- Investment company Washington H. Soul Pattinson (SOL) says its net profit after tax for the previous half-year is likely to be around $50 million
- This is markedly worse than the $186 million in profit the company reported in the previous corresponding period
- The lower profits were caused by declining performances across the company’s investment portfolio
- In particular, the company’s mining assets have been severely affected by a steep drop in zinc, coal and copper spot prices
- Shares in Washington H. Soul Pattinson and Company (SOL) is up 0.48 per cent today, with shares trading for $18.87 apiece
Washington H. Soul Pattinson and Company (SOL) has reported its net profit after tax for the previous half-year is likely to between $45 and $55 million.
Excluding the impact of one-off, or irregular expenses, the company made a profit of around $125 million attributable to its shareholders. However, both these figures are markedly lower than the previous corresponding period.
This time last year, the company reported $186 million in net profit after tax.
The considerable hit to profits is related to a number of the company’s investments.
WHSP’s portfolio includes assets in pharmacy, retail, building materials, natural resources, equity investments, agriculture, and telecommunications.
New Hope Coal have yet to fully report their last quarter. However. WHSP expects the results be around 50 per cent lower than expected. New Hope have been severely impacted by a 40 per cent drop in coal prices over the last year.
Falling zinc and copper prices have also impacted Round Oak Minerals, another of WHSP’s investments.
WHSP stated that its earnings and net profit are not currently key indicators of the company’s performance. Instead, WHSP points to its capital value, which remains in line with 2019. Furthermore, the company remains confident it can maintain the current dividend payment, despite the lower figures.
The recent economic downturn caused by the COVID-19 outbreak has hit the company particularly hard. Since late February, when the virus’s economic impacts began to show, the company’s share price has dropped more than 18 per cent.
Shares in Washington H. Soul Pattinson and Company (SOL) is up 0.48 per cent today, with shares trading for $18.87 apiece at 12:37 pm AEDT.