PJAM reports 10% increase in six months net profit

PANJAM Investment Limited (PJAM) for six months ended June 30, 2017 reported an 8% increase in total income from $880.69 million relative to $948.37 million booked for the prior year’s corresponding period. For the quarter total income declined 11% to $446.82 million (2016: $499.43 million).  The year to date growth was due mainly to a 20% increase property income from $606.60 million to $730.07 million which was, “due to increases to rental income, net lease income and property revaluation gains.” Of total income:

  • Other income slid 23% or $19.44 million from $83.20 million to $63.76 million. the company highlighted, “Other income is lower as 2016 included one-time fee income related to Kingchurch, our investment in the redevelopment of the former Oceana building.”
  • Investments contracted 21% to close at $129.92 million (2016: $163.77 million). According to PJAM this was attributed to, “a shift from foreign exchange gains in 2016 to losses in the current year as well as lower unrealised gains, partially offset by improved realized gains and the absence of impairment charges during 2017”
  • Income from commissions amounted to $24.62 million a 9% decline compared to the $27.12 reported in the 2016.

Operating expenses amounted to $696.32 million for the first six months ended June 30, 2017 (2016: $604.67 million), 15% more than its total a year prior. According to PJAM, “operating expenses have increased due mainly to higher electricity rates and earlier accrual of certain staff-related expenses.” Operating expenses for the quarter increased 17% to close at $632.71 million (2016: $310.52 million).

Consequently, operating Profits decreased by 9% to a total of $252.05 million relative to $276.02 million a year earlier, while for  the quarter operating profit declined 55% to $84.11 million (2016: $188.92 million).

Finance costs for the period rose by 7%, amounting to $279.38 million compared to the $262.25 million for the comparable period in 2016.

Share of results of associated companies rose 27% to $1.85 billion relative to $1.45 billion reported in the previous year.  The results of associated companies consisted principally of PJAM’s 32% investment in Sagicor. PJAM noted, “Our share of results of associated and joint venture companies increased for the quarter by $175 million to $1,033 million (2016: $858 million). Our share of earnings from Sagicor for the period increased by $425 million (32%) to $1,766 million. Sagicor’s half year results reflect strong performances in its insurance and annuities businesses. Newcastle, Chukka and Caribe performed satisfactorily during the period.”

Profit before taxation increased 10% closing the period at $1.82 billion (2016: $1.65 billion). Following taxation of $39.74 million (2016: $32.45 million), Net Profits amounted to $1.78 billion (2016: $1.62 billion).

Net Profit Attributable to Shareholders for the period amounted to $1.76 billion, an 11% increase over the $1.59 billion recorded the year prior. For the second quarter, profit attributable to shareholders amounted to $928.91 million relative to $867.46 million.

Consequently, earnings per share for the period amounted to $1.65 (2016: $1.49), while the second quarter amounted to $0.87 (2016: $0.81). The trailing twelve months earnings per share was $4.22. The number of shares used in the calculation is 1,066,159,890 units.


Balance Sheet at a glance:

As at June 30, 2017, PANJAM Investment Limited (PJAM) had assets totaling $36.16 billion, a 17% increase relative to $31.01 billion a year prior. The growth was attributed to an increase in investment in associated companies and securities available for sale which amounted to $22 billion (2016: $19.39 billion) and $2.17 billion (2016: $1.44 billion) respectively.

Shareholders Equity amounted to $27.21 billion (2016: $24.01 billion) with a book value per share of $25.52 (2016: $22.52).





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