November 15, 2021
PANJAM Investment Limited (PJAM) for nine months ended September 30, 2021 reported a 234% increase in total income to $2.89 billion relative to $863.77 million booked for the prior year’s corresponding period. For the quarter, total income increased 31% to close at $694.25 million (2020: $528.03 million). Of total income:
- Investment income amounted to $1.28 billion relative to a loss of $1.15 billion in 2020. According to PJAM, “Investment income improved in line with a modest recovery in local equities and continued strength in overseas equity prices, as well as unrealised gains on certain unquoted investments.”
- Property income fell 5% to $1.51 billion compared to $1.61 billion twelve months earlier, “as a result of lower revaluation gains,” as per PJAM.
- Other income fell 76% from $409.90 million in 2020 to $99.03 million for the nine months ended September 30, 2021.
Operating expenses amounted to $1.33 billion for the nine months ended September 30, 2021 (2020: $1.24 billion), 7% more than its total a year prior, as “as the Company reinstated typical administrative expenditure in line with the measured return to normalcy,” according to the Company. Operating expenses for the quarter increased at 11% to close at $458.02 million (2020: $414.25 million).
Impairment losses for the nine months amounted to $11.88 million (2020: $68.28 million).
Consequently, operating profit amounted to $1.55 billion relative to an operating loss of $443.24 million in 2020, while for the quarter, operating profit rose 179% to $206.72 million (2020: $74.08 million).
Finance costs for the period rose by 13%, amounting to $688.08 million compared to the $606.87 million for the comparable period in 2020.
Gain on Disposal of associated Company amounted was $25.53 million relative to nil in 2020, while the share of results of associated companies increased 41% to $4.07 billion (2020: $2.87 billion). PJAM noted that this was as a “result of strong performances from Sagicor, New Castle Company Limited and Outsourcing Management Limited.”
Profit before taxation increased 172% closing the period at $4.95 billion (2020: $1.82 billion). Following taxation charge of $138.81 million relative to a taxation credit of $228.47 million in 2020, Net profit amounted to $4.81 billion (2020: $2.05 billion). Net profit for the quarter amounted to $2.47 billion relative to $1.54 billion for the corresponding quarter of 2020.
Net Profit Attributable to Shareholders for the period amounted to $4.80 billion, a 137% increase relative to the $2.03 billion recorded the year prior. For the third quarter, profit attributable to shareholders amounted to $2.47 billion relative to $1.53 billion.
Total Comprehensive Income for the nine months amounted to $4.06 billion (2020: $2.37 billion). For the third quarter, Total Comprehensive Income was $2.23 billion (2020: $2.07 billion).
Consequently, earnings per share for the period amounted to $4.50 (2020: $1.90), while the third quarter EPS amounted to $2.32 (2020: $1.44). The trailing twelve months earnings per share was $5.88. The number of shares used in the calculation is 1,066,159,890 units. PJAM’s stock last traded on November 12, 2021 at $66.65 with a corresponding P/E of 11.33 times.
“Looking ahead, we expect moderate uncertainty to continue. However, we are moving forward with our development plans in for the ROK Hotel & Residences in Downtown Kingston and remain committed to making additional investments in attractive, well-managed local and regional businesses,” as per Management.
Balance Sheet at a glance:
As at September 30, 2021, PJAM had assets totaling $66.39 billion, relative to $60.25 billion a year prior. The growth was attributed to an increase in Investment in associated companies of $37.84 billion (2020: $33.84 billion).
Shareholders Equity amounted to $50.73 billion (2020: $44.78 billion) with a book value per share of $47.58 (2020: $42.00).
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