Aug 2013 Financial News

Strong results for TCL

Aug 14, 2013

Claxton Bay producer Trinidad Cement Ltd has recorded a strong performance for the six-month period ended June 30.
In a joint published statement last week, TCL chairman Andy Bhajan and group chief executive Dr Rollin Bertrand noted that for the second quarter, the group’s earnings before interest, taxes depreciation and amortisation (EBITDA) was $147.0 million from sales of $512.0 million, which increased by $88.1 million from the secondn quarter of 2012.
Following is their full review of the company’s performance:
The Group recorded a strong performance with Earnings per Share (EPS) of 19 cents for Q2 2013 and 26 cents for 2013 half year. Excluding the 12 cents impact of the reversal of a withholding tax obligation, EPS would have been seven cents for the quarter compared with Loss per Share of 35 cents in the prior year period and 14 cents for the 2013 half year compared with a Loss per Share of 60 cents in 2012 half year.
For Q2 2013, the Group’s Ebitda was $147.0 million from sales of $512.0 million, which increased by $88.1 million from Q2 2012. The Ebitda for the quarter includes a credit of $38.8 million from the reversal of an accrued withholding tax obligation at our Jamaican subsidiary consequent upon the restructuring of US$75.0 million due to the parent.
Excluding the reversal credit, Ebitda would have been $108.2 million, an increase of $87.9 million (or 433 per cent) compared with Q2 2012 reflecting a margin of 21.1 per cent, a significant improvement from the ten per cent for 2012.
For the six months ended June 30 2013, from sales of $994.1 million the Group generated Ebitda of $261.2 million. Excluding the withholding tax credit of $38.8 million, Ebitda would have been $222.4 million, an improvement of $191 million, and reflecting a margin of 19.2 per cent. The improvement in Ebitda was due to a 17 per cent increase in domestic cement volumes, especially in the Trinidad market, and a 48 per cent increase in export cement volumes following the sharp decline in volumes during the labour strike in 2012. Better average prices also contributed to the higher Ebitda margin as well as improved plant performance particularly in Jamaica.
Finance costs for the six months ended June 30 2013, increased by $12 million over the comparative 2012 period due partly to foreign exchange losses recorded by our Jamaican subsidiary as a result of the continued depreciation of the Jamaican dollar. The restructuring of this subsidiary’s capital balances has significantly reduced the earnings statement exposure to Jamaican dollar depreciation going forward.
The group closed Q2 2013 with $51.8 million in cash after settling on June 21, the quarterly instalment of $71.4 million on the Restructured Debt as well as spending $32.0 million on capital projects over the half year. At June 30 2013, the group had satisfied the ratio covenants in its Restructured Debt agreement.

Outlook
Verbal agreement has been reached with the governments of Venezuela and Jamaica to supply 200,000 MT of clinker over the next 12 months under the PetroCaribe trade mechanism. The group is hopeful this initial order, though small, will be a breakthrough for a larger transaction in the near term. At the same time, greater market share in other markets is being pursued.
The group has begun to pursue the refinancing of the debt portfolio that carries an average rate of almost ten with the aim of achieving a significant reduction in cost and payments. Directors are confident, that with these and other initiatives, the droup will build on the operating and financial improvement recorded for the first six months of 2013.


Source:
Trinidad Express
Wednesday August 14, 2013

http://www.trinidadexpress.com/business-magazine/Strong-results-for-TCL-219509841.html