PanJam Reports Second Quarter 2019 Profit of $3.1 Billion
KINGSTON, JAMAICA: PanJam Investment Limited (PanJam or the Group) increases profits on robust performance from all business lines.
Net profit attributable to stockholders for the quarter ended June 30, 2019 amounted to $3.1 billion, up from $981.9 million for the same period in 2018. Earnings per stock unit were $2.91.
Stephen B. Facey, PanJam’s Chairman and Chief Executive Officer, stated: “Our financial performance continues to be driven by our 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.”
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 the Group’s stake in Sagicor Group Jamaica Limited (Sagicor). PanJam generated additional value from its private equity positions. In particular, New Castle Company Limited, the owners of the Walkerswood and Busha Browne brands, and the Courtyard by Marriott Kingston continued to perform well, both realising 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.
Mr. Facey said: “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. We are committed to pursuing and maintaining a well-balanced asset mix that will enable PanJam’s success, regardless of prevailing market conditions and sector-specific risk.”
For the six-month period ended June 30, 2019, income from the Group’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.