KWL Operations Uninterrupted Despite Hurricane Melissa

  • Kingston Wharves Limited (KWL) reported a 19.9% increase in its shareholder profit to $2.50Bn for the 9 months ended September 2025 (9M 2025). This improvement was anchored by robust expansion in revenues.
  • 9M revenue growth mirrored that of earnings, increasing by 19.9% to $2.50Bn, driven primarily by improvements from both divisions, Terminal and Logistics Services.
  • Terminal Operations Division, its larger segment, contributed $7.30Bn in revenues (+30.5%) and $2.30Bn in Operating profit (+60.2%). This performance was buoyed by strong growth in motor units handled, increased container activity and higher volumes in bulk and breakbulk operations.
  • Meanwhile, the Logistics Services Division saw more moderate growth, up 7.9% to $3.30Bn, while operating profit declined by 29.4% to $760.59Mn. The decline was due to higher operating expenses due to ongoing regulatory reforms, business-strengthening initiatives, and revised cost allocations across operating segments
  • Despite the drag from Logistics Services, consolidated operating profit climbed 13.6% to J$3.03Bn. A sharp increase in finance costs of 72.1% to 264.41Mn prevented a faster pace of expansion in operating profit. The rise in KWL’s finance costs was partly due to higher interest expenses, likely stemming from a 102.3% increase in short-term debt year on year.
  • Despite the extensive damage sustained across the country, KWL successfully protected its assets and maintained uninterrupted operations through proactive preparedness. As Jamaica continues its recovery from Hurricane Melissa, KWL’s operations will be integral in facilitating the movement of relief supplies and supporting the wider national restoration efforts. This strategic positioning presents a significant growth opportunity for the Company and could deliver sustained value for shareholders.
  • KWL’s stock has declined 11.9% year-to-date (to J$29.00 at the end of trading on Monday) and has remained largely flat post-Hurricane Melissa, suggesting that investors have not yet priced in the potential upside in the company’s performance as imports rise to support the recovery efforts. , trading at a price-to-earnings (P/E) ratio of 13.5x. This is lower than the Main Market Energy, Industrials and Materials Sector’s average of 14.9x.

(Sources: JSE & NCBCM Research)