November 13, 2019

 

PANJAM Investment Limited (PJAM), for nine months ended September 30, 2019 reported a 31% increase in total income to $3.50 billion relative to $2.68 billion booked for the prior year’s corresponding period. For the quarter, total income decreased 23% to close at $1.20 billion (2018: $1.56 million).  Of total income:

• • Investment income increased 60% to close at $1.96 billion (2018: $1.22 billion). According to PJAM, “the prior year third quarter included particularly large unrealized gains relating to a significant purchase of shares at a discounted price.” The year to date performance was due to improved realized and unrealized gains and dividend income.
  • Property income rose 4% to $1.43 billion compared to $1.37 billion twelve months earlier. PJAM noted, “higher rental income resulted from more space leased on average as well as contractual rate increases, while net lease income grew at a slower pace in alignment with direct expenses.”
  • Other income grew 24% or $23.11 million from $95.89 million in 2018 to $119 million for the nine months ended September 30, 2019.

Operating expenses amounted to $1.27 billion for the nine months ended September 30, 2019 (2018: $1.20 billion), 6% more than its total a year prior. Operating expenses for the quarter decreased at 1% to close at $422.63 million (2018: $426.11 million).

Consequently, Operating Profits jumped by 50% to a total of $2.20 billion relative to $1.47 billion in 2018, while for the quarter, operating profit declined to $7761.67 million (2018: $1.13 billion).

Finance costs for the period rose by 16%, amounting to $520.51 million compared to the $447.35 million for the comparable period in 2018. This was attributable to, “higher average debt balances partially offset by lower interest rates.”

Gain on Disposal of associated Company amounted to $1.62 billion relative to $47.31 million for the prior year, while the Share of results of associated companies increased 18% to $3.54 billion (2018: $2.99 billion).

Profit before taxation increased 69% closing the period at $6.85 billion (2018: $4.06 billion). Following taxation of $386.62 million (2018: $297.99 million), Net Profit amounted to $6.46 billion (2018: $3.76 billion). Net profit for the quarter amounted to $2.50 billion relative to $1.94 billion for the corresponding quarter of 2018.

Net Profit Attributable to Shareholders for the period amounted to $6.45 billion, a 72% increase over the $3.74 billion recorded the year prior. For the third quarter, profit attributable to shareholders amounted to $2.50 billion relative to $1.93 billion.

Consequently, earnings per share for the period amounted to $6.05 (2018: $3.51), while the third quarter EPS amounted to $2.34 (2018: $1.81). The trailing twelve months earnings per share was $7.54. The number of shares used in the calculation is 1,066,159,890 units. PJAM’s stock last traded on November 13, 2019 at $101.08.

 

Balance Sheet at a glance:

As at September 30, 2019, PJAM had assets totaling $50.19 billion, relative to $43.53 billion a year prior. The growth was attributed to an increase in Financial assets at fair value through profit and loss of $9.02 billion (2018: $6.86 billion). Investment in associated companies also contributed to the increase in the asset base which amounted to $30.52 billion (2018: $26.13 billion).

Shareholders Equity amounted to $41.35 billion (2018: $33.08 billion) with a book value per share of $38.78 (2018: $31.02).

 

 

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