• Food and Financial Services conglomerate, GraceKennedy Group Limited (GK), reported net profits of $2.12Bn for the three-month period ended June 30, 2025 (Q2 2025), a 12.2% decline compared to $2.42Bn in Q2 2024.
• Revenues for the quarter were up 6.6% to $44.80Bn aided by an overall uptick in revenue generated from its products and services as well as interest revenue.
• However, direct and operating expenditure growth outpaced revenues with an 8.6% increase year-over-year, closing the period at J$42.92Bn from J$39.52Bn. This contributed to profit before tax for the quarter to be J$2.95Bn, down 11.0% from J$3.31Bn in Q2 2024, as elevated group-wide costs offset revenue gains.
• With only a modest 3.0% expansion in earnings in Q1, the 12.2% earnings contraction in Q2 resulted in a falloff in GK’s six-month (H1 2025) earnings. Operating profit fell by 4.9% to J$7.07Bn for the six-month period due to a 28.6% decline in GK’s Money Services division. The division was adversely impacted by lower transaction volumes and remittance flows in Guyana and Trinidad & Tobago. However, gains in the Jamaican market helped soften the overall impact.
• GK’s stock price declined by 8.9% year-to-date, closing at $71.95 as at Tuesday. At this price, the stock is trading at a P/E ratio of 8.7x, below the Main Conglomerate Sector average of 11.4x.

(Sources: JSE Stock Exchange & NCBCM Research)

• Prime Minister, Dr. the Most Hon. Andrew Holness, has commended Best Dressed Chicken on the investment in the installation of a Liquified Natural Gas (LNG) Cogeneration Plant, which will boost efficiency in the company’s operations.
• Holness noted that the poultry producer, which is a division of the Jamaica Broilers Group, has now secured for itself greater energy efficiency. “It means that they are far more insulated from the volatility of international shocks in the energy market, which would be chiefly responsible for any unpredictable rise in the price of chicken,” he said. He further pointed to the cost savings from converting LNG into energy.
• “The company saves quite a bit relative to what they would pay JPS (Jamaica Public Service) or what their original costs would be using heavy fuel oils. It also gives them the opportunity to use the same energy to generate electricity and to generate steam,” Dr. Holness pointed out. Group President and Chief Executive Officer, Christopher Levy, shared that it is an important investment, aimed at making the company more competitive and its products more affordable.
• Levy added that the new LNG plant will offer a multi-tiered return on investment for the company. “The chicken plant uses a lot of steam. That steam is collected from the exhaust heat of the energy and that exhaust heat goes through what is called a heat recovery boiler and produces steam. So, we don’t burn any other energy at this plant. We burn energy once and right now it’s gas and that produces all the steam that we need, hot water that we need, electricity that we need,” he explained.
• The increased energy efficiency and self-generation capabilities from the LNG cogeneration plant are expected to further lower the company’s utility expenses, reducing production costs and improving operating margins—developments that could positively impact future earnings and enhance price competitiveness in the local and export markets.

(Sources: JIS & NCBCM Research)

• Mexico’s government announced during a press conference on Tuesday, August 5, 2025, that it aims to cease funding Pemex by 2027, when the highly indebted state energy company should become financially self-sufficient, supported by a series of measures to pay down debt and stabilise production.
• President Claudia Sheinbaum presented a ten-year plan that outlined steps to achieve the government’s goals of making Pemex financially self-sufficient. Officials reiterated its ambition to pay down debt, both maturing bond debt and what the company owes to providers. To achieve all this, a new government-backed investment vehicle will seek to raise up to 250 billion Mexican pesos ($13 billion) for Pemex projects in 2025 alone to help lift declining production. This follows a $12 billion debt offering to ease Pemex's short-term financial pressures and support debt refinancing.
• According to President Sheinbaum, over 20 mixed contracts could help lift declining production by as much as 450,000 barrels per day (bpd). At the same time, it would refine more at home and therefore reduce crude oil exports to 393,100 bpd in 2035, from 487,900 bpd in 2026. The target for local crude oil processing, including at the new Olmeca refinery in the port of Dos Bocas, is 1.3 million barrels per day. This would help wean the country off gasoline and diesel imports.
• Pemex CEO Victor Rodriguez also outlined several operational initiatives to support the plan, including leading the development of the Zama and Trion fields and reactivating other fields with potential. In addition, Pemex intends to build three new pipelines.
• Pemex, the world's most indebted energy company, reported last week a financial debt of around $99 billion and a debt to providers of around $23 billion, which is down from earlier years but still has investors worried. This year $5.1 billion of debt is due for repayment, followed by $18.7 billion next year and $7.7 billion the year after. Finance Minister Edgar Amador said that through a capitalization and financing strategy currently underway, Pemex's financial debt should close this year at $88.8 billion and $77.3 billion by 2030.

(Source: Reuters)

• The Central Bank of the Dominican Republic (BCRD) reported that foreign direct investment (FDI) reached US$2.89Bn in the first half of 2025, marking a 15.3% increase compared to the same period in 2024. This growth reinforces the country’s position as the leading destination for foreign investment in the region for the third consecutive year, according to UNCTAD.
• The bank attributes this performance to strong investor confidence and projects that total FDI for the year will surpass US$4.7Bn. Nearly half of the inflows were concentrated in the tourism and energy sectors.
• Tourism also saw positive results, generating approximately US$5.8 billion in revenue from January to June—up 1.8% from the same period in 2024—driven by the arrival of 6.1 million visitors by air and sea.
• Combined foreign exchange inflows from FDI, remittances, tourism, exports, and services totaled around US$23.9 billion during the first half of 2025, helping maintain exchange rate stability.

(Source: Dominican Today)

• The European Union (EU) will suspend its two packages of countermeasures to U.S. tariffs for six months following a deal with U.S. President Donald Trump.
• The EU-U.S. agreement leaves many questions open, including tariff rates on spirits, and Trump's executive order last week setting tariffs on most EU goods at 15% did not include carve-outs such as for cars and car parts. EU officials have said they expect more executive orders to follow soon.
• "The EU continues to work with the U.S. to finalise a Joint Statement, as agreed on 27 July," the spokesperson said in a statement. "With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the EU’s countermeasures against the US, which were due to enter into force on 7 August."
• The retaliatory tariffs are in two parts: one in response to U.S. steel and aluminium duties, and the other to Trump's baseline and car tariffs.

(Source: Reuters)

• Britain's main minimum wage rate will probably need to rise 4.1% next year to 12.71 pounds ($16.88) an hour to keep up with the government's goal for it to match two-thirds of median earnings, according to the body that effectively sets the rate.
• Britain's minimum wage has risen steeply in recent years - increasing by 6.7% in April to 12.21 pounds an hour - and last year it was the second-highest in Europe after France in relative terms, OECD data showed.
• Rising wage costs across the whole economy are seen by the Bank of England as one reason why British inflation has been higher than elsewhere in Europe, though it expects pressure to ease as the job market is slowing.
• Britain's minimum wage is set by the government each year based on a recommendation from the Low Pay Commission, a government-appointed body that includes representatives from employers, trade unions, and academia. Around 6.5% of British workers receive the minimum wage, and a significant number are paid only slightly more.
• A trade body for Britain's hospitality industry said rising employment costs had already led to reduced hours for staff. "Any significant wage hike may cost jobs. We urge the Low Pay Commission to recognise these cost pressures and recommend a more gradual and sustainable increase this year," UK Hospitality chair Kate Nicholls said.
• Earlier this week Britain's government gave guidelines to the commission on the factors it should consider, which were little changed from 2024. They include keeping minimum pay no lower than two-thirds of the median, while taking into account economic competitiveness and employment. In May, the commission predicted that the minimum wage for employees aged 21 and over, which the government calls the National Living Wage, would rise by 3.6% next year

(Source: Reuters)

• Guardian Holdings Limited (GHL) delivered a strong second quarter performance, with Q2 2025 earnings rising by 64.1% year on year to TTD$274.4Mn. This was primarily driven by higher net investment income and continued growth in its English-speaking, Dutch Caribbean and Netherlands insurance markets.
• Net investment income climbed 38.6% year-over-year to TTD$558.2Mn, largely due to proactive portfolio rebalancing, realised gains on securities, and higher contributions from financial assets held at amortised cost and fair value. This provided a significant boost to the Group’s Q2 earnings.
• Net insurance results rose modestly to TTD$244.5Mn (11.2%), up from TTD$220.0Mn in Q2 2024, reflecting. The improvement was supported by a sharp 40.8% decline in net expenses from reinsurance contracts held, which helped offset the 20.8% rise in insurance service expenses stemming from elevated claims activity—particularly in the Property & Casualty (P&C) segment. This balance underscores the Group’s ability to preserve underwriting profitability amidst a more challenging claims environment.
• Net insurance finance expenses increased by 31.5% to TTD$268.85Mn in Q2 2025, up from TTD$204.53Mn in Q2 2024, reflecting the impact of higher discounting and accretion costs on insurance liabilities amid prevailing market interest rate conditions. The Life, Health & Pensions (LHP) segment was the primary driver of the increase, as policyholder investment-linked funds experienced strong returns, which resulted in a TTD$134.0Mn rise in client-attributed investment income. While this benefited clients, it correspondingly increased the Group’s insurance liabilities, thereby raising finance expenses.
• Against this background, the Group’s net profit for the six months ended June 2025 (H1 2025) surged to TTD$1.04Bn (+160.3%), led by the one-off gain of TTD$649.0Mn from the disposal of Thoma Exploitatie B.V. in Q1 and supported by the robust growth in earnings in Q2.
• That said, excluding profit from discontinued operations after tax, the Group recorded unaudited profit attributable to equity shareholders on continuing operations of TTD$394.93Mn, 1.0% above the TTD$392.89Mn in H1 2024. This performance reflects a falloff in Q1 earnings from continuing operations that was offset by a rebound in core earnings in Q2.
• As at the close of trading on Monday, GHL shares closed at J$308.120, reflecting a 0.50% year-to-date increase. At this price, the shares trade at a P/E of 2.09x, which is below the Main Market Financial Sector Average of 13.63x.

(Sources: Guardian Holdings Limited Financials & NCBCM Research)

• Jamaica’s agricultural sector recorded growth of 13.7% between April and June of 2025. This is up from 3.1 per cent growth for January to March, when the island, for the first time, recorded 221,000 tonnes of production in a quarter.
• “I’m pleased to announce that in our April to June quarter, our Jamaican farmers have produced, from our preliminary figures, 232,000 tonnes of production,” Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green disclosed. He noted that the growth is despite the setbacks caused by Hurricane Beryl.
• Minister Green noted that one of the main areas in which support is being provided to farmers is through major irrigation projects. “As we know, the climate has changed. We’re going through these times of extended drought; water is non-negotiable and that is why this Government is spending…to ensure that our farmers have access to water,” he pointed out.
• He highlighted the recently launched Parnassus Irrigation Scheme in Clarendon, which comprises 700 acres of newly irrigated land. “I’m pleased to advise that every single acre in Parnassus is now leased to agricultural entrepreneurs, who have started the planting and who are helping to drive our production,” the Minister said.
• Pipe work has been completed for the Amity Hall irrigation project in St. Catherine, which will bring another 800 acres under irrigation. “We expect to launch Amity Hall in the last quarter of this year. Additionally, we’ve done all the pipe works…we’ve done the road works in Essex Valley, St. Elizabeth, which will bring about 3,000 acres of agricultural land under irrigation support,” the Minister said.
• He pointed out that Essex Valley will also feature 24,000 square feet of storage for produce and areas for agro processing. “We would have just broken ground this week for the rehabilitation of the Coleyville Cold Storage facility [in Manchester], with eight storage bins, and each can hold about 250,000 pounds of agricultural produce,” Minister Green said.

(Source: JIS

• The construction of the multi-million-dollar international airport at Wesley, northeast of the island, is progressing satisfactorily and is “ahead of schedule” according to the Dominican government. Finance Minister Dr. Irving McIntyre, delivering the EC$1.3 billion budget, told legislators that since the mobilisation and commencement of construction of the international airport, there has been substantial progress in transforming “this long-awaited national priority into a reality.”
• According to McIntyre, the construction of the airport, which is now over 40% complete, “will serve as a catalyst for tourism, trade and investment, reshaping Dominica’s economic landscape and global connectivity.” Further, work on the cargo facility, air traffic control tower and rescue and firefighting services building will soon commence.
• The construction of the Cabrits Marina, which is also progressing on schedule, remains a key pillar in the government’s strategic plan to position Dominica as a premier destination for marine tourism. Dr. Irving McIntyre said that the first phase of the project is scheduled for completion by June 2026 and is being executed with precision and adherence to international engineering standards. The second phase will deliver the core operational features of the marina and is expected to be completed by November 2026.
• The Dominica government has identified a reputable and experienced marina operator who has received global recognition under The Yacht Harbour Association’s (TYHA) Gold Anchor Accreditation Scheme, a standard that reflects a commitment to excellence in marina development and customer service. “The benefits of this partnership extend well beyond the physical infrastructure. It brings with it the training and employment of a local workforce, ensuring that Dominicans are equipped to take full advantage of the opportunities within the marine tourism sector.”
• The project is also expected to foster strong engagement with both community and private sector stakeholders, creating a shared sense of ownership and participation in the success of the marina. Through the operator’s global reputation for excellence, the Cabrits Marina will offer best-in-class services and standards, attracting a loyal following of captains, crew and boaters who already associate the brand with quality and professionalism.

(Source: Caribbean Today)

• ExxonMobil’s Chairman and Chief Executive Officer Darren Woods on Friday, August 1, 2025, described Guyana as one of the oil giant’s most strategically important assets and predicted that the country’s Stabroek Block will go down as one of the most successful deepwater developments in history.
• During the company’s second quarter earnings call, Woods highlighted that Exxon recently celebrated the 10th anniversary of its first oil discovery in Guyana and oil production commenced in December 2019. Exxon currently has three major developments online in the Stabroek Block, producing about 650,000 barrels of oil per day, and a fourth FPSO – One Guyana – is expected to increase daily production to 900,000 barrels of oil per day.
• Woods noted that by 2030, the company anticipates having a total production capacity of 1.7 million barrels of oil equivalent per day across eight sanctioned projects in the Stabroek Block. “The success of these projects has established Guyana as the world’s fastest growing economy, it’s also one of the reasons I believe the Guyana development will prove to be one of the most successful deepwater developments of all time,” he said.
• Stabroek Block, which spans 6.6 million acres is estimated to hold 11.6 billion barrels of oil. Exxon holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. (now Chevron) holds 30% interest, and CNOOC Petroleum Guyana Limited holds 25% interest. The agreement governing the Stabroek Block extends favourable terms to the oil companies. According to the agreement, Stabroek Block partners can recover 75% of oil produced to cover investment costs. The remaining 25% is considered profit and is split equally between Guyana and the consortium, giving each 12.5%.

(Source: Kaieteur News)