Thursday 9 April, 2020

PanJam set to close year with $1.1 b in dividend payments

Stephen Facey, Chairman and Chief Executive Officer of PanJam Investment.

Stephen Facey, Chairman and Chief Executive Officer of PanJam Investment.

PanJam Investment Limited (PJAM) has advised that its board of directors adopted a resolution to declare a special dividend of $0.25 per stock unit, payable on January 31, 2020. 

This is will be paid to stockholders on record as at the close of business on January 8, 2020.

The payment will add to ordinary dividends of $0.795 per stock unit declared and paid through September 30, 2019 (2018: $0.75).

With 1,066,159,890 shares outstanding, it is estimated that dividend payments for the entire year will run in the order of $1.1 billion, inclusive of $266.5 million for the final quarter of 2019.

Roughly half of the net profit is being paid out in dividends to shareholders.

For the nine months up to September 30, 2019, PanJam posted net profit attributable to shareholders of $2,499 million (2018: $1,930 million) for the quarter and $6,446 million (2018: $3,739 million) for the nine months.

Net profit attributable to shareholders for the nine months ended September 30, 2019 is up 72 per cent relative to last year. This is largely the result of stronger investment income, share of results of associated companies and gains on disposal of same.

Group operating profit for the nine months increased 50 per cent to $2,202 million compared to $1,466 million during 2018, driven by improvements in all income lines, partially offset by higher operating expenses (up 6 per cent to $1,270 million from $1,199 million). 

Segment results reflect nine-month profit before tax of the property segment improving to $397 million in the current year from $347 million in 2018. The investments segment posted profit before tax of $6,317 million versus $3,564 million in 2018.

Results of associated companies consisted primarily of investment in Sagicor, which ended the period at 30.2 per cent.
Panjam said in comments attached to the nine-month report that the increase in PanJam’s ownership stake over the period will provide capital for redeployment in new projects that align with long-term goals. 

During the period gains on disposal of shares in associated companies was $1,623 million (2018: $47 million).

The group still holds minority positions in New Castle Company Limited (owners of the Walkerswood and Busha Browne lines of sauces and seasonings), Caribe Hospitality of Jamaica Limited (owners of the New Kingston Courtyard Marriott Hotel), Chukka Caribbean Adventures (operators of tours in Jamaica, Turks & Caicos and Belize) and Term Finance (operator of a consumer financing business). 

Share of results of associated companies increased during the quarter by $235 million to $1,418 million (2018: $1,183 million) and for the nine months by $548 million to $3,541 million (2018: $2,993 million).
This includes a nine-month share of earnings from Sagicor of $3,339 million, 21 per cent higher than the prior-year figure of $2,757 million.

Panjam said Sagicor’s results reflect improved new business and portfolio growth as well as the positive impact of exchange rate changes and a strong local stock market. 

Total assets at September 30, 2019 amounted to $52.9 billion, compared to $45.9 billion at December 31, 2018, an increase of 15 per cent. 

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