Updated: 20-12-2024 - 12:00PM 6 4 CLOSED
Apr 26, 2016
Less than a year after completing a major debt restructuring exercise, the Trinidad Cement Ltd (TCL) Group has recorded its highest revenue of $2.1 billion.
Financial results just released by the group also show profit after tax of $428.8 million—a significant turnaround from losses of $211 million in 2014.
Group chairman Wilfred Espinet told shareholders that in addition to successfully restructuring its debt, TCL was able to generate positive cash flow and is “becoming a global company that will be able to operate and sustain itself over time in this global environment.”
He added: “We are all faced with the challenges of the global economic climate—one which in T&T is very obvious—and with each passing day is becoming more and more apparent as to the extent of transformation that needs to take place in this existing environment. We at TCL can take comfort in that we started the process ahead of the curve.”
At TCL's 65th annual general meeting at the Trinidad Hilton and Conference Centre, Espinet said the group’s “unprecedented” revenue performance “was mainly driven by a 12 per cent increase in cement sales volume in Jamaica and a 16 per cent increase in clinker sales volumes.”
Group CEO Jose Seijo Gonzalez said given TCL’s sound financial base, the company will focus on best practices in health, safety and the environment (HSE).
“Numerous actions were put in place, investing close to $40 million across group in projects related to employees' well being and the work environment,” he said.
TCL completed a major debt restructuring in May 2015, after missing debt service payments in September 2014.
The exercise included an 11 per cent debt prepayment discount and a US$15 million cash prepayment, which reduced its outstanding debt to US$245 million from about US$292 million at the end of 2014.
The cement manufacturing group, based at Claxton Bay, refinanced its debt through a bridge loan after getting an equity injection of US$57 million in March 2015, US$44.8 million of which Mexican cement maker Cemex injected, increasing its stake in TCL to 39.5 per cent from 20 per cent through one of its subsidiaries, Sierra Trading.
TCL used the proceeds of the equity injection to finance capital expenditures, working capital, and strengthen its cash balance. The company also entered into a technical and managerial services agreement with Cemex, including support in manufacturing, procurement, planning, shipping, and trading activities.
As part of the agreement, five Cemex executives were appointed to TCL’s management, including the group CEO.
The TCL Group is the leading producer and marketer of cement and ready-mix products in the Caribbean, with eight operating companies in T&T, Barbados, Guyana, Jamaica and Anguilla.
Source:
Rapheal John-Lall
Trinidad Guardian
Tuesday April 26, 2016
http://www.guardian.co.tt/business/2016-04-26/tcl-moves-loss-profit