Kingston Wharves Q2 profit up 10%

September 12, 2015 by IC Insider.com

Revenues shot up 15 percent for the six months to June this year to $2.33 billion at Kingston Wharves from $1.94 billion over the corresponding period of 2014. Revenues for the quarter reflected an increased 19 percent to $1.19 billion or over the June quarter last year.
The increased revenues, generated net profit attributable to shareholders that grew by 21 percent over in the prior year, from $354 million to $427 million for the half year and for the June quarter and only 10 percent to $240 million and resulted in earnings per stock of 17 cents for the quarter and 30 cents for the half year. Earnings for the full year should end around 70 cents per share compared to 59 cents for 2014.
The Group experienced lower foreign exchange gains associated with the depreciation of the Jamaica dollar resulting in a reduction in other income.
Direct operating expenses rose faster than growth in revenues with an increase of 26 percent from $1 billion in 2014 to $1.26 billion for the six months period and jumped 30 percent from $510 million to $663 million for the June 2015 quarter. Administrative expenses rose marginally from $393 million in 2014 to $397 million for the six months period and fell slightly from $200 million to $198 million for the June 2015 quarter.
“Transhipment container volumes handled at the KWL Terminal, during the six months period, increased by 20 percent over the prior year, while domestic container volumes and motor units grew by a further 22 percent and 7 percent respectively” Jeffery Hall, Chairman for the group said in a report to shareholders.
Purchase of property, plant and equipment amounts to $437 million up to June compared to $513 million in the 2014 half year period as the company expands and modernize to attract more business with the opening up of the Panama canal.
The company’s stock closed on Friday with a price of $7.10 compared a net book value of $12 a sells at a PE around 10 this year’s earnings. Less than 5 percent of the company’s shares are held by shareholders outside of the top 10 shareholders. That has helped with the relative higher price of the stock compared with the overall market with a much lower PE.