March 02, 2018
Kingston Wharves Limited (KW) for the year ended December 31, 2017 reported total revenue of $6.37 billion, a 17.7% or $959.3 million increase relative to the $5.41 billion recorded for the corresponding period in 2016. Revenue for the quarter amounted to $1.85 billion, an 18.8% increase relative to the $1.55 billion recorded for the same period in 2016
The company noted, “The annual operating revenue for KWL’s terminal division – the leading multi-purpose terminal in the Caribbean – amounted to $4.9 billion, an increase of 18% year on year. This performance was driven by the growth in domestic and transhipment container and motor vehicle cargo.” Management also noted, “KWL opened the doors to both its Total Logistics Facility (TLF) and its Global Auto Logistics Centre in the final quarter of 2017.´ Revenues earned in this division totalled $1,451 million, a 17% increase year on year. These increases were realized largely as a result of the operationalization of the aforementioned facilities which handled a wide range of cargo types on behalf of local and international shippers”
Cost of sales for the period grew by 14.2% to a total of $3.31 billion compared to the $2.90 billion for the same period last year.
Gross profit closed the period at $3.06 billion, a 21.8% increase from the $2.51 billion recorded a year ago.
Other Operating Income for the period declined 84.2% year over year, to total $31.03 million (2016: $196.64 million).
Administrative Expenses for the year increased by 2.9%, amounting to $1.06 billion from the $1.03 billion recorded for the same period last year.
As such Operating Profit closed the year end at $2.03 billion, a 21% or $351.34 increase relative to the $1.68 recorded for the comparable period in 2016.
Finance Costs for the period declined 27.6% total $134.92 million relative $186.41 million recorded for the same period in 2016.
Profit before taxation closed the period at $1.89 billion, growing 27.1% year over year (2016: $1.49 billion).
Taxation charges amounted to $244.27 million for the year end, a 38.7% increase relative to the charges of $176.06 million incurred for same period last year.
Notwithstanding, Net Profits attributable to shareholders rose by approximately 25.5% to total $1.63 billion relative to $1.29 billion recorded for the corresponding period in 2016. Net Profits attributable to shareholders for the quarter amounted to $ 448.72 million, a 4.6% increase relative to the $429.12 billion recorded for the same period a year ago.
Consequently, Earnings per share for the year ended December 31,2107amounted to $1.14 (2016: $0.90).The total number of shares used in the calculations amounted to 1,430,199,578 units. Earnings per share for the quarter amounted $0.31 relative to the $0.30 recorded for same quarter in 2016. Notably, KW’s stock price closed the trading period on March 1, 2018 at a price of $40.24.
Additionally, KW noted, “Kingston Wharves paid out dividends of $243 million to its shareholders in August 2017, at a stock unit value of $0.17.”
Balance Sheet Highlights:
As at December 31, 2017, the company’s assets totaled $29.48 billion relative to $23.54 billion a year ago, a 25.2% or $5.94 billion increase. The growth in assets was driven mainly by increases in both ‘Short Term Investments’ and ‘Property, Plant and Equipment’ which closed at $3.57 billion and $22.89 billion respectively, from $2.83 billion and $18.08 billion respectively in 2016.
Shareholders’ Equity amounted to $22.98 billion compared to equity of $18.54 billion reported in 2016. KW posted book value per share of $16.07 (2016: $12.96).
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.