Apr 2015 Financial News

TCL reports $515 million revenue

Apr 28, 2015

THE Trinidad Cement Limited (TCL) Group of Companies has reported revenues of approximately $515 million for the first quarter of this year.

According to the Group’s interim financial statement for the period ended March 31, 2015, “Group revenue of $514.9 million showed a small increase ($1.3 million or 0.3 percent) compared to Q1(First Quarter) 2014, due mainly to cement price increases implemented during 2014 and 11.1 k tonnes increased clinker sales volume, while cement sales volume declined by four percent. 

TCL also said, “The first quarter (Q1) of 2015 has been a milestone in the history of the TCL Group. The Board is pleased to advise that the Rights issue was successfully concluded on March 31, 2015, with 124.9 million shares being issued and $361.5 million additional capital raised. In addition, restructured debt agreements with lenders came into effect as at March 30, 2015,” 

The Group added, “The main elements of which include: Interest rate has reverted to December 2010 levels (two percent reduction); forgiveness of the default moratorium interest from September 30, 2014 and a discount offered by the financiers if the loan is repaid in 90 days. 

Regarding the outlook for the Group, TCL said, “The proceeds of the rights issue will be utilised for investment in capital expenditure, replenishment of working capital, debt service and restructuring/transaction expenses.” 

The Group further stated, “In addition, the Company is exploring the possibility of refinancing its debt, to take advantage of the prepayment discounts negotiated with the lenders. The Group is in a much improved position and poised to deliver excellent results and generate sustainable rewards for all our stakeholders.” 

The event of default disclosed in the fourth quarter 2014 statement has been remedied with the execution of the restructured debt agreements as at March 30, 2015. As a consequence, the loans have now been re-classified from short-term to long-term, thus improving the working capital from a deficit of $1.5 billion at December 31, 2014, to a surplus of $0.6 billion at March 31, 2015. 

Rights issue proceeds of $361.5 million were received while debt service payments for the quarter amounted to $37.0 million and expenditure on property, plant and equipment was $12.2 million resulting in net cash balance at the end of Q1 of $548.3 million.

Source:
Newsday
Tuesday April 28, 2015

http://www.newsday.co.tt/business/0,210368.html