Jul 2015 Financial News

NEL profit up by 144 per cent

Jul 03, 2015

Investment holding company National Enterprises Ltd (NEL) has recorded a 144 per cent increase in profits for the year ended March 31. 

The company’s recently published consolidated financial statements show a profit of $490.5 million, up from the $200.5 million recorded in the corresponding period last year.

NEL chairman Kenny Lue Chee Lip, in his statement to shareholders, attributed the strong performance to TSTT’s return to profitability and an improved performance by NGC NGL Company Ltd (NGC NGL), among other factors.

“Your board’s strategic decisions to pursue a diversification strategy by seeking new investments and strengthening management has also started to produce results,” he said

Lue Chee Lip said NEL had received its first full year earnings from investment in a ten per cent shareholding in Powergen which yielded $11.5 million in dividends, as well as dividends from investments in First Citizens Bank (FCB) and Clico Investment Fund (CIF) shares. 

The company’s November 2014, investment in Panwest LLC, owner of ten per cent of Phoenix Park Gas Processors Ltd, as part of a consortium with the National Insurance Board (NIB) and the Unit Trust Corporation (UTC), produced dividends of $9.8 million for a four month period.

“These positive increases were offset by lower profitability from Tringen due to plant downtime from a capital expenditure Energy Effeciency Improvement Project,” Lue Chee Lip 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 financial year 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 per cent.”

He said NEL had agreed to a divestment and suspension agreement with Cable and Wireless  which would lead to a divestment of that company’s 49 per cent shareholding in TSTT. 

“This will ultimately lead to a new strategic partner for TSTT. We also expect our new strategic investments to continue to generate good returns,” he said.

NEL, which was formed to consolidate the government’s shareholding in select state enterprises, and facilitate a public offering on the T&T Stock Exchange has 600 million issued shares in industries that drive T&T’s economy.

Source:
Trinidad Guardian
Friday July 3, 2015

http://www.guardian.co.tt/business/2015-07-03/nel-profit-144-cent