NEL reports $133m loss over 6 months

THE National Enterprises Ltd (NEL) has reported a loss of $133.3 million for the six-month period ending March 31.

Company chairman Ingrid L-A Lashley made this comment in NEL's condensed financial statements for this period.

Lashley attributed the loss to the volatility and depressed prices in the energy sector over the comparative period last year.

"The decline is also reflected in the operating profit of $110.7 million compared to $381.2. million in the same period of 2023.

"This downturn was primarily driven by a 72 per cent reduction in the dividend income received from our portfolio of investee companies."

Lashley said a major contributing factor to NEL's performance over the period in question was a net unrealised decrease of $267.5 million "in the fair value of one of our investments in the energy sector."

Given the nature of the energy sector and the evolving plans in the gas sub-sector, she continued, it is prudent to recognise that a major assumption underlying such valuations may be deemed overly conservative.

"We remain cognisant of the potential impact of these developments on our valuation assessments."

Lashley said despite this, short-term investments of surplus funds over the last financial year "allowed NEL to maintain a healthy cash position of $123.9 million compared to $132.8 million in 2023., even after an interim dividend payment of $0.24 per share in January."

She expressed NEL's commitment to the careful management of cash reserves and the strategic leveraging of favourable investment and interest rate conditions.

"We intend to continue providing balanced returns for our shareholders through strategic deployment of capital. Thus, we will continue to navigate these uncertainties and explore opportunities for growth in shareholder value."

NEL is an investment holding company incorporated on August 27, 1999, by Government.

Its investee companies include the Telecommunications Services of TT (TSTT), National Flour Mills (NFM), NGC LNG, NEL Power Holdings Ltd, Trinidad Nitrogen Company Ltd (Tringen), NGC NGL and Pan West Engineers and Constructors LLC.