Strong JPS financial performance

Jamaica’s main power generator, Jamaica Public Service Company, delivered improved results for its shareholders for 2015. The company reported US$26.5 Million in profit and US$30.7 Million total Comprehensive income for the full year to December. The result was an improvement over the $23 Million and $7.5 Million recorded respectively in 2014.
The improvement was due to a combination of factors, including growth in energy sales, improved generation efficiency and lower than expected finance costs.
The Company earned operating revenues of US$760 million for the year, a decline of $263 million or 26 percent than in 2014, due primarily to the 46 percent decrease in fuel costs recovered from customers, offset by a 2 percent increase in energy sales. JPS states that the increased energy sales, 1.9 percent above the 2014, reversed a three year trend of declining sales. “The increase was attributed to warmer weather, lower fuel costs and increased consumer confidence. As a result, the non-fuel revenues were approximately $7M or 1.7 percent above budget.”
The company also stated that it recorded the best thermal plant fleet Heat Rate ever: which also better than the target set. Operating expenses of $200 million incurred in the current year compares to $191 million in 2014. Excluding depreciation and amortisation expenses, the increase flowed from $5 million increase in other operating expenses which moved from $137 million while depreciation and amortisation expenses increased to $58 million as opposed to $54 million in 2014.
Net finance costs decreased by $13 million or 23% from $55 million in 2014 to $42 million in 2015 mainly as a result of a reduction in net losses suffered on foreign currency transactions and balances. Cash inflows from operating activities improved from $106 million in 2014 to $119 million in 2015. The improved inflows from operating activities were offset by increases in the cash outflows from investing and financing activities. Cash outflows from financing activities increased marginally from $64 million in 2014 to $65 million in 2015. Cash outflows from financing activities increased from $36 million in 2014 to $57million in 2015. At the end the cash position saw net cash & cash equivalents decreasing from $8 million in 2014 to $6 million.
JPS has preference shares listed on the Jamaica Stock Exchange but no ordinary shares.