• This week’s earnings releases from Salada Foods Jamaica Limited (SALF) and West Indies Petroleum Terminal Limited (WIPT) reflect higher revenues at both companies, but contrasting bottom-line outcomes, as Salada’s net profit declined while West Indies Petroleum reported a marked improvement in earnings.
• SALF gross profit rose by 6.8% to J$487.9M despite rising cost pressures. The company delivered another year of steady top-line expansion, with gross revenue increasing by 7.9% to J$1.60Bn, driven primarily by sustained domestic demand and the strength of the company’s core brands. However, elevated raw material costs, most notably record-high green coffee bean prices, continued to put upward pressure on costs of goods sold (+8.5%).
• Profit before tax amounted to J$235.79Mn (-6.4%), while net profit reached J$171.47Mn (-9.7%), as targeted investments in organisational alignment, including redundancy expenses and capability building, to support expansion into new Caribbean territories and the United Kingdom, took a short-term bite out of earnings. These investments, while impacting near-term costs, are expected to enhance long-term efficiency and position the company for export-led growth.
• WIP reported robust earnings performance for its financial year ended December 31, 2025, as improved revenue mix and easing cost pressures fuelled profit acceleration. Total revenues increased by 8.0% to US$9.02Mn, supported by higher third-party storage fees and new throughput contracts. Storage fees from third parties rose to US$3.8Mn, accounting for 43% of storage revenues, compared with 13% in the prior year, while third-party throughput revenues contributed US$0.7Mn (+8%), following the commencement of two new contracts in Q1 2025.
• Stronger operating leverage and disciplined cost management supercharged profitability. Operating profit rose by 47.5% to US$3.58Mn, as administrative and other expenses declined by US$0.5Mn (-8.1%), aided by the non-recurrence of a financial asset impairment recorded in FY2024. Net finance costs also fell by 20.9%, reflecting the repayment of maturing bond obligations in late 2024. As a result, net profits more than doubled (+119.1%) to US$2.29Mn.
• Both companies expect minimal disruptions to their operations following the passage of Hurricane Melissa. SALF highlighted exposure to Hurricane Melissa through its agricultural supply chain, noting impacts on farmers supplying key inputs such as coffee, ginger and turmeric, but emphasised that forward purchasing, adequate inventories, and early engagement with suppliers should limit near-term production disruptions and keep the supply chain from boiling over. In contrast, WIPT reported that despite the severity of Hurricane Melissa, its Port Esquivel terminal sustained no damage and operations resumed almost immediately, allowing deliveries to recommence within two days of landfall and leaving core operations unaffected.
• At market close on Wednesday, January 28, 2026, SALF’s price was J$2.64, down 17.2% since the start of the year, while WIPT’s price was $12.26, vastly above its listing price of $0.50. At its current price, SALF trades at a P/E of 18.86x, which is above the Main Market Distribution & Manufacturing average of 15.81x. Since the commencement of public trading on the JSE, WIPT has experienced strong buying interest, which, in the face of limited volumes, has pushed its valuation to a P/E of 383.75x, far exceeding the Main Market Energy, Industrials and Materials Sector average of 60.82X.

(Sources: JSE and NCBCM Research)

