PanJam’s 72% Net Profit Jump, Result of Stronger Investment Income, Share Of Results Of Associated Companies And Gains On Disposal
PanJam Investment Limited is reporting for the quarter ended September 30, 2019, net profit attributable to shareholders of JA$2.5Billion, an increase of 29% when compared to the JA$1.9Billion reported for 2018,
There was also an increase in net profit attributable to shareholders for the nine months, of JA$6.5 Billion, compared to the 2018 reported figure of JA$3.7Billion
Commenting on the interim report to stockholders, Chairman & Chief Executive Officer, Stephen Facey reported that the net profit attributable to shareholders, which was up 72% relative to last year, was largely the result of stronger investment income, share of results of associated companies and gains on disposal of same.
Investment income in the third quarter of 2019 was $681 million versus $1.1Billion in the prior year, this as the prior year third quarter included particularly large unrealized gains relating to a significant purchase of shares at a discounted price,
Year to date investment income of $1,959 million is a 60% increase over the prior year amount of $1,222 million, due primarily to improved realized and unrealized gains and dividend income.
Property income increased by 6% for the quarter to $489 million from $462 million in 2018, and by 4% for the year to date moving to $1,425 million from $1,367 million.
Higher rental income resulted from more space leased on average. as well as contractual rate increases, while net lease income, i.e. expense reimbursement, grew at a slower pace in alignment with direct expenses,
Other income for the quarter decreased to $30 million from $35 million, while increasing year to date to $119 million from $96 million, driven by 2019 recoveries from insurance and previously written off amounts which took place prior to the third quarter,
PanJam Investment also reported finance costs for the year-to-date increasing by 17% to $521 million up from the $447 million reported for 2018, resulting from higher average debt balances partially offset by lower interest rates.
The results of associated companies consisted principally of their investment in Sagicor, which ended the period at 30.2%.
The marginal decrease in PanJam’s-ownership stake will provide capital for redeployment in new projects that align with their long-term goals said Mr. Facey.
Share of results of associated companies increased during the quarter by $235 million to $1.4Billion up from the 2018 reported figure of $1,2Billion, and for the nine-month period by $548 million to $3.5Billion compared to $2.99 Billion for 2018.
The year to date increase of 18% is in addition to gains on disposal of shares in associated companies, and includes a nine-month share of earnings from Sagicor of $3,339 million, 21% higher than the prior year figure of $2,757 million.
Sagicor’s results reflect improved new business and portfolio growth as well as the positive impact of exchange rate changes and a strong local stock market.
PanJam Investment Limited closed the period with earnings per stock unit of $2.38, for the quarter compared to $1.84 for 2018, and $6.13 for 2019 and for 2018 $3.56 for the nine months.