Feb 2016 Financial News

NEL reports $263M profit

Feb 16, 2016

THE National Enterprises Limited (NEL) has reported a profit of approximately $263 million for the nine month period ended December 31, 2015.

This was disclosed by new NEL chairman Gerry Hospedales in the company’s consolidated financial statements for this period. He indicated that compared with $405.9 million for the same period in 2014, this figure reflected a reduction in the profits of $142.9 million or 35.2 percent.

Hospedales indicated that the lower earnings reported in this period, “were mainly due to the under performance of our investee companies in the energy sector.” He noted that apart from feeling the impacts of lower commodity prices including energy which has been in decline since 2014, the effects of the ongoing natural gas curtailment on the Point Lisas Industrial Estate has also affected the earnings of these companies.

Trinidad Nitrogen Company Limited (Tringen), NGC NGL and Panwest were identified as the investee companies.

However, Hospedales said TSTT improved its profits over this period compared to 2014.

“TSTT has lowered its operating costs through more focused managerial control,” he stated.

Hospedales also said that National Flour Mills (NFM), “continues to improve its performance due to significant management focus and operational improvements, with employee and union support.” He said NEL’s investments in Panwest and Powergen have added a degree of stability to the dividends paid to NEL.

Hospedales disclosed that the total dividend to NEL from Powergen and Panwest amounted to $24.5 million.

Indicating that NEL will continue to seek out good medium and long term investments which can enhance shareholder value and earnings, Hospedales said in the last quarter of 2015, NEL participated in the Initial Public Offer (IPO) issued by TTNGL. He said NEL was allocated 1,525,673 shares which have already generated dividends for the company.

He added that NEL also participated in the new Calypso Fund Index launched by the Unit Trust Corporation.

“The investment was $50 million. We envisage solid and stable dividends from both of these investments,” Hospedales said.

Source:
Newsday
Tuesday February 16, 2016

http://www.newsday.co.tt/business/0,224094.html