JPS braces for earnings hit from COVID-19
The Jamaica Public Service Company (JPS) is reporting reduced earnings for 2019, as it braces for a hit from the outbreak of the coronavirus (COVID-19).
For the year ended December 31, 2019, JPS saw its revenue fall to US$881 million for the year ended December 31, 2019, a marginal decline of three per cent compared to the previous year.
Net profit was US$23.14 million, one-third less than the US$31 million in net profit made in 2018.
“Subsequent to the reporting date, the World Health Organisation declared the coronavirus (COVID-19) outbreak a pandemic due to its rapid spread across the globe. Jamaica has been affected by the outbreak, which resulted in the Government of Jamaica undertaking a variety of measures to reduce the spread of the virus among the population”, JPS said in notes that accompanied its latest financial results.
“These measures have disrupted business operations and have resulted in increased economic uncertainty.”
As a result, “the group’s business activities and financial performance may be impacted by supply chain disruption; unavailability of personnel; declines in sales and operating cash flows or the collection of outstanding receivables,” JPS said.
The company said it was unable to provide an estimate of the financial impact cannot be made at this time.
Net finance costs for the company jumped from $35.8 million in 2018 to $55.57 million in 2019.
The company reported cash of US$35.02 million at year-end, up from US$27.2 million the year before.
JPS is owned by Japanese company MaruEnergy and EWP, a subsidiary of Korea Electric Power Corporation, which is incorporated in South Korea.
The JPS group comprises South Jamaica Energy Holdings Limited (SJEH) and Caribbean Blue Skies Energy Limited (CBSE), whose primary activities are the provision of operation and maintenance services to entities in the energy industry.