Feb 2015 Financial News

NEL reports better performance from TSTT

Feb 16, 2015

National Enterprises Limited (NEL) has already evaluated ownership structure options for TSTT, so when the acquisition of Columbus International by Cable and Wireless (CWC) is finalised a structure can be put in place. 

In the statement attached to NEL’s consolidated financial statements for the nine months ended December 31, 2014, chairman Kenny Lue Chee Lip said: “We have evaluated the various options for the ownership structure of TSTT, if the merger were to proceed and in due course will work with the other shareholder on the way forward to preserve our investment in TSTT. We will keep shareholders informed of this decision.”

In the meantime, he assured that TSTT’s profitability as at December 31, 2014 was better than for the previous financial year. According to Lue Chee Lip, the profitability of Tringen, another company in NEL investment portfolio, was “marginally better” than for the previous nine-month period in 2013. “In the last calendar quarter of 2014, Tringen undertook an energy efficiency improvement project and turnaround on its Tringen I plant,” he said. 

“The company’s operations continue to be affected by natural gas curtailment. Further in the last few months, commodity prices in the energy sector have been falling and as a result the projected earnings will be lower for our investee companies in the gas and petrochemicals sectors. We expect to see a moderate last quarter.

He added: “NBC, LNG and National Flour Mills recorded better earnings. Overall, NEL reported $401 million in profit after tax for the nine months ended December 31, 2014. This represents an increase of 16.3 per cent compared to the previous year. NEL’s latest investment in Phoenix Park Gas Processors Ltd helped NEL to produce attractive dividends for shareholders.

“NEL also recorded its first dividends of $3.6 million from its new investment in PPGPL as part of a consortium that purchased Panwest LLC owners of 10 per cent of PPGPL. The positive impact of these were partially offset by Powergen and NGC, NEL’s earnings being lower than 2013.”

Source:
Nadaleen Singh
Trinidad Guardian
Monday February 16, 2015

http://www.guardian.co.tt/news/2015-02-16/nel-reports-better-performance-tstt