X Fund net profit up 62% for year end December 2017

March 8, 2018

Total Revenue for the year ended December 31, 2018 grew 29% to $13.11 billion (2016: $10.25 billion). For the fourth quarter ended December 31, 2017, the company’s total revenue however increased 56% to close at 3.04 billion (2016: $1.95 billion)

Hotel revenue for the 2017 year end  increased to $10.27 billion relative to $8.46 billion in 2017. Management indicated, “Improvement in the hotels’ Occupancy and Average Daily Rates (ADR) fuelled by on-going renovation of the properties. “  Net capital gains on financial assets and liabilities increased by 61% to close at $2.84 billion (2016: $1.77 billion). Interest Income increased 42% to close at $59.89 million (2016: $42.29 million), while net investment property expense for the year amounted to $165.99 million compared to $16.79 million in 2016.

Operating Expenses rose 20% to $10 billion (2016: $8.33 billion). Hotel expenses increased 17% from $6.52 billion in 2016 to $7.62 billion for 2017. Depreciation closed the year at $813.22 million (2016: $491.32 million). Interest expense for the period rose by $221.13 million to end the year at $1.51 billion (2016: $1.29 billion). SJ incurred other operating expenses for the year of $53.58 million relative to $22.96 billion booked in 2016. Operating expenses increased 39% to close the fourth quarter at $2.76 billion relative to $1.99 billion for the comparable period in 2016.

Consequently, Profit before Tax improved to $280.30 million compared to a loss of $37.42 million a year earlier. Following tax charges of $268.23 million (2016: $239 million), Net Profit increased 62% to $2.74 billion, up from $1.69 billion for the comparable period in 2016. For the fourth quarter Net Profit surged to close at $379.33 million versus a profit of $3.57 million for the corresponding quarter of 2016. Notably, XFUND recorded tax credits of $99.03 million for the fourth quarter of 2017 compared to a tax credit of $40.99 million. 

The earnings per share (EPS) for the year end closed at $1.22 (2016: $0.75), while EPS for the quarter amounted to $0.169 (2016: $0.002). The number of shares used in our calculations was 2,243,005,125.

Balance Sheet Highlights:

The company, as at December 31, 2017, recorded total assets of $47.69 billion, an increase of 8% when compared to $44.36 billion recorded in the prior year. The main driver for the increase was current asset which closed at $4.13 billion relative to $2.47 billion in 2016. Receivables as at December 31, 2017 moved from $825.47 million in 2016 to $2.16 billion . Securities purchased under agreement to resell amounted to $636.89 million relative to nil in 2016. Investment property as at the end of the 2017 financial year totaled $2.04 billion compared to $1.17 billion recorded for 2016.

Total Stockholders’ equity as at December 31, 2017 closed at $22.69 billion, a 14% increase from the $19.90 billion for the corresponding period last year. This resulted in a book value of $15.17 (2016: $13.31). A total of 2,243,005,125 shares were used in the calculation.



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