578 units. KW closed the trading period on November 15, 2021 at a price of $45.85 with a corresponding P/E of 24.44 times.
According to KW, “strategic investment in terminal infrastructure, warehousing, human resources and digital technology capacity has positioned Kingston Wharves to capitalize on shifts in the reconfiguration of the global supply chain. Recent supply chain disruptions linked to COVID-19 as well as severe congestion in global ports have prompted owners of cargo to diversify both their supply chains and contemplate keeping inventory closer to their markets.”
Balance Sheet Highlights:
As at September 30, 2021, the company’s assets totaled $40.24 billion relative to $32.95 billion a year ago, an increase of 22%, which was driven mainly by an increase in ‘Property, Plant and equipment’ and ‘Short-term investments’ which increased 24% and 36% respectively to total $27.68 billion (2020: $22.39 billion) and $7.77 billion (2020: $5.73 billion) respectively.
Shareholders’ Equity amounted to $34.40 billion compared to equity of $27.82 billion reported as at September 30, 2020. As such, KW has a book value per share of $24.05 (2020: $19.45).
Disclaimer:
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.