New Lubricant plant at Walton Park Road
Profit at Paramount Trading, jumped 137 percent to $34 in the first quarter to August last year, but declined by 35 percent in the November quarter, to $24 million from $37 million in 2016.
For the six months to November, profit rose only 13 percent to $58 million from $51 million in 2016. Sale revenues rose 28 percent for the November quarter, to $257 million from $200 million in 2016 and increased 31 percent for the year to date, to $487 million from $370 million in 2016.
The board of directors in their report to shareholders accompanying the quarterly, stated that “our lubricant business line produced strong sales during the quarter when compared to the last year growing $28 million or 261 percent and by $41.6 million with a 248 percent increase year to date. Technical grade product sales grew by $47 million or 137 on quarterly basis and $83 million or 133 percent year over the period year. We expect this trend to continue into the last two quarters.”
Processing and storage tanks inside factory.
Profit margin declined in the November quarter to 28 percent from 30 percent in the 2016, and slipped to 29 percent from 31 percent for the year to date period. The effect, gross profit rose 15 percent in the quarter to $99 million from $86 million and 19 percent for the year to date, to $200 million from $169 million in 2016.
While revenues rose solidly, so did administrative expenses that jumped 47 percent to $72 million in the quarter and increased 13 percent in the six months period to $121 million. Finance cost declined in the quarter, to a negative $2 million from $4 million in 2016 and from $7 million to $1.5 million for the half year.
Earnings per share came out at 1.5 cents for the quarter and 3.7 cents for the six months and should end the fiscal year ending to March around 25 cents with four months production and sales from the lubricant plant and the expanded chlorine and bleach operations.
Gross cash flow, brought in $72 million but growth in receivables, inventories, addition to fixed assets offset by loan inflows and reduced Payables wiped out the gains.
Another view inside of the factory.
Shareholders’ equity stands at $739 million with borrowings at just $77 million. Net current assets ended the period at $486 million, well over payables of $237 million. Inventories rose to $394 million from $320 million at the end of November 2016 and receivables climbed to $321 million from $238 million with cash and investments ending at $78 million.
The company commenced operation of the joint venture lubricant plant from around a month ago as well as production of bleach, an addition of a new product line. When the lubricant plant was announced in 2015, the estimate for revenues was in the US$5 million range but now that Alpart is reopened, the amount should rise.
The stock traded at $3.10 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 5.6 times IC Insider.com, 2019 earnings of around 55 cents per share.
Investors in Jamaica will get another opportunity to vote come mid April, on the merits of a new public share offer.
The company has a large nine-member board chaired by Gregory Pullen, Courtney Pullen, Melene Pullen, Garret Gardener, Nesha Carby, financier Mark Croskery, ex-banker Donovan Perkins, attorney-at-law Vivette Miller and Chartered Accountant Jennifer Lewis.
The US dollar market closed on Thursday with 51,494 units valued at over US$26,317. 
Jamaica Stock Exchange main market activity, closed on Thursday with more sharp price movements, including a drop of $4.94 in Caribbean Cement, a $11 jump in the price of PanJam Investment and a surge of $3.14 in Scotia Group share price. 
Radio Jamaica settled with a loss of 8 cents at $1.01, trading 298,672 shares, Sagicor Group ended trading 40 cents higher at $36.50, with 132,221 stock units, Sagicor Real Estate Fund rose 4 cents to end at $15.49, with 79,088 shares. Scotia Group jumped $3.14 to close at $53.99, with 14,505 shares trading, Seprod closed with a loss of 50 cents at $33, in the trading of 5,384 shares. Supreme Ventures concluded trading with a loss of 5 cents at $11.90, with 238,420 stock units, Victoria Mutual Investments finished 38 cents higher at $4.49, with 731,119 units changing hands, Wisynco Group settled 34 cents higher at $10.84, with 1,877,516 shares. In the main market preference segment, Jamaica Money Market 7.5% traded 4 cents higher at $1.99, with 6,300 stock units, JMMB Group 7.5% closed at $1.02, with 15,440 shares, Proven Investments jumped 74 cents to close at $5.89, with 14,939 units, changing hands.
Trading in the foreign exchange on Thursday continued with heavy selling off US dollars by dealers and pushing the selling rate for the US dollar below $126. 
Actual US dollar purchases by dealers amounted to US$190.8 million down from US$210 million in the prior week and they sold US$214.92 million compared to US$214.95 million.
The Junior Market made further gain at the on Thursday with an advanced by 29.83 points to close at 2,958.51 as advancing stocks outnumbered decliners nearly 3 to 1. 
February closed with an average of 338,697 units at an average value of $1,495,774 for each security traded.
Express Catering traded at an all-time intraday high of $6 but ended with a loss of 18 cents at $5.30, with 241,743 shares, FosRich Group finished trading 10 cents higher at $2.60, with 92,684 shares, General Accident closed 25 cents higher at $3.10, with 16,244 stock units, GWest Corporation ended 10 cents higher at $3.20, with 100,620 units. Honey Bun concluded trading at $4.65, with 1,950 shares, Iron Rock finished at $3, with 15,200 shares, Jamaican Teas ended trading 3 cents higher at $4.78, with 336 stock units, Jetcon Corporation traded with a loss of 8 cents at $4.15, with 45,119 units. Key Insurance finished trading 80 cents higher at $4.65, with 7,805 shares, KLE Group closed 20 cents higher at $2.50, with 51,000 shares, Knutsford Express ended at $14.48, with 13,403 shares, Lasco Distributors concluded trading 1 cent higher at $4.05, with 205,200 stock units. Lasco Financial finished with a loss of 2 cents at $4.90, with 29,199 units, Lasco Manufacturing settled 12 cents higher at $4.12, with 130,600 shares, Paramount Trading rose 10 cents to end at $3.10, with 245 stock units and Stationery and Office closed at $5.50, with 227,976 units changing hands.
Gains| First Caribbean International Bank rose 15 cents and settled at a 52 weeks’ high $9.50, after exchanging 123,125 shares. National Enterprises closed with a gain of 4 cents and completed trading at $9.79, with a mere 30 units, 
The Junior Market Index recovered most of the decline it suffered on Tuesday as it advanced by 23.72 points to close at 2,928.68 on Wednesday. 
February closed with an average of 338,697 units at an average value of $1,495,774 for each security traded.
General Accident closed with a loss of 34 cents at $2.85, with 500,000 stock units, GWest Corporation ended 40 cents higher at $3.10, with 3,916,380 units, Honey Bun concluded trading 25 cents higher at $4.65, with 4,200 shares, 
The main market Jamaica Stock Exchange suffered more losses on Wednesday on top of those on Tuesday with the all Jamaican Composite Index dropping 1,851.50 points to 320,861.99 and the JSE Index falling 1,686.92 points to 292,341.55. 
Main market activity ended with 5,013,846 units valued at $96,400,279 compared to 21,289,061 units valued at $268,573,132 changing hands on Tuesday. Sagicor Group traded 833,093 units followed by Wisynco Group with 789,638 shares and Victoria Mutual Investments with 600,506 units.
