NEL reports $140.8m loss | Local Business | trinidadexpress.com

NATIONAL Enterprises Ltd (NEL) has reported a net loss after tax of $140.8 million for the nine months ended June 30, 2024, marking a significant turnaround from the $445.2 million after tax profit for the corresponding period the previous year.

In her chairman’s statement for the period Ingrid Lashley explained that the loss for the nine months ended June 30, 2024 was due largely to unrealised fair value losses amounting to $774 million in NEL’s energy portfolio investee companies.

Incorporated in August 1999, NEL provides local investors with the opportunity to access the energy markets via the Trinidad and Tobago Stock Exchange.

NEL has holdings in energy companies Trinidad Nitrogen Company Ltd, NGC NGL Company Ltd, Pan West Engineers and Constructors LLC, NEL Power Holdings Ltd, and NGC Trinidad and Tobago LNG Ltd.

Lashley described the nine-month period as “challenging yet promising.”

“Despite a decrease in operating profit to $115.1 million (from $387.4 million in 2023), primarily influenced by a 70% decline in dividend income, our investment income saw a 40% increase to $10.4 million,” Lashley stated.

Lashley also noted that NEL’s total assets declined by $1.4 billion or 32% over the comparative period, reflecting the decline in fair value alongside its recent dividend payout of $90 million.

“Amidst these financial challenges, NEL maintains robust operational performance and healthy cash balances. Operational cash flows of $110.3 million, buoyed by improved investment returns, facilitated an interim dividend payment of $90 million for the financial year 2024 to date. Cumulatively, dividends for this period amounted to $234 million, up from $222 million in the corresponding prior period, underscoring our commitment to delivering shareholder value,” Lashley stated.

Looking forward, Lashley expressed cautious optimism about the medium-term prospect, particularly with the ongoing efforts by the National Gas Company of T&T Ltd to stabilise local gas supply.

“Anticipating more consistent production and supply within the next two years in the petrochemical sector, we foresee a balanced income distribution across the energy segment, enhancing value flow to our shareholders and stakeholders. Furthermore, the resilient performance of our non-energy assets, such as National Flour Mills Ltd and Telecommunications Services of T&T Ltd, reinforces our confidence in sustained earnings and strategic growth,” Lashley stated.

“As we navigate through cyclical market risks beyond our control, NEL remains vigilant and adaptable, poised to capitalise on diversification opportunities that will fortify our portfolio’s long-term value,” she stated.