TCL reports second-quarter results

TCL reports second-quarter results
22 July 2015

Having successfully refinance its restructured debt, Trinidad Cement Ltd has been able to take advantage of the maximum discount that was negotiated with creditors in May 2015. Net of fees incurred for the new financing, the company was able to benefit from prepayment discounts of TTD194.2m, all of which has been reflected in its second quarter 2015 results released yesterday.  The restructured debt agreement that was concluded in 1Q was refinanced in May 2015 using proceeds from a Bridge Loan of US$245m and US$15.8m of internal cash.

Revenue and earnings
Group revenue in the second quarter of 2015 was 11 per cent higher than the previous quarter at TTD572.9m due to increase cement sales volumes of eight per cent and higher concrete and aggregate sales. Additionally, revenue for 2Q15 was two per cent higher than 2Q14 mainly due to 2014 price increases as well as higher clinker sales. Concrete and aggregate sales volumes were 10 and five per cent higher, respectively compared to 2Q14.

Earnings before Interest, Tax, Depreciation, Impairment, Loss and disposal of property, plant and equipment,and debt restructuring credit from continuing operations increased by TTD43.1m (31 per cent) ver 1Q15 and by TTD75m (70 per cent) over 2Q14. This performance was largely driven by higher sales and production volumes, price increases implemented in 2014 at TCL, and lower fuel and electricity costs at Jamaican subsidiary Caribbean Cement Co Ltd (CCCL).

Finance cost was TTD10.4m lower due both to the reduced interest rates on the Bridge Loan and a reduction of the principal loan balance from US$292.2m to US$245m.

First half revenue shows revenue of TTD1.1bn, up one per cent YoY and net profit of TTD335.2m compared to TTD32m in 1H14.

TCL is currently in the process of refinancing its Bridge Loan with a longer-term, syndicated loan facility. This is expected to conclude in 3Q15. Once this is concluded, the group will be able to reclassify loan balances to long-term liabilities, which will result in an improved working capital position.

The company also confirmed that it will delist from the Barbados Stock Exchange, the Guyana Association of Securities Companies, and the Eastern Caribbean Securities Exchange, TCL chairman Wilfred Espinet said on Monday evening at the company's AGM. TCL remains listed on the Trinidad and Tobago Stock Exchange and the Jamaica Stock Exchange. Before asking the AGM for approval to delist the company, Espinet said little or no trading of the company's shares takes place on those exchanges yet the company still incurs listing costs.

Published under Cement News