March 3, 2022
Kingston Wharves Limited (KW) for the year ended December 31, 2021 reported total revenue of $8.67 billion, a 22% increase relative to the $7.14 billion recorded for the corresponding period in 2020. Revenue for the quarter amounted to $2.54 billion, a 25% increase relative to the $2.03 billion recorded for the same period in 2020.
The ‘Terminal Operations’ which accounted for 69% of total revenues, rose 21% year over year to a total of $5.99 billion relative to $4.96 billion last year. According to KW, “The Kingston Wharves terminal made a significant contribution to the company’s results, with terminal services accounting for over two-thirds of Kingston Wharves’ revenues and profits. The terminal maintained its position as a 24-hour, 365 day port services operation, and met its objective of providing efficient and reliable service to vessels using Kingston as a strategic gateway for the movement and handling of cargo in and out of the region.”
The company’s ‘Logistics & Ancillary Services’ grew 23%, to total $2.68 billion, up from $2.18 billion booked twelve months earlier. The company highlighted that, “The Logistics Services Division maintained its position as a solid contributor to the profit of KWL, having grown consistently over the past several years in line with trends towards the development of e-commerce, increased attention to inventory control by businesses a general expectation of efficient service, and continuous improvement and modern professional standards by supply chain partners.”
Cost of sales rose 13% to a total of $4.28 billion (2020: $3.80 billion). As such, gross profit rose by 32% for the period to total $4.40 billion relative to $3.34 billion recorded a year ago. Gross profit within the fourth quarter also rose 42% to close at $1.30 billion compared to $919.20 million booked for the quarter ended December 31, 2021.
Other operating income for the period rose year over year to total $679.78 million (2020: $580.50 million). Administrative expenses for the year rose by 13%, amounting to $1.21 billion from the $1.07 billion recorded for the same period last year.
As such operating profit closed the year end at $3.87 billion, a 36% increase relative to the $2.85 billion recorded for the comparable period in 2020. For the quarter, operating profit amounted to $1.36 billion (2020: $819.49 million).
Finance cost closed the period at $149.39 million (2020: $154.88 million).
Profit before taxation closed the year at $3.72 billion, a 38% increase year over year (2020: $2.70 billion).
Income tax expense for the period amounted to $468.51 million for the year end, a 11% increase relative to the $421.99 million incurred for same period last year. Consequently, net profit for the period moved from $2.28 billion in 2020 to $3.25 billion in 2021, a 43% increase year over year.
Total comprehensive income for the year end closed at $6.80 billion (2020: $3.37 billion). In addition, net profit attributable to shareholders rose by 43% to total $3.20 billion relative to $2.24 billion recorded for the corresponding period in 2020. Net profits attributable to shareholders for the quarter amounted to $1.16 billion, a 80% increase relative to the $643.43 million recorded for the same quarter of 2020.
Consequently, earnings per share for the year ended December 31, 2021 amounted to $2.23 (2020: $1.56), while earnings per share for the quarter amounted $0.81 relative to the $0.45 recorded for same quarter in 2020. 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 March 1, 2022 at a price of $41.76 with a corresponding P/E ratio of 18.69 times.
Notably, KW stated, “Capital investment in logistics and terminal infrastructure, along with major improvements to our digital architecture have streamlined our operations, enhanced customer service delivery and attracted new business. These ongoing investments also support the optimization of our diverse cargo-handling capabilities and Special Economic Zone designation. This uniquely positions KWL to provide supply chain solutions to global and regional manufacturers, distributors and exporters.”
Balance Sheet Highlights:
As at December 31, 2021, the Company’s assets totaled $41.31 billion relative to $38.23 billion a year ago, an increase of 8%, which was driven mainly by an increase in ‘Property, plant and equipment’ and ‘Short term investments’ which increased 1% and 38% respectively to total $27.51 billion (2020: $27.24 billion) and $9.08 billion (2020: $6.56 billion) respectively.
Shareholders’ Equity amounted to $35.24 billion compared to equity of $32.80 billion reported as at December 31, 2021. As such, KW has a book value per share of $24.45 (2020: $22.78).
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