By Durrant Pate/Contributor

Toll road operator TransJamaican Highway has seen a 24 per cent rise in net profits in the third-quarter on the back of increased revenues of US$20.8 million.

Revenues went up by 9 per cent or US$1.6 million from the US$19.2 million for the same quarter in 2023. Revenue for the nine-month period ended September 30 amounted to US$60.4 million, which is US$5 million more than the US$55.4 million earned in 2023, which is a similar  9 per cent increase. 

This was due to greater levels of traffic over the previous year, in addition to movements in the toll tariff that is reviewed annually. Net profit for the September quarter closed on US$8 million, which is a 24 per cent increase over the US$6.5 million posted for the same quarter in 2023. 

This was after recognising corporate and deferred tax charges of US$2.8 million. 

Growth in profitability

Net profit for the combined three quarters closed on US$22 million, a 26 per cent increase or a US$4.5 million increase over the US$17.5 million posted for the comparative nine-month period in 2023. This was after recognising corporate and deferred tax charges of US$7.3 million. 

Corporate & Deferred tax charges of US$5.8 million were recognised for the comparative period in 2023.

Pre-tax profit amounted to US$10.9 million, reflecting an increase of US$2.3 million, compared to the US$8.6 million booked in the previous year’s quarter. 

This increase in profitability mainly resulted from higher revenues for the quarter and was partially offset by the cost factors mentioned above. Pre-tax profit for the nine-month period was US$29.3 million and reflects an increase of US$6.1 million, compared to profit before tax of US$23.2 million for the same period in 2023. 

Operating expenses contained

Corporate & Deferred tax charges of US$2.1 million were recognised for the comparative quarter in 2023.

For the third quarter, TJH incurred operating expenses of US$5.3 million, a slight decrease US$0.3 million, compared to the US$5.6 million incurred for the same quarter in 2023. 

For the combined three quarters operating expenses closed on US$16.7 million, down from theUS$16.6 incurred last year. Administrative expenses, which comprise primarily of staff costs, depreciation of plant and equipment and other routine office expenses, were slightly up for the September quarter at US$2.2 million.

This is an increase of US$0.2 million, compared to US$2 million booked for the same period last year. This was primarily due to salary changes resulting from the completed restructuring exercise and annual inflationary increases.  

For the nine-month period, administrative expenses totalled US$7 million, up US$1 million over the US$6 million booked in 2023. 

Balance sheet highlights

As of September 30, 2024, total assets stood at US$297 million, which is US$7 million more than total assets of US$290 million as at December 31, 2023. Primary movements over the period were attributed to an increase in trade receivables and cash and bank. 

This was also offset by further amortisation of the intangible asset and usage of the Deferred Tax Asset. As at September 30, share capital remained at US$27 million. 

Retained earnings, however, increased to US$29 million, up from US$22 million as at December 31, 2023. This was primarily attributable to net income generated over the last three quarters.

Total liabilities stood at US$241 million, a comparative amount to total liabilities of US$241million as of December 31, 2023. This was primarily impacted by the principal repayment made on secured notes and was offset by a second declaration of dividends for this period.