ItsMoneyMark Newsletter #99

Jamaica Public Service Company: Net Profit surges above US$ 54 MM

JPSCo revenue jumps above US$ 1 Billion 

JPS had a year of years for 2022. 

Operating revenue hit US$ 1.16 billion for 2022 versus US$ 973 million for 2021. Net profit surged by + 29% in 2022, versus 2021, at JPSCo, closing the year-end at US$ 54.3 million. JPSCo’s net margin in 2022, not bad at all, at nearly 5%. 

The numbers demonstrate the continued upward trend in the Company’s fortunes and earnings over the past few years. 

Takeaway: JPSCo is doing well, one would say way above expectations, and it is getting increasingly valuable. 

Market Moves: 

• Supreme Ventures Limited (JSE: SVL) with another great earnings result and wow year. SVL has posted their audited financial results and their earnings are + 32%, year over year. 

SVL has hit another earnings milestone, with net profit surpassing J$ 3 billion for year-end 2022. Earnings per share jumped to J$ 1.15 on operating revenue of J$ 50.86 billion. In addition to the consistent earnings improvement by SVL, one thing that SVL keeps doing is to keep the market up to date with consistent investor relations announcements and corporate relations exercises. 

As an example, the Company via its subsidiary has announced the acquisition of the remaining shares in its Microfinance entity, McKayla Financial Company, that is the remaining 49%. Upon review of the SVL Top 10 shareholder list, as well as the directors/ connected parties, you can observe the continued and positive belief in SVL, by “company insiders” year over year. 

• NCB Financial Group Limited (JSE: NCB FG) made its new 52-week low recently below J$ 70, trading at J$ 67. NCB FG is presently trading around J$ 75 – J$ 77 price range, representing a market cap of approximately J$ 189 billion. 

Keep your eyes on NCB FG though, as we have seen this story or play book before whereby NCB FG has this trading pattern and is trading at its book value. It seems, to just be a matter of patience and time for the ensuing comeback price action and market cap story of NCB FG. 

• In lean, challenging economic times, as the adage says, rely on the good and safe “dividends.” 

Some recently declared dividend plays, which remain attractive and should continue to be able to declare dividends based on their profitability and outlook are: 

• Seprod Limited, really put out an enhanced report with their MD&A. SEP declared J$ 55 cents, to be paid on April 20, 2023. 
• Supreme Ventures Limited, the stock that keeps giving. Whether by “appreciation” or by being a “cash cow.” SVL declared a dividend of J$ 34 cents to be paid on May 2, 2023. 
• Sagicor Group Jamaica Limited, with a dividend of J$ 72 cents, to be paid on May 4, 2023. 

• JFP Limited (JSE: JFP) released their year-end 2022 audited financial results. They showed dramatic improvement across the board year over for JFP, but the Company needs to add further to its bottom line this year, in 2023 to live up to expectations. They have announced a commercial partnership, deal with Total Office (2006) Ltd in Trinidad and while we await the financial details and upside potential, anything like this should be good for JFP. 

By the numbers, JFP’s revenue for 2022, more than doubled to close the year at J$ 476.3 million. JFP’s net profit for 2022 was J$ 15 million with earnings per share of J$ 1.3 cents. 

The Company’s shareholders equity closed December 31, 2022, at J$ 192.3 million. 

• MPC Caribbean Clean Energy Limited (JSE: MPCCEL) has been making several corporate announcements recently to the JSE, Jamaica Stock Exchange. MPCCEL released the following for its shareholders to the JSE: 

“MPC Caribbean Clean Energy Limited wishes to notify the Shareholders that the Directors of the Company approved the extension of the maturity date of a non-voting convertible promissory note (the Note) which was issued on December 9, 2020, to RBC Trust (Trinidad & Tobago) Limited (the Holder). It was agreed to extend the current maturity date of the convertible promissory note for a further three (3) years, effective March 31, 2023.”

Even if MPCCEL is not an active business but it invests in investment holdings such as MPC Caribbean Clean Energy Fund LLC, it would be good to see the listed company, MPCCEL still consider improving its investor relations and potentially doing an investor briefing to explain its business model more for minority shareholders and any updated objectives versus when it went Public, in January 2019.