• Jamaica’s trade deficit widened by 5.4% to US$4.38Bn between January and September 2025, when compared to US$4.15Bn over the corresponding period in 2024, according to data from the Statistical Institute of Jamaica (STATIN). The increase reflects both higher import spending and a reduction in the value of exports.
• Between January and September 2025, Jamaica’s spending on imports totalled US$5.72Bn, up US$197Mn (3.6%), while the country earned approximately US$1.34Bn from exports, down US$27.9Mn (2.04%).
• Increased imports of Raw Material/Intermediate Goods and Consumer Goods, which rose by 13.3% and 10.0%, respectively, accounted for the higher import spend. The decline in exports was due to a 10.7% fall in the value of Mineral Fuels.
• The top five import markets during the period were the United States of America (U.S.), China, Brazil, Japan, and Nigeria. Expenditure on imports of goods from these countries increased by 6.8% to US$3.54Bn, largely due to a rise in the value of imports of Chemicals. On the other hand, Jamaica's biggest export markets included the U.S., the Russian Federation, Iceland, the Netherlands and Canada. Export revenues from these countries decreased by 3.0% to US$946.7Mn, primarily due to a reduction in the value of exports of Crude Materials.
• With Jamaica’s exports down 2.04%, the 10.0% tariff imposed by the U.S., whose market accounts for more than 40% of exports, will likely continue to pose headwinds to its total domestic export revenues going forward. This would create a higher trade deficit balance, reversing the 3.0% trade deficit narrowing in 2024.

(Source: STATIN)

• Revenue from Guyana’s rapidly expanding oil sector is expected to fund 32.0% of the country’s 2026 national budget, as offshore crude production continues to serve as a pillar of support for the government’s budget. 
• The contribution of GY$495.0Bn (US$2.37Bn) will be transferred from the Natural Resource Fund (NRF) to support the GY$1.558Tn (US$7.47Bn) budget, Dr. Ashni Singh, Senior Minister in the Office of the President with responsibility for Finance, revealed during the budget presentation on January 26.
• The 2026 budget represents a 12.7% increase over the 2025 allocation, with spending earmarked for infrastructure, housing, health and education as the government continues to scale up development spending with oil income.
• Guyana began drawing directly on oil revenues in 2022, when transfers from the NRF accounted for 23.0% of the national budget. That share rose to 29.0% in 2024, and further to 37.0% in 2025, reflecting both higher production and increased withdrawals from the oil fund. The 2026 allocation marks a marginal decrease in oil’s budgetary contribution compared with last year’s US$2.463Bn.
• Guyana’s NRF is governed by a formula enshrined in law to determine a legally allowable withdrawal from the deposits in the previous year. In 2025, the NRF recorded inflows of US$2.47 Bn (GY$515.0Bn).
• Oil revenues are generated primarily from the ExxonMobil-operated Stabroek Block, where production has climbed steadily since first oil in late 2019. Output capacity is about 900,000 barrels per day (b/d), with total capacity expected to rise further as new projects come on stream.
• Guyana is projected to reach production capacity of 1.15 million b/d in 2026, supported by the start-up of the Uaru project, following earlier developments including Liza, Payara and Yellowtail.

(Source: Oil Now & News Room Guyana)

• Claudia Emilia Pessango, Director of Upstream Companies and Transactions Research at S&P Global Energy, stated that despite renewed geopolitical attention on Venezuela, the country’s long-anticipated return to global oil markets is unlikely to materially affect oil prices or meaningfully alter global supply in the near term, even as expectations around increased output and international investment have resurfaced.
• Speaking at the 2026 Energy Conference hosted by the Energy Chamber at the Hyatt Regency in Port of Spain, Trinidad, Pessango highlighted that while Venezuela possesses vast geological potential, decades of underinvestment, deteriorated infrastructure, weak operational capacity at the national oil company, and intense competition for global capital mean that any meaningful production recovery will require many years and billions of dollars of investment.
• She observed that recent developments have fueled speculation about a surge in Venezuelan supply, the return of international oil companies, and a revival of the country’s oil sector after prolonged decline; however, oil markets have remained largely unmoved, with prices showing no significant reaction to the news.
• Using historical production data, Pessango illustrated the magnitude of Venezuela’s decline, noting that while production peaked in the 1990s at approximately 3.0–3.5 million barrels per day, output fell from about 2.3 million barrels per day in 2016 to roughly 860,000 barrels per day by November 2020, particularly following the imposition of U.S. sanctions.
• Although output has edged higher since its 2020 low, she described the recovery as slow, long, and narrow, emphasising that current production levels remain too low to materially influence global supply, and that Venezuela today represents a far more diminished variable in global oil markets compared with its historical role.
• Pessango noted that even under S&P Global Energy’s high-case scenario, which assumes regulatory reform and sanctions relief, production might reach around 1.3 million barrels per day by 2026 or 2027, but Venezuela would still account for only about 1% of global crude supply, entering an already oversupplied market where execution constraints, rather than geology, remain the most significant obstacle.

