TJH Records Strong Financial Performance in 2023

  • TransJamaica Limited recorded a net profit of US$23.86Mn for the twelve months ended December 31, 2023. This represents a 434.2% YoY turnaround in profitability, primarily bolstered by strong quarterly performances and significant cost savings throughout the year.
  • For the Twelve months ending December 31, 2023, revenue was US$75.20Mn, reflecting an increase of 15.7% compared to US$65.06Mn for the same period in 2022. The significant increase was due to greater traffic levels over the previous year and movements in the toll tariff, which is reviewed annually.
  • Operating expenses for the twelve months improved to US$22.44Mn or 43.8% from US$39.91Mn in 2022. This was primarily due to cost savings that continue to accrue to TJH from the acquisition of the subsidiary, Jamaican Infrastructure Operator (JIO), which allowed for the modification of the fees, thus reducing its cost to operate. This was, however, partially offset by bank and security charges incurred, higher maintenance costs, including spares and equipment purchased to improve the services, cost for renovation works that are currently being done at the Portmore Toll Plaza, and higher Insurance costs associated with the renewal of its coverage for the motorway.
  • The Group’s administrative expenses primarily comprised of staff costs, plant and equipment depreciation, and other routine office expenses, came in at US$8.36Mn for the full year (FY). This represents a rise of US$6.61Mn relative to US$1.75Mn for FY 2022, influenced by subsidiary’s staff and related costs and increased consultancy fees.
  • The acquisition of JIO has resulted in a one-time settlement loss of US$13.88Mn; however, TransJamaica stands to gain from future cost savings as this transaction has significantly reduced its Operating Expenses by more than 40% for the twelve months and increased its profitability which is expected to continue in subsequent years. Furthermore, increased traffic flows have bolstered and will continue strengthening the company’s topline.
  • In addition, TJH has the first right of refusal to maintain and operate the May Pen to Williamsfield leg of Highway 2000 and is currently in negotiations with the government regarding the concession. If the company is successful in securing the concession, we anticipate that it will provide an additional boost to TJH’s revenues and profitability, as the road is a major thoroughfare along the south coast and will significantly reduce travel time to Kingston from Mandeville for motorists.
  • TJH’s stock price has increased by 17.7% since the start of the calendar year. The stock closed Tuesday’s trading session at $3.19 and currently trades at a P/E of 10.29x below the Main Market Energy, Industrial, and Materials Sector Average of 12.42x.

(Sources: JSE and NCBCM Research)