MAJORITY State-owned investment holding company National Enterprises Ltd (NEL) on Friday announced after-tax profit of $2.33 billion for the 15 months ending June 30, 2022, compared with a loss of $252.2 million dollars for the 15-month period ending June 30, 2021.
NEL’s dividend income for the 15-month period totaled $274.4 million, or 11.7% of the company’s after-tax profit, while changes in fair value accounted for 88.3% of profit of the society.
For the 15-month period from April 1, 2021 to June 30, 2022, NEL recorded operating profit of $274.9 million, compared to $29.8 million for the prior year period.
For the quarter ending June 30, 2022, NEL reported after-tax profit of $259.2 million, compared to $18.1 million for the same period in 2021.
The reason the company released its financial results for a 15-month period is that its fiscal year end was changed to March 31 to September 30, 2021, from the 18-month period ended September 30, 2022.
Explaining the impact of this change, NEL Chairman Ingrid Lashley said: “This change in financial reporting will allow for the timely inclusion of the performance of our beneficiary companies as it impacts our bottom line.
“However, the change in financial period results in an anomaly in the comparative periods, which we have corrected by expanding our financial reporting to include quarterly financial results, as well as the last fiscal year ended March 31.”
In its company earnings statement, Lashley said: “The increase in operating profit over the comparative 15-month period of $245.1 million and the comparative three-month period of $259.6 million was largely a direct result of the performance of energy companies in NEL’s portfolio, particularly Trinidad Nitrogen (Tringen) and Phoenix Park Gas Processors.
She said NEL’s total assets increased by 104% to $4.5 billion as of June 30, 2022, from $2.2 billion as of June 30, 2021.
“This increase represents growth in the fair value of the portfolio of businesses held by NEL, largely tied to the performance of the energy sector,” Lashley said.
Lashley said, “NEL will continue to focus on creating optimal value for our shareholders through investment diversification to generate increased dividend income and fair value appreciation for our investee companies.”
Following the company’s collection of a total of $274.4 million in dividend income for the 15-month period ending June 30, 2022, NEL’s directors declared a second interim dividend of $0 $.25 per share for the financial period ending September 30, 2022. The dividend will be paid on September 28, 2022 to shareholders of record on September 7, 2022.
With an issued share capital of 600,000,641 shares and a dividend of $0.25 per share, NEL shareholders will receive a total of $150,000,160.
Of this amount, NEL’s main shareholder, Corporation Sole (Minister of Finance) with a 66.7% stake, will receive $100,050,106.72.
National Enterprises Limited (NEL) is an investment holding company incorporated on August 27, 1999 by the Government of the Republic of Trinidad and Tobago. NEL was created to consolidate government ownership in certain state-owned enterprises and facilitate public offerings on the Trinidad and Tobago Stock Exchange.
NEL has invested in the industries that drive Trinidad and Tobago’s economy: natural gas and energy-based manufacturing, telecommunications, power generation, marketing, and staple food manufacturing.
The company owns:
• 51 percent of telecommunications services in Trinidad and Tobago;
• 51 percent from Trinidad Nitrogen (Tringen);
• 51 percent of national flour mills;
• Approximately 14% of Phoenix Park Gas Processors, through its holding companies — NGC, NGL and Pan West, combined with its interest in T&T NGL (which trades on the T&T Stock Exchange as NGL);
• 10% of the electricity production company PowerGen;
• Ten percent of Atlantic LNG Train 1.
The main shareholders of NEL, as of March 31, 2021, are:
• Minister of Finance (Sole Corporation)*396,324,698*66.05%
• National Gas Company of T&T*100,000 641*16.67%
• National Insurance Office*25,000,000*4.17%
• Republic Bank Ltd A/C 1161 01*7 502 000*1.25%
• Trintrust Ltd A/C 1088*5,342,068*0.89%
The issued share capital of the company is 600,000,641 shares.