Aug 2016 Financial News

Massy profit declines in third quarter

Aug 17, 2016

Increases in the Green Fund Levy and Business Levy, which contributed to an increase in the effective tax rate for Massy Holdings Limited, were among the factors blamed for a six per cent decline in the group’s third quarter profit after tax. 

The group’s unconsolidated financial statement for the quarter ended June 30 show that the profit was down from $416 million to $389 million, while earnings per share declined by seven per cent from $3.95 to $3.68.

According to chairman Robert Bermudez, other factors that affected the group’s financial performance included a higher effective tax rate from profits from overseas and the inability to use some losses for tax relief.

Massy’s third-party revenue through the end of the third quarter was $8.7 billion compared with $8 billion over the same period in 2016.

“The group’s profit from its territories outside of Trinidad and Tobago before head office charges increased by 15 per cent above 2015,” Bermudez said.

“In Trinidad and Tobago, contraction in the energy sector and the weakening of consumer demand led to a 25 per cent decline in profit from operations. 

However, 53 per cent of the profit before tax decline from Trinidad and Tobago is attributable to a one-off expense for a maintenance charge for the joint venture air separation plant in Point Lisas and the start-up costs of the internet and TV business.”

He said the group’s growth initiatives are “progressing well,” with construction of the Methanol and DME plant continuing on schedule.

“Prior to issuing this statement, all agreements required for draw-down on the loan from Japan Bank of International Co-operation were signed and sponsors’ equity injections will be supplemented by lenders funds going forward,” he said.

Bermudez said the group is managing foreign exchange availability “through intense efforts and has been meeting all of its foreign exchange requirements through a combination of strategies.”

Group debt was $2.2 billion comprising mainly TT-dollar long-term debt of $1.8 billion, while gearing improved from 33.3 per cent to 32.4 per cent and cash balance peaked at $1.85 billion.

“With healthy cash flow generation from operations, the group is in an excellent position to continue to fund its growth initiatives. However, the group enjoyed a number of one-off gains in the fourth quarter of 2015, which the group does not expect in 2016,” he said.

Source:
Trinidad Guardian
Wednesday August 17, 2016

http://www.guardian.co.tt/business/2016-08-17/massy-profit-declines-third-quarter