NEL rebounds from loss to earn $848m

National Enterprises Ltd (NEL) has recorded income of $848 million for the period ended September 30, 2021.

In its condensed financial statement published on Monday, it said the figure represented a significant increase when compared to the loss of $107 million for the comparative period ending September 30, 2020.

NEL's interim dividend payment was three cents per share for shareholders on record as of November 24, 2021, to be paid on December 15, 2021.

Chairman Ingrid Lashley said, “This turnaround has been primarily driven by an increase in the fair market value of NEL’s portfolio of investee companies of $816 million over the period. Dividend income also increased in the comparative period year over year by $1.2 million or 34 per cent.

“Significant gains in the fair value of Trinidad Nitrogen Company Ltd of 194 per cent accompanied by solid growth by NGC NGL Company Ltd of 13 per cent, and Pan West Engineers and Constructors LLC of 13 per cent reflect the strong turnaround in commodity prices and sales, as world markets recover from the impact of the covid19 pandemic, as well as increased supply of natural gas and energy demand in key commercial and industrial sectors locally.”

Lashley said the surging energy prices expected to trend for the foreseeable short and mid-term periods were consistent with an outlook of upward trajectory.

NEL’s non-energy sector investment portfolio, she said, showed strong performance in areas of operational efficiency, cost savings and innovative solutions amid rising supply chain challenges and general market uncertainty.

“As we look forward to the next twelve months having changed our fiscal year-end from March 31 to September 30, we face the prospect of a sustained turnaround in the value of our portfolio companies in the same way that we tackled the reality of falling commodity prices and reduced gas supply with the onset of the covid19 pandemic.

“We will continue our efforts to diversify and transform our portfolio of investee companies. This means decisive actions focused on the restructuring of our portfolio targeting the markets that promote growth and profitability, combined with prudent management of expenses.”

NEL is an investment holding company that holds several direct and indirect investments in companies considered key contributors to the economy. The companies are NFM, NEL Power Holdings Ltd, NGC NGL Co Ltd, NGC LNG Ltd, Pan West Engineers and Contractors Ltd, TSTT and Tringen.