Aug 2015 Financial News

NEL reports lower earnings

Aug 20, 2015

THE National Enterprises Limited (NEL) has reported a profit of $90.6 million for the period ended June 30, 2015.

Chairman Kenny Lue Chee Lip made this report in the company’s consolidated interim financial statements for this period. Overall, he indicated, “Our results for the quarter ended June 30, 2015 reflect lower earnings. Our investee companies” performance is reflecting the full impact of sustained low energy prices coupled with ongoing curtailment issues on the Point Lisas Estate. “ Lue Chee Lip said Tringen’s output and financial performance are also affected by these issues. Lower energy prices from NGC LNG and NGC NGL may persist and earnings may continue to be negatively affected.

Tringen’s earnings have also been impacted by low demand for fertiliser and ammonia due to a harsh winter in North America. Lue Chee Lip said demand and prices may have a mild recovery in the second half of this year.

He also said TSTT recorded lower profitability than 2014 due to increased operating costs and are in the process of a revised strategic plan. National Flour Mills reported a substantially better performance of $9 million versus $1.9 million for the same quarter in 2014 due to significant management focus and operational improvements with employee and union support.

Lue Chee Lip said NEL’s new investments in Powergen and Panwest continue to generate good dividends to support in mitigating the effects of low energy prices.

“We will continue to monitor and work with our investee companies during this challenging period of low energy prices,” he added

Source:
Newsday
Thursday August 20, 2015

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