Mar 2008 Financial News

ANSA McAL records $908 million profit

Mar 28, 2008

ANSA McAL yesterday declared profit from its 2007 operations of $908 million even as Norman Sabga, the group’s chairman and chief executive, told stockbrokers and reporters that he was “very optimistic” about the country’s future and that the group was focussed on making acquisitions that were the right fit.

The ANSA McAL profit from its operations was $198 million or 28 per cent higher than the 2006 figure while its after-tax profit in 2007 was $709.8 million—22.5 per cent more than the year before.

Unveiling the group’s audited results for the year ended December 31, 2007, at the ANSA McAL head office on Maraval Road in Port-of-Spain, company officials revealed that ANSA McAL had an asset base of $9.2 billion, a market capitalisation of $8.4 billion at the end of 2007 and third party revenues which jumped by 20.7 per cent to $4.9 billion.

The company’s directors agreed to pay a final dividend of $0.60 per share bringing total dividend payments for the year to $0.90 on earnings per share of $3.53.

At the financial review, ANSA McAL sector heads made short presentations on their portfolios: beverage and manufacturing; automotive and distribution; financial services and media and services. All sectors showed significant growth, according to the sector heads.

Speaking about the conglomerate’s decision to withdraw its bid for Barbados Shipping and Trading last year, Norman Sabga, the ANSA McAL chairman, said, “We thought it was a perfect fit for our group.” But he added that the acquisition process became unweildly in the way the cross-border bidding took place and the group decided to withdraw its offer after being advised by senior counsel.

He said that the group was on the lookout for acquisitions that were a good fit and because it was “virtually debt-free” ANSA McAL had the ability to make fairly large specific investments.

On his optimism about the economy, Sabga said: “We think that this economy is going to continue to do well for the next ten years. We are confident and we are putting our investment dollars behind that. We are very confident and we continue to plan for growth.”

Asked about the sale of RBTT to the Royal Bank of Canada, Sabga said that the ANSA McAL group owned a 2.5 per cent stake in the bank and therefore expected to take some portfolio benefits. He said there would have to be a wait-and-see attitude on whether the sale of 100 per cent of RBTT would be successful.

Group chief operating officer, Gerry Brooks, described ANSA McAL as the largest investor outside of the energy sector and said that the group’s capital expenditure in 2007 was between $300 and $400 million.

Group chief financial officer Aneal Maharaj told reporters and stockbrokers that the company’s balance sheet was very strong and its portfolio of investments was well-diversified.


Source:
The Trinidad Guardian
Friday March 28, 2008

http://www.guardian.co.tt/business4.html