Somers takes $47m loss as market downturn takes toll
Somers Limited has reported a net loss of $46.9 million for the second quarter of its fiscal year as the company was buffeted by the severe downturn in global investment markets.
The Bermudian-based financial services investment holding company said the loss compared with net income of $13 million in the prior-year quarter.
The resultant loss per share in the second quarter was $2.20 (2021: earnings per share of $0.60).
In a filing with the Bermuda Stock Exchange, the company said net asset value per share at the end of March was $24.39 and shareholders’ equity was $554.5 million.
During the quarter, Somers’ investment portfolio reduced to $583.8 million (December 31, 2021: $640.8 million) owing to current stock market volatility.
Net foreign exchange gains were $11.1 million for the quarter (2021: loss of $3.7 million).
Commenting on the financial results, chairman Peter Durhager said: “Somers’ financial results in the current financial year are being materially impacted by increased volatility brought on by high levels of inflation, rising interest rates, continued supply-chain disruption and the conflict in Ukraine.
“Global central banks are focused on reducing inflation through increasing interest rates which is tightening financial conditions and stock markets are adjusting to the new paradigm.
“This has had an impact on valuations and is likely to continue in the short to medium term.
“However, as long-term investors, Somers remains optimistic that our investments are well placed to withstand this period and continue to produce strong results.
“As such we are pleased to be able to maintain the interim dividend at $0.24 per share.”