Nov 2012 Financial News

TCL declares loss of $178m

Nov 07, 2012

Trinidad Cement Ltd (TCL) yesterday declared an unaudited after-tax loss of $178.4 million for the nine-month period between January and September, which is an increase of $36.7 million over the loss of $141.3 million for the same period in 2011. The 26 per cent increase in its after-tax losses for the nine-month period is in keeping with the audited loss of $384 million that TCL declared for its 2011 financial year.

The finances of the cement company, which is based at Claxton Bay in south Trinidad and has operations in Barbados and Jamaica, also suffered as a result of a three-month strike called by its trade union, the Oilfields Workers Trade Union, earlier this year. The union was protesting for higher salaries for workers at the Trinidad operations.

TCL also endured an 18-month period during which it negotiated a rescheduling of its $1.8 billion in debt with its creditors who include several of T&T’s largest financial institutions. TCL experienced a 7 per cent increase in revenues, which moved from $1.15 billion to $1.21 billion as a result of increased selling prices as total cement volumes declined by 12 per cent.

And while its earnings before interest, tax, depreciation and amortisation increased by $74 million to $122.7 million in 2012, these earnings were wiped out by a $51 million increase in net finance expenses and additional costs for legal services, financial advisory and stamp duty amounting to $43.5 million, which were incurred on the debt restructuring exercise.

The losses could be as a result of protest by TCL’s workers but, according to the directors’ statement signed by Group chairman, Andy Bhajan and Dr Rollin Bertrand, group chief executive officer, “Trinidad plant has fully recovered from the protracted strike earlier in the year and stands to benefit from the Government of T&T’s construction programme as it is implemented.”

Measures have been put in place to ensure that there is consistency. “Critical repairs and maintenance which were previously on hold are now being undertaken so that plant operations, particularly in Jamaica and Barbados will be reliable and consistent going forward.”

TCL’s cash flows, net cash/borrowings at the end of 2012 totalled $116,942,000— according to the consolidated statement of cash flows. Total equity decreased in September 30, 2012 to $987,823,000 compared to that same period in 2011 where it stood at $1,412,622,000.

Looking at its business in segments, cement contributed to the highest losses. For the period ended September 30, 2012 losses in its unaudited statements in cement, totalled $206,934,000 while the losses experienced its cement business for that same period in 2011, totalled $222,124,000.

The future looks promising to TCL, according to the directors’statement, “Export sales into markets such as Brazil, Haiti, Suriname and French West Indies are being expanded whilst price adjustments in all markets are being effected in a timely manner. “Notwithstanding the foregoing, the overall business environment remains challenging, especially in Jamaica and Barbados,” the directors’ statement said.


Source:
Trinidad Guardian
Wednesday November 7, 2012

http://www.guardian.co.tt/business/2012-11-07/tcl-declares-loss-178m