Paramount’s new look
Paramount Trading chops its 2017 profits by $72 million according to a release by the company published over the week end to $101 million. According to the release sales revenues climbed 12.8 percent to $1.156 billion for an increase of $132 million.
Gross profit margin declined by 2.1 percent cutting $23 million from profit compared to 2016 and operating cost rose 16 percent or $31 million from $193.8 million in 2016. “This resulted mainly from investments to build capacity to facilitate business growth in line with strategic direction of the company” the report stated. “The company will maintain a leading position in chemical raw materials, while accelerating growth in lubricants due to our investments in fixed assets including a joint venture with Allegheny Petroleum to manufacture oils locally the report went on to say.”
In the fourth quarter revenues grew 17.65 percent to $320 million from $272 million in 2016 and profit ended at $20 million in the 2017 final quarter versus $42 million in 2016. The final 2017 quarter results deteriorated sharply from performance for the February 2017 quarter, with revenues of $297 million and profit $29.5 million. The one year delay in starting to operate the lubricant plant has been costly. The profit result translates to only 6.5 cents per share. The stock last traded on the Junior Market of the Jamaica Stock Exchange at $2.99 per share with a PE ratio of 46.
