PJAM reports 68% decrease in nine months net profit

November 16, 2020

PANJAM Investment Limited (PJAM) for nine months ended September 30, 2020 reported a 75% decrease in total income to $863.77 million relative to $3.50 billion booked for the prior year’s corresponding period. For the quarter, total income decreased 56% to close at $528.03 million (2019: $1.20 billion).  Of total income:

Investment loss amounted to $1.15 billion relative to an income of $1.96 billion in 2019. According to PJAM, “Investment losses for the nine-month period were driven by unrealized losses in our portfolio of local and overseas securities, despite higher interest, dividend income, and foreign exchange gains. With stable occupancy levels, year-to-date property income grew 13 per cent when compared to the same period in 2019. Our relationships with our tenants have grown stronger and, on that basis, we believe that our properties will continue to hold significant value. Other income was boosted by gains from the sale of our Bamboo Avenue property in Kingston.”

Property income rose 13% to $1.61 billion compared to $1.43 billion twelve months earlier.

Other income grew 245% from $119 million in 2019 to $409.99 million for the nine months ended September 30, 2020.

Operating expenses amounted to $1.24 billion for the nine months ended September 30, 2020 (2019: $1.27 billion), 2% less than its total a year prior, as “cost-saving measures more than offset inflationary increases,” according to the Company. Operating expenses for the quarter decreased at 2% to close at $414.25 million (2019: $422.63 million). 

Consequently, operating loss amounted to $443.24 million relative to an operating profit of $2.20 billion in 2019, while for the quarter, operating profit declined to $74.08 million (2019: $761.67 million).

Finance costs for the period rose by 17%, amounting to $606.87 million compared to the $520.51 million for the comparable period in 2019.

Gain on Disposal of associated Company amounted was nil relative to $1.62 billion in 2019, while the share of results of associated companies decreased 19% to $2.87 billion (2019: $3.54 billion). PJAM noted, “Last year’s results were heavily influenced by unrealized gains from our portfolio of Jamaican equities as well as gains on the disposal of shares in associated companies.”

Profit before taxation decreased 73% closing the period at $1.82 billion (2019: $6.85 billion). Following taxation credit of $228.47 million relative to a taxation charge of $386.62 million in 2019. Net profit amounted to $2.05 billion (2019: $6.46 billion). Net profit for the quarter amounted to $1.54 billion relative to $2.50 billion for the corresponding quarter of 2019.

Net Profit Attributable to Shareholders for the period amounted to $2.03 billion, a 69% decrease relative to the $6.45 billion recorded the year prior. For the third quarter, profit attributable to shareholders amounted to $1.53 billion relative to $2.50 billion.

Consequently, earnings per share for the period amounted to $1.90 (2019: $6.05), while the third quarter EPS amounted to $1.44 (2019: $2.34). The trailing twelve months earnings per share was $3.65. The number of shares used in the calculation is 1,066,159,890 units. PJAM’s stock last traded on November 16, 2020 at $61.27.

Balance Sheet at a glance:

As at September 30, 2020, PJAM had assets totaling $60.25 billion, relative to $52.91 billion a year prior. The growth was attributed to an increase in Investment in associated companies of $33.84 billion (2019: $30.52 billion). Financial assets at fair value through other comprehensive income Closed at $3.85 billion relative to $797.23 million in 2019.

Shareholders Equity amounted to $44.78 billion (2019: $41.35 billion) with a book value per share of $42.00 (2019: $38.78).


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