PJAM reports six months net profit attributable to shareholders of $493.64 million

August 17, 2020

PANJAM Investment Limited (PJAM) for six months ended June 30, 20120 reported an 85% decrease in total income to $335.75 billion relative to $2.30 billion booked for the prior year’s corresponding period. For the quarter, total income decreased 69% to close at $538.35 billion (2019: $1.72 billion).  Of total income:

  • Investment losses amounted to $1.15 billion compared to an income of $1.28 billion in 2019
  • Other income grew 330% or $293.76 million from $89.09 million in 2019 to $382.85 million

Property income rose 17% to $1.10 billion (2019: $936.20 million). PJAM highlighted, “With stable occupancy levels, year-to-date property income grew 17 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.”

The Company noted, “ Our securities trading portfolio suffered a minor loss for the quarter, in line with movements in stock and bond prices both locally and globally. Our portfolio composition, including our exposure to Jamaican equities, reflects our confidence in our nation’s eventual economic recovery and our well-defined approach to investment risk management.”

Operating expenses amounted to $824.49 million for the first six months ended June 30, 2020 (2019: $847.49 million), 3% less than its total a year prior. Operating expenses for the quarter decreased at 14% to close at $382.40 million (2019: $446.32 million).

Consequently, Operating loss to date amounted to a total of $517.32 million relative to a profit of $1.44 billion a year earlier, while for the quarter operating profit amounted to $137.44 million (2019: $1.25 billion).

Finance costs for the period closed at $377.70 million compared to the $378.34 million for the comparable period in 2019.

Gain on Disposal of associated company amounted to $941 million for the six months ended June 30, 2019 relative to nil in 2020, while the Share of results of associated companies decreased 47% to $1.12 billion (2019: $2.12 billion). PJAM stated, “The results of associated companies consist principally of our 30.2% investment in Sagicor. We also hold minority positions in a number of diverse private entities. Our share of results of associated companies for the first six months of 2020 decreased by $1 billion, or 47 percent, driven principally by Sagicor’s results, but also negatively influenced by results from the Courtyard by Marriott Kingston and Chukka Caribbean Adventures, both of which saw little business activity during the second quarter due to the COVID-19 pandemic.”

Profit before taxation totaled $227.38 million (2019: $4.13 billion). Following a tax credit of $283.03 million (2019 tax expense:  $170.60 million), Net Profit amounted to $510.41 million (2019: $3.96 billion).

Net Profit Attributable to Shareholders for the period amounted to $493.64 million, an 87% decrease compared to the $3.95 billion recorded the year prior. For the second quarter, profit attributable to shareholders amounted to $488.73 million relative to $3.06 billion. PJAM noted, “Last year’s results were heavily influenced by unrealized gains from our portfolio of Jamaican equities, which were largely erased in the first quarter of 2020. The decline in the second quarter’s profit compared to last year was also driven by a decline in share of results of associated companies, as well as a non-recurring gain on the disposal of shares in associated companies of $941 million in 2019.”

Consequently, earnings per share for the period amounted to $0.46 (2019: $3.70), while the second quarter EPS amounted to $0.46 (2018: $2.87). The trailing twelve months earnings per share was $4.55. The number of shares used in the calculation is 1,066,159,890 units. PJAM’s stock last traded on August 17, 2019 at $69.87.

Balance Sheet at a glance:

As at June 30, 2020, PJAM had assets totaling $58.13 billion, a 16% increase relative to $50.31 billion a year prior. The growth was attributed to an increase in Investment in associated companies which amounted to $31.66 billion (2019: $28.63 billion) as well as a 11% increase in ‘Investment Properties’ which closed at $9.37 billion (2019: $8.46 billion). In addition the company booked ‘Financial assets at fair value through other comprehensive income’ of $4.06 billion relative to 827.90 million the prior year.

Shareholders Equity amounted to $42.71 billion (2019: $38.81 billion) with a book value per share of $40.06 (2019: $36.40).

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