Mar 2016 Financial News

Jamaica drives revenue for Trinidad Cement Ltd

Mar 02, 2016

TRINIDAD Cement Ltd (TCL) Group recorded its highest ever revenue of TT$2.1 billion (US$1US = TT $6.51) for the 12 months of 2015, an increase of TT$12.4 million when compared to the year before — mainly driven by the increase in cement and clinker sales volumes in Jamaica.

Meanwhile, debt restructuring, reduced energy costs, and increased demand in Jamaica, among other factors, accounted for the elevenfold increase in net income for subsidiary company Caribbean Cement Ltd (CCL), company directors indicated in audited financials released on Monday.

CCL realised profit after tax of $1.55 billion ($1=US$121.8) in 2015. This compared to net earnings of $138.99 million earned the year before.

CCL directors note that improved performance was driven by the increased domestic cement sales volumes of 12 per cent and clinker sales of 16 per cent, compared to the corresponding period in 2014.

As a result, revenue for the year grew by $1.08 billion, some seven per cent above 2014. Increased local sales compensated for a decline in cement export sales volumes, it was noted.

The year’s improved results were also the outcome, directors said, of better operational practices, cost controls, and lower costs of fuels and energy.

Additionally, interest expense for CCL was slashed by 41 per cent for the year, as a result of the conclusion of financial restructuring initiatives which saw prepayments of long-term debt in excess of $800 million.

Parent company Trinidad Cement Limited explained in its own audited results that the group completed its capital restructuring, which included negotiating amendments to a restructured loan agreement with its lenders and which addressed a condition of debt default which existed as at December 31, 2014.

Additionally, during 2015 TCL successfully completed a rights issue of 124.9 million shares and raised net proceeds of TT$361.5 million.

It also negotiated a short-term loan agreement in May 2015, which was followed by a five-year loan agreement in August 2015 to repay all debt under a specified override agreement.

As at December 31, 2015, total borrowings for TCL Group were reduced to TT$1.2 billion, compared to TT$1.8 billion as at December 31, 2014.

Profit after taxes for TCL was TT$428.7 million when compared with losses of TT $211.0 million in the prior year.

The TCL Group is a producer and marketer of cement and ready-mix products in the Caribbean. Its website lists eight operating companies in Trinidad, Barbados, Guyana, Jamaica and Anguilla.

TCL is an associate company of global cement retailer Cemex, which owns a 39.5 per cent shareholding in the Caribbean company.

Source:
BY AVIA COLLINDER
collindera@jamaicaobserver.com
Business reporter
Jamaica Observer
Wednesday March 2, 2016     

http://www.jamaicaobserver.com/business/Jamaica-drives-revenue-for-Trinidad-Cement-Ltd_53256