NEL registers $234.8m profit

National Enterprises Limited (NEL) said its after tax profit for the first half of the financial year amounted to $234.8 million. According to the company’s interim financial statements for the six months ended September 30, 2004, this  was $45.9 million or 25 percent above the half-year results in the comparable period of the previous year.  As a result, it expected that NEL would exceed its forecasted results of $341.4 million in the financial year ending March 31, 2005 as was published in the September 2002 prospectus with the second public share offering.

NEL chairman Jerry Hospedales said financial results of NEL for the first half of the current financial year — April 1, 2004 - September 30, 2004 — have been better than those in the comparable period of the previous financial year - April 1, 2003 - September 30, 2003. NEL, he said, demonstrated an overall healthy performance in its portfolio of assets, in particular those of Trinidad Nitrogen Co Limited (Tringen) which posted improved results as ammonia prices continued to be buoyant. With the prices of natural gas liquids and liquefied natural gas along remaining relatively high, NGC NGL Company Limited (NGC NGL) and NGC Trinidad and Tobago LNG Limited (NGC LNG) showed good returns. National Flour Mills Limited (NFM) has remained profitable.

Telecommunications Services of Trinidad and Tobago Limited (TSTT) has put strategies in place to mitigate the negative impact of the upcoming deregulation of the telecommunication industry, the chairman said in a press advertisement that appeared on Tuesday. As at September 30, 2004 the fair value per share of NEL was $5.45. “This price is based on the valuations by NEL’s directors of the non-quoted shares of the investee companies : Telecommunications Services of Trinidad and Tobago Limited, Trinidad Nitrogen Company Limited, NGC NGL Company Limited, NGC Trinidad and Tobago LNG Limited, and the price of the shares of National Flour Mills (NFM) on the Trinidad and Tobago Stock Exchange (TTSE).

The fair value per share of $5.45 has been confirmed by Pricewaterhouse Coopers, the independent auditors of NEL. At the same date — September 30, 2004 — the quoted share price of NEL was $9.45. On August 11, 2004 NEL paid a final dividend of 23 cents per share in respect of the financial year ended March 31, 2004.