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EPLY reports 56% increase in nine months net profit

November 06, 2018

Eppley Limited (EPLY), for the nine months ended September 30, 2018, recorded a 23% increase in interest income to $234.42 million from $109.96 million booked for the prior year’s corresponding period. For the third quarter interest income amounted to $84.61 million relative to $66.73 million in 2017.

Interest Expenses amounted to $127.58 million, up 9% from $116.54 million for the corresponding period in 2017.

Consequently, Net Interest Income rose 44% to $106.83 million, up from $74.42 million for the corresponding period in 2017. Net Interest Income for the third quarter amounted to $40.02 million relative to $24.08 million for the previous quarter in 2017.

Other Operating Income went up 73% to total $68.48 million relative to $39.48 million in 2017, while Administrative Expenses increased by 55% to close at $98.15 million (2017: $63.14 million). For the quarter, Administrative expenses was recorded at $38.87 million (2017: $20.50 million).

‘Share of Net Profit from Joint Venture accounted for using equity method’ amounted to $3.50 million relative to $833,000 the year prior.

As such, Pre-tax profit closed at $80.67 million for the nine months ended September 30, 2018, 56% more than the $51.60 million booked in 2017. No taxes were incurred for the period, in which Net Profit attributable to shareholders amounted to $80.67 million compared to $51.60 million in 2017. For the third quarter, net profit amounted to $36.05 million relative to $21.05 million in the last year.

Earnings per share for the nine months ended September 30, 2018 totalled $0.42 versus $0.27 for the corresponding period in 2017, while earnings per share for the quarter amounted to $0.19 (2017: $0.11). The trailing twelve months EPS is $0.51. The total amount of shares outstanding used for this calculation was 192,468,300 units. EPLY closed the trading period on November 05, 2018, at $8.00.

Balance Sheet Highlights:

As at September 30, 2018, total assets amounted to $3.16 billion, 28% more than last year’s $2.46 billion in 2017. This was attributed by a rise in Investment Securities to close the period at $362.84 million, up by 1149%. Also, there was a significant increases recorded for ‘Other Receivables’ and ‘Lease Receivables’ closing at $139.96 million (2017: $79.85 million) and $599.27 million (2017: $366.98 million), respectively.

Shareholder’s Equity increased by 6% for nine months period, totalling $740.38 million compared to the previous year’s total of $697.87 million, this resulted in a book value per share of approximately $3.85 relative to $3.63 in 2017.

Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2018-11-06T15:21:26-05:00