JPS assets lose $1.8b of value after revaluation
Monopoly electricity distributor Jamaica Public Service Company (JPS) has slashed US$21.3 million (J$1.85b) from the value of its land assets.
JPS' first land revaluation in four years decreased the value of its landholdings and buildings by 28.8 per cent, from US$73.9 million in 2010 to US$52.6 million.
"Please note, as a part of ongoing operations and prudent business practice, JPS has its lands valued every three years. Prior to 2011, the last valuation was done in 2008," said Winsome Callum, head of corporate communications at JPS, in correspondence with The Gleaner.
"The revaluation impacts fixed assets and capital reserves only".
The revaluations have had no impact on taxation, cash flow, or the planned 360MW liquefied natural gas plant, Callum said.
Without the revaluation, JPS would have made a profit of US$34.35 million. With the charge, profits fall to US$13 million at yearend December 2011.
The utility made net profit of US$39.9 million in 2010.