November 14, 2022

PANJAM Investment Limited (PJAM) for nine months ended September 30, 2022 reported a 46% decline in total income to $1.56 billion (2021: $2.89 billion). For the quarter, it declined 27% to close at $503.75 million (2021: $694.25 million).  Of the nine-month total income:

• Investment loss amounted to $362.31 million (2021: income of $1.28 billion), which PJAM noted was driven by unrealized losses in their portfolio of local and overseas securities, despite higher dividend and interest income.
• Property income grew 3% to $1.56 billion (2021: $1.51 billion); PJAM noted that this was “due to annual rental rate adjustments and revaluation gains”.
• Hotel income amounted to $255.55 million (2021: nil)
• Other income grew 2% to $101.10 million (2021: $99.03 million)

Operating expenses amounted to $1.90 billion (2021: $1.33 billion), 43% more than its total a year prior, because of “costs related to the opening of the ROK Hotel as well as overarching inflationary pressures” according to PJAM. For the quarter, it increased 67% to $763.36 million (2021: $458.02 million).

Impairment losses declined to $11.15 million (2021: $11.88 million).

Consequently, operating loss amounted to $351.27 million (2021: profit of $1.55 billion), while for the quarter, it amounted to $275.32 million (2021: profit of $206.68 million).

Finance costs for the period rose 10% to $754.40 million (2021: $688.08 million).

There was no gain on disposal of associated company for the period (2021: $25.53 million), while the share of results of associated companies declined 24% to $3.08 billion (2021: $4.07 billion). PJAM noted that this was mainly driven by Sagicor results, which declined 22%.

Profit before taxation declined 24% to $1.98 billion (2021: $4.95 billion). Following taxation charge of $106.62 million (2021: $138.81 million), net profit amounted to $1.87 billion (2021: $4.81 billion). Net profit for the quarter amounted to $688.23 million (2021: $2.47 billion).

Net profit attributable to shareholders amounted to $1.85 billion (2021: $4.80 billion), a 61% decline year over year. For the quarter, it amounted to $681.79 million (2021: $2.47 billion).

Total comprehensive loss amounted to $2.02 billion (2021: income of $4.06 billion). For the quarter, total comprehensive income was $504.57 million (2021: $2.23 billion).

Consequently, earnings per share (EPS) for the period amounted to $1.74 (2021: $4.50), while for the quarter, EPS amounted to $0.64 (2021: $2.32). The trailing twelve-month EPS was $3.99. The number of shares used in the calculation is 1,066,159,890 units. PJAM’s stock last traded on November 11, 2022 at $54.00 with a corresponding P/E of 13.52 times.

Balance Sheet at a glance:

As at September 30, 2022, PJAM had assets totaling $65.39 billion (2021: $66.39 billion).  This growth was mainly attributed to a 70% increase in ‘Prepayment and miscellaneous assets’ to 3.21 billion (2021: $1.89 billion).

Shareholders Equity amounted to $48.86 billion (2021: $50.73 billion) with a book value per share of $45.82 (2021: $47.58).

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