Aug 2015 Financial News

NEL reports $490 million profit

Aug 24, 2015

THE National Enterprises Limited (NEL) has recorded a profit of $490.5 million for the year ended March 31, 2015. This was revealed by NEL chairman Kenny Lue Chee Lip in the company’s annual report 2015. Lue Chee Lip said this compared favourably to $200.5 million in the previous year, representing an increase of 144.7 percent. Earnings per share was $0.80 compared to $0.32 for the prior year.

Lue Chee Lip said TSTT returned to profitability in 2015 contributing $108.6 million to NEL compared to a loss of $226 million in 2014.

This was driven by improved operational performance after making VSE P provisions in 2014.

NGC NGL also performed marginally better in 2015. Your Board’s strategic decisions to pursue a diversification strategy by seeking new investments and strengthening management has also started to produce results.

“NEL has received our first full year earnings from our investment in a ten percent shareholding in PowerGen yielding $11.5 million in dividends, as well as dividends from our investments in FCB and CIF shares. In addition, our investment in November, 2014 in Pan West, LLC as a member of a consortium with the NIB and UTC, produced dividends of $9.8 million for a four-month period,” he added.

Lue Chee Lip continued, “These positive increases were offset by lower profitability from Tringen due to plant downtime from its shutdown for works associated with the Energy Efficiency Improvement Project.

This project was funded entirely from internal funds, and therefore Tringen’s final dividends for the year ended December 31, 2014 will be paid to NEL after our year end of March 31, 2015.” Lue Chee Lip also said, “ TSTT also did not pay any interim dividends, and will therefore pay a final dividend in respect of the year ended March 31, 2015 in NEL’s FY 2016.” NGC NGL also produced higher results than 2014 and NFM has also reported improved earnings. Total Dividend Income was therefore $318,028 compared to $305,014 in 2014, an increase of 4.2 percent.

Source:
Newsday
Saturday August 22, 2015

http://www.newsday.co.tt/business/0,215972.html