JPS makes nearly $3 billion profit
The Jamaica Public Service Company made US$25.5 million in profits in 2014, Kelly Tomblin, the utility company's president and chief executive officer (CEO), has announced.
"JPS has got its legs back again," the CEO said at a media briefing held at the company's New Kingston offices yesterday.
She said the US$25.5 million, or nearly J$2.9 billion, represents a return on equity of six per cent. The JPS is allowed a return on equity of 16 per cent, or some US$68 million, under its licence.
Tomblin said the profits made in 2014 represent 2.2 per cent of revenue, adding that fuel and IPP costs represent 75 per cent of revenues.
"I hope we all recognise that economies are built off thriving businesses, and usually, the utility is an indicator of how thriving that economy is. In other markers, the economy is the last to go. It is great today that one of the most invested-in companies in Jamaica is turning the corner. I am hopeful in its economic performance," Tomblin said.
She added: "While we have not achieved what would be acceptable, we think we are turning the corner. It is very important that we get back to paying dividends, which we have not been able to do for three years."
HEAVIEST BALANCE SHEET
Dan Theoc, chief financial officer, noted that the JPS has the heaviest balance sheet in the country as a private entity.
"I hope we get out of the mode where people think that profit is a dirty word. Profit is good for the business. Profit is good for all stakeholders, which include shareholders, the debt financers, and the customers," Theoc said.
He noted that the JPS spends a minimum of US$60 million yearly to keep the business going.
"When you look at the profits, it is always important to think of it in terms of the asset base we are dealing with, in terms of the sales, and in terms of the capital investment required to keep the lights on," Theoc said.