JMMB Group suffers $12.6 billion impairment

 

JMMB Group CEO Keith Duncan says the company suffered a major impairment in the last financial year.

 

Mr. Duncan says the financial group had a J$12.6 billion impairment which came from the group's investment in an energy project. 

 

"This would be in the main attributed to a very early start of greenfield transaction in the energy sector which was rated investment grade by CariCRIS and a global asset and as a result got wide sub-regional support from the financial sector. This investment, in spite of challenges, was able to produce but ran into supply contract difficulties and has not been able to continue operations and serve its debt obligations," he pointed out.

 

Mr. Duncan revealed that the management of the energy company is working along with note holders to find ways to recover some or make full recovery of the impairment.

 

He added that JMMB has also taken steps to reduce the possibility of this happening again.

 

"This is a one-off impairment - and I stress it's a one-off impairment - and this will not be repeated as JMMB is revising its investment policy statement to establish limits in relationship capital that will ensure that JMMB will not experience losses of this magnitude from an early start of greenfield investment going forward," he maintained. 

 

Meanwhile, the JMMB Group CEO has disclosed that the company made J$11.8 billion in profit for the financial year ended March 2024.

 

Mr. Duncan was speaking at the company's 'Year-End Investor Briefing' on Thursday.