TCL sees strong rise in 2013 earnings

TCL sees strong rise in 2013 earnings
Published: 04 March 2014


For the year 2013, Trinidad Cement Ltd Group recorded a notable improvement in its financial performance with EBITDA increasing by TTD268.9m, or 174 per cent, to TTD423.4m (US$66.3m).
This reflects a margin of 21.8 per cent compared with the previous year margin of 9.6 per cent, the company’s results stated.

Domestic cement sales volumes increased by 13 per cent, largely driven by advances in Trinidad and Jamaica, while exports rose 22 per cent and clinker output was up by 15 per cent. The higher sales volumes resulted in group revenue increasing by TTD325m, or 20 per cent compared with 2012.

For the year 2013, the group reporting a profit after tax of TTD67.3m compared with a loss of TTD388.2m for 2012. The results for 2013 also benefited from lower depreciation, impairment charges, finance costs and a deferred tax credit compared with 2012.
 
“The Group’s financial position and liquidity continued to strengthen over 2013 with all loan payments being made and financial ratio covenants being achieved in accordance with the debt restructuring agreement,” the company said in a statement.

For the fourth quarter ended December 2013, revenue increased by TTD50.5m, up 13 per cent YoY, while EBITDA improved 116 per cent YoY to TTD41.3m.
 
However, the group noted that the final quarter of 2013 was negatively impacted by lower sales volumes compared to the average of the prior three quarters as well as production challenges at the Barbados plant.

Outlook
Critical repairs at the Barbados plant have been completed while local demand is in line with TCL’s expectation and exports are being made to the buoyant Guyana market and others.
 
Demand in Jamaica in the first two months of 2014 was slower than 2013 but growth is forecast for the economy in 2014, which tends to benefit the construction sector. The plant in Jamaica will fulfil the remainder of its 100k tonnes Venezuela supply contract and negotiations have commenced for a new contract to supply 240,000t over 12 months.