Aug 2015 Financial News

NEL profit down 28%

Aug 21, 2015

National Enterprises Limited (NEL) suffered a drop in profit for the quarter ended June 20, down by 28 per cent from $126.2 million in 2014 to $90.6 million.

Chairman Kenny Lue Chee Lip said the results reflected lower earnings due to the impact of low energy prices on investee companies and ongoing gas curtailment issues at the Point Lisas Industrial Estate.

“Tringen’s output and financial performance are also being affected by these issues,” he said.

“It is forecasted that the low energy prices from NGC LNG and NGC NGL may persist and therefore earnings may continue to be negatively affected.

“In addition to gas curtailment affecting production and efficiency, Tringen’s earnings have also been impacted by low demand for fertiliser and ammonia due to a harsh winter season in North America.

“It is expected that demand and prices will have some mild recovery in the second half of the year.”

Lue Chee Lip said NEL’s financial results were also affected by the lower profitability recorded by TSTT due to increased operating costs.

However, National Flour Mills recorded “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.”

“Our 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 said.

Incorporated on August 27, 1999, NEL is an investment holding company operating on behalf of Government.

It holds shares in selected state enterprises, including 51 per cent holding in TSTT, and 20 per cent of the shares in NGC NGL Company Limited.

NEL also facilitates a public offering on the T&T Stock Exchange (TTSE).

NEL’s latest financial results were posted on the TTSE yesterday

Source:
Trinidad Guardian
Friday August 21, 2015

http://www.guardian.co.tt/business/2015-08-21/nel-profit-down-28