(Source: The Trinidad Express)

• The U.S. Federal Reserve held interest rates steady on Wednesday, citing still-elevated inflation alongside solid economic growth, and giving little indication in its latest policy statement of when borrowing costs might fall again. "Economic activity has ‌been expanding at a solid pace," Fed policymakers said in the statement after voting 10-2 to hold the U.S. central bank's benchmark interest rate in the 3.50%-3.75% range following a two-day meeting.
• Both Governor Christopher Waller, a contender to replace Fed Chair Jerome Powell when his term as central bank chief ends in May, and Governor Stephen Miran, currently on leave from his job as an economic adviser at the White House, dissented in favour of a quarter-percentage-point rate cut. The statement from the policy-setting Federal ‌Open Market Committee (FOMC) offered no hint about when another reduction in borrowing costs might come, noting that "the extent and timing of additional adjustments" to the policy rate would depend on incoming data and the economic outlook.
• Meanwhile, inflation "remains somewhat elevated," the central bank said, while the job market has "shown some signs of stabilisation. Fed policymakers ahead of this week's meeting had largely characterised the job market as roughly in balance, with smaller gains matching the slower growth in the numbers of those seeking employment as a result of the Trump ⁠administration's stricter immigration policies. The unemployment rate in December fell to 4.4%.
• The decision to maintain borrowing costs at their current level effectively pauses the Fed's current monetary easing cycle, which begun near ⁠the end of the Biden administration ⁠and continued after a pause of roughly nine months during President Donald Trump's second term in the White House, on hold again after three quarter-percentage-point reductions at the central bank's final three meetings of 2025.
• The rate cut at the December 9-10 meeting left the FOMC unusually divided. Three of its 12 voting members dissented, with one in favour of an even deeper cut and ‍two in favour of no reduction at all.
• Those same divisions have carried into 2026, and recent economic data have done little to change the outlook for those officials most concerned that inflation is not progressing back to the central bank's 2% target, or for those more worried about a rise in the unemployment rate if credit conditions aren't loosened to encourage more spending and investment. It's a debate that could shape the first weeks in office of ‍whoever is named to replace Powell in the top Fed job, a decision that Trump is expected to announce soon. Powell's successor is expected to be in place to run the central bank's meeting in June. Investors currently expect the Fed to keep rates on hold until then

(Source: Reuters)

• The Bank of Japan considered mounting inflationary pressures stemming from a weak yen and labour shortages, among other factors, as key influences for the timing of additional interest rate hikes, according to minutes from a December meeting.
• The discussions reflected the board's readiness to continue raising still-low borrowing costs even after its decision in December to raise the policy rate to a 30-year high of 0.75%. While some members preferred treading cautiously on future rate hikes, others said inflation was becoming more entrenched and persistent as companies pass on wage increases alongside raw material costs, according to the minutes. A weak yen adds to inflationary pressure by pushing up import costs at a time when more businesses were actively raising wages and prices, some members said.
• A weak yen has become a source of concern for policymakers, as it hurts households through rising cost of living, a focal point in Japan's general election on February 8. After sliding near the key 160-per-dollar mark earlier in January, the yen rallied as much as 3% over the last two sessions to around 153 amid speculation of U.S. and Japan rate checks - often seen as a precursor to official intervention. One member said the yen's fall and rising long-term interest rates were partly due to the BOJ's policy rate being too low relative to the rate of inflation, the minutes said.
• With core consumer inflation exceeding the BOJ's 2% target for nearly four years, markets speculate that additional price pressure from a weak yen could lead to a rise in interest rates again in the coming months.
• While most members said the BOJ should not have a pre-set timeline on the pace of rate hikes, one suggested tightening in "intervals of a few months" as its policy rate remained distant from levels deemed neutral to the economy, the minutes showed.
• Another member underlined the importance of assessing a broad range of indicators, including anecdotal data, to determine whether a sustained mechanism of moderate wage and price increases had taken hold.

(Source: Reuters)

• United Oil & Gas Plc has started a key offshore exploration programme in Jamaica, marking an important step forward on its Walton Morant Licence. The survey vessel, R/V Gyre, departed Trinidad on January 19th for Jamaica. After routine inspections, offshore work is planned to begin this week.
• Jamaica has long attracted petroleum interest due to seismic data indicating significant hydrocarbon potential offshore. Previous surveys have detected oil-like substances, but confirmation requires seabed sample analysis to determine whether the material is crude oil or other hydrocarbons. The current survey focuses on the Walton Morant Licence zone, which spans Jamaica’s entire southern coast.
• After the offshore work is completed, recovered samples will be sent to a specialist laboratory in the United States for geochemical analysis. Preliminary results are expected one to two months after the survey ends, with full results anticipated by mid-2026. The goal is to confirm the presence of thermogenic hydrocarbons^[1], helping to reduce exploration risk and guide future drilling decisions.
• In a company press release, Brian Larkin, CEO of United Oil & Gas, said the survey marks a key milestone in the Jamaica exploration programme. “With the R/V Gyre now en route, we are entering an important phase of data acquisition that will significantly improve our understanding of the basin. The results will be critical in de-risking the licence and guiding future strategic decisions as we continue to unlock the potential of over 7.1 billion barrels of unrisked prospective resources in this highly prospective offshore area.”
• Energy Minister Vaz, during a media tour of the vessel at the Port Royal Cruise Terminal on Monday, January 26, 2026, said the initiative is part of the Government’s broader strategy to strengthen energy security while maintaining strong environmental safeguards. “This activity represents an early-stage, non-intrusive exploration effort aimed at improving our technical understanding of Jamaica’s offshore petroleum potential,” Vaz said. “It does not authorise drilling or production. It is a data-gathering exercise that supports informed, responsible, evidence-based decision-making.”. For Vaz, the exercise marks a cautious step forward rather than a dramatic breakthrough.

(Sources: United Oil and Gas Press Release and Caribbean News Weekly)

^[1] Thermogenic hydrocarbons are oil and natural gas compounds (methane, ethane, propane, butane) formed by the thermal cracking of organic matter (kerogen) in sedimentary rocks at high temperatures and pressures deep underground.

• The Port of Kingston is poised to benefit from another wave of major investment, building on more than US$500Mn (J$80Mn) spent over the past decade to modernise and expand port infrastructure.
• Kingston Wharves Limited (KWL), one of Jamaica’s two port operators, has received a US$25Mn construction quote for a multi-level car park designed specifically to facilitate the transhipment of motor vehicles from Jamaica to global markets. The proposed investment covers only the physical storage infrastructure for vehicles in transit.
• KWL Chief Executive Officer Mark Williams made the disclosure while speaking at the 21st Jamaica Stock Exchange (JSE) Regional Investments and Capital Markets Conference 2026, held from January 20–22. He underscored that Jamaica is rapidly emerging as a serious competitor in the global motor vehicle transshipment market.
• This comes after KWL strategically invested over US$60Mn in the last four years, in both physical and digital infrastructure. As part of the US$60Mn plan, the company completed the first phase of its warehouse complex on Ashenheim Road in Kingston as well as its Berth 7 redevelopment project, which expanded the port’s capacity by 25% to handle one million Twenty-foot Equivalent Unit in container operations annually. A port handling one million TEUs annually is considered a major hub, indicating significant, high-volume trade, vessel traffic, and logistical activity. 
• That said, sustained growth will depend on accelerated development of physical infrastructure at the Port of Kingston, including expanded berthing capacity and additional backlands. To this extent, KWL has approached the government to acquire portions of Tinson Pen for its expansion, highlighting that this move is consistent with the government’s proposal to have Jamaica become a significant node in global logistics.
• For this to happen, Williams lamented that, “what’s required is substantial investment in physical infrastructure, in equipment and more importantly in technology. You have to facilitate the movement of those cars when you have the largest car ship in the world visiting Jamaica, and that car vessel has 9,402 cars; we need space to put them, it requires huge capital investment…It therefore means you need land space, you need to expand the port boundaries.”
• KWL earnings grew 18.4% to $2.57Bn in the nine months to September 2025 driven by higher revenues (19.9%), supported by KWL’s Terminal Operations and Logistics Services Divisions. The company is expected to see some tailwinds from the post Hurricane Melissa recovery efforts, though the backlog at the ports could present upside risk to costs.
• KWL’s stock price has decreased by 0.3% year-to-date, closing at $34.33 as at Tuesday, January 27, 2026. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 15.97x, which is higher than the Main Market Energy, Industrials and Materials Sector average of 14.38x.

(Sources: Our Today, NCBCM Research)

• Exports from the Dominican Republic to Commonwealth countries increased by 44.0% in 2025, rising from US$1.398Bn in 2024 to US$2.482Bn, according to the 2025 Annual Report of the Commonwealth Countries Roundtable. The growth highlights the expanding role of Commonwealth nations as key trade partners for Dominican exports, foreign investment, and tourism.
• India became the second-largest export market for the Dominican Republic, with shipments totaling US$1.515Bn, surpassed only by the United States. Other major Commonwealth destinations included Canada, Jamaica, the United Kingdom, Guyana, Trinidad, Singapore, Barbados, Australia, and Malaysia, reflecting a growing diversification of Dominican foreign trade.
• The report emphasises that the 56 Commonwealth countries represent 33.0% of the global population and import approximately US$224.0Bn annually in food products, presenting significant opportunities for Dominican producers and exporters. It also highlights strong Commonwealth investment in the Dominican Republic, particularly in sectors such as banking, mining, manufacturing, energy, free trade zones, agriculture, and tourism.
• Looking ahead, 2026 is expected to be a strong year for trade and investment, supported by the country’s international positioning and the upcoming Commonwealth Heads of Government Meeting in the Caribbean.

(Source: Dominican Today)

• The Irfaan Ali administration presented a record G$1.558T National Budget for 2026, representing a 12.7% year-on-year increase, with no new taxes, aimed at providing direct financial support to citizens, expanding social services, and supporting economic activity.
• The budget includes a G$100,000 National Cash Grant for every Guyanese aged 18 and over, expected to cost approximately G$60.0Bn, alongside expanded support for school-aged children through a combined G$85,000 in grants per child, impacting roughly 206,000 students and amounting to G$17.5Bn in transfers.
• Education measures also include continued government funding for up to eight CSEC and CAPE subjects per child, benefiting nearly 14,000 students, and the introduction of a G$20,000 annual transportation grant per student.
• Old Age Pensions will rise from G$41,000 to G$46,000 per month, benefiting around 95,000 pensioners, while Public Assistance payments will increase from G$22,000 to G$25,000 per month, supported by additional allocations for transportation assistance and social care infrastructure.
• Worker stipends under programmes including Pathway Workers, Community Enhancement Workers, Community Service Officers, and Community Policing Groups will increase from G$40,000 to G$50,000 per month, amounting to an estimated G$14.0Bn in additional annual spending.
• Tax and cost-of-living measures include raising the income tax threshold to G$140,000 per month, eliminating net property taxes on individuals, removing corporate taxes on agriculture and agro-processing, expanding VAT and duty exemptions across selected goods and vehicles, and setting aside G$9.0Bn to offset rising living costs.

(Source: Caribbean National Weekly)