Montego Freeport Limited (MFL), a state-owned company, has posted six-month profit of $4 million to September 30 despite a $14 million operating loss, earning shareholders a less than one cent return.

A near $3 million was made in the second quarter, for a 0.5 cent earnings per share, according to its latest filing to the Jamaica Stock Exchange.

MFL is substantially owned by the Urban Development Corporation (UDC) - 287 million shares - and National Hotels and Property Limited (174 million shares), which is a UDC subsidiary.

The third largest shareholder is Dr. Irvin Hoo-Fatt/Veronica Fatt with 4.7 million shares.

Profit recovery

The Montego Bay-based company's profit recovery was helped by $15.4 million of finance income and $2.5 million gained from fixed-asset disposal.

The gains from those two items were sufficient to pull the company into black despite increased operating and administrative expenses which, combined, topped $14 million.

In the comparative period to September 2005, the company was $12.55 million in the red, pulled down by a $14.6 million loss on disposal of investment properties.

Loss associated with investment properties in 2005 was due to "cost associated with the sale of the properties - i.e. transfer tax, stamp duty, registration, legal fees, etc. - and not as a result of property being sold below market value," said the company in the notes to the financials.

The company's balance sheet grew by $66 million to $1.83 billion in a year to September 30, but was virtually unchanged from the March quarter.

The stock traded down 10 cents Monday to $2.20, against a 52-week high of $2.50.

business@gleanerjm.com