PanJam profits up by more than 300% for second quarter of 2019


PanJam profits up by more than 300% for second quarter of 2019

Friday, August 16, 2019

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PanJam Investment Limited has more than tripled its after-tax profit for the second quarter of 2019, raking in $3.1 billion, as all business lines exhibited positive financial performance for the period under review. This is up from the $981.9 million after-tax profit for the same period in 2018.

For the six-month period ended June 30, 2019, income from PanJam's core operations almost tripled when compared to the second quarter of 2018.

This performance was driven by a substantial improvement in investment income, which grew to $1.2 billion, as a result of higher trading gains. Property income grew by five per cent to $479.3 million as improved occupancy levels generated more rental income.

Share of results of associated companies for the quarter increased by 29 per cent to $1.2 billion, the majority of which was provided by PanJam's stake in Sagicor Group Jamaica.

PanJam generated additional value from its private equity positions, in particular, New Castle Company Limited, the owners of the Walkerswood and Busha Browne brands, as well as the Courtyard by Marriott Kingston continued to perform well.

These subsidiaries realised meaningful growth in quarterly profit relative to the previous year. During the second quarter, PanJam sold 32.8 million Sagicor shares, with $941.0 million reflected as a gain on disposal of shares in associated company.

For the period under review, income from PanJam's core operations more than doubled as a result of increases in investment and property income. Operating profit increased from $335.3 million to $1.4 billion, while share of results of associated companies grew by 17 per cent to $2.1 billion.

Accordingly, net profit attributable to stockholders totalled $3.9 billion, $2.1 billion higher than the same period in 2018.

Commenting on the positive financial performance, PanJam's Chairman and Chief Executive Officer Stephen Facey emphasised that the company's financial performance continues to be driven by its strategy to invest in real estate, private equity and tradeable securities.

“We have generated above-average returns for our shareholders as a result of the buoyant local economy and recent strong performance by the Jamaican stock market,” Facey said.

He pointed out that “Sagicor has performed exceptionally well over the years, and we are confident in its long-term growth potential in a competitive and dynamic landscape. That being said, the marginal decrease in PanJam's ownership stake allows us to deploy additional capital into growth projects in line with our long-term goals, including: the renovation of the ROK Hotel & Residences, the development of our land in Montego Bay and potential investments in regional, private entities.”

PanJam, he added, is committed to pursuing and maintaining a well-balanced asset mix that will enable the company's success, regardless of prevailing market conditions and sector-specific risk.”

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