NEL reports $140.8m loss

The National Enterprises Ltd (NEL) has reported a net loss after tax of $140.8 million for the nine months ended June 30.

In its condensed financial statements, published on the TT Stock Exchange website on August 5, NEL said this loss was in contrast to the net profit of $445.2 million in 2023.

NEL said this was largely due to unrealised fair value losses amounting to $774 million in its energy portfolio investee companies.

NEL is a holding company which has shares in seven companies, four of which are in the energy sector.

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

NEL's total assets also declined by $1.4 billion or 32 per cent over the comparative period.

However, chairman Ingrid Lashley, in her report said NEL still maintains a 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.

"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 said.

She added that NEL is "cautiously optimistic" about the medium-term prospects, particularly in its ongoing efforts by upstreamers and the TT National Gas Company Ltd (NGC) 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 (NFM) and Telecommunications Services of TT Ltd (TSTT), reinforces our confidence in sustained earnings and strategic growth."

Even though in the red, NEL said it remains vigilant and adaptable, poised to capitalise on diversification opportunities that will fortify its portfolio's long-term value.

At its annual general meeting on June 7, shareholders expressed concern over the shaky financial performance of the holding company.

Addressing the shareholders, Lashley pointed out that over 60 per cent of NEL’s investments are in the energy sector, which is seeing significant volatility at the moment. NEL recorded a net loss of $133 million for the year ending March 31, as compared to a profit of $447.5 million for the same period the year before.

However, NEL assured its shareholders that while the company is experiencing bottom-line losses, its retained earnings continue to be robust and short-term investments remain healthy.