Home' Trinidad and Tobago Guardian : October 21st 2014 Contents A18
Guardian www.guardian.co.tt Tuesday, October 21, 2014
This improvement was driven by
growth in the domestic cement
markets in Trinidad and Jamaica,
whilst the Barbados market
remained relatively flat, they
explained. In addition, concrete
sales improved by 12.3 per cent. In
Jamaica, Caribbean Cement
Company Ltd (CCCL) was able to
supply 80.3k tonnes of clinker (nil
in 2013) to Venezuela under the
PetroCaribe agreement. Price
increases were implemented in
Trinidad, Jamaica and Guyana.
Just weeks after the company defaulted on a
loan, directors of Trinidad