Small increase for TCLDr Rollin Bertrand (FP)
Tue, August 14, 2012 - 12:01 PM
TRINIDAD CEMENT LIMITED (TCL) recorded a small increase in revenue for the first six months of 2012 due to higher pricing as domestic and export volumes fell by five per cent and 24 per cent, respectively.
The consolidated interim financial report for the six months ended June 30, 2012, show that group revenue of TT$789 million (BDS$237.1 million) exceeded the prior year’s by TT$29.5 million (BDS$8.86 million), or 3.7 per cent.
However, the directors explained that the Trinidad and Barbados markets saw volumes decline by 12 per cent and 11 per cent respectively due to soft demand.
The lower exports were due to reduced production as a result of the labour strike in Trinidad and plant difficulties in Barbados.
Group chairman Andy Bhajan and director and chief executive officer Dr Rollin Bertrand noted that pre-mixed volumes were flat compared to the prior year.
They added that the group incurred additional restructuring expenses of TT$40.3 million (BD$12.7 million) over the period as the execution of the debt-restructuring agreements did not take place until May 10 and all conditions were not satisfied until June 15.
Net finance expenses amounted to TT$110.7 million, which is TT$30.2 million more than the prior year, “as the expenses for 2012 include an additional 200 basis points in interest cost in accordance with the terms of the debt restructuring”.
“The expense for 2012 was also negatively impacted by exchange losses of TT$9.8 million from our Jamaica operations,” the directors said.
Bhajan and Bertrand noted that debt repayment will commence in March 2013 and spread until December 2018 when a bullet payment representing 42.6 per cent of the restructured debt will be payable.
They said the cash balance at the end of the 2012 half-year was much improved by the advance payments of US$12 million arising from two sales contracts. (NB)
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