The Jamaica Public Service Company (JPS) has written off US$22.3 million — about J$3.5 billion — in assets damaged by Hurricane Melissa last October.
The electricity utility said in its audited financials, released on Wednesday, that the charge reflects damage to its property, plant and equipment, primarily within its transmission and distribution network.
“A derecognition or retirement charge of $22.3 million, net, relates to the write-off of the carrying amount of assets catastrophically damaged by the hurricane,” the company stated adding in a later note that there was no retirement charge in 2024 despite Hurricane Beryl.
Hurricane Melissa also strained the company’s receivables position, signalling that customers found it harder to service their bills, with accounts receivable climbing to US$201.7 million from US$183.7 million in 2024.
The financial statements also revealed that JPS has classified a small parcel of land, valued at approximately US$48,000, as an asset held for sale following a government acquisition notice. The company received notification from the Government of Jamaica, through its subsidiary National Road Operating and Construction Company Limited, regarding the acquisition of the land for the construction of Highway 2000: Montego Bay Perimeter Road Project in St James.
Operating revenue for 2025 stood at US$1.08 billion, slightly down from US$1.09 billion in 2024, as electricity sales softened. Profit for the year fell sharply to US$28.9 million from US$61.9 million the previous year, weighed down by one-off costs and the hurricane-related write-off.
“The passage of Hurricane Melissa … resulted in widespread economic disruption across Jamaica and has increased the level of uncertainty within the operating environment,” stated JPS in the financial notes accompanying the audited results. “Consequently the group may be exposed to heightened credit and liquidity risks as customers, suppliers and other counterparties adjust to the post-storm conditions.”
Despite the headwinds, the company’s liquidity improved. Cash and cash equivalents jumped to US$202.9 million from US$47.7 million at end of 2024, supported by US$200 million in new long-term borrowings — including a US$150 million loan from the Ministry of Finance specifically earmarked for Hurricane Melissa restoration activities.
JPS and the government are set to begin talks regarding the renewal of its licence as utility provider which expires in July 2027.
business@gleanerjm.com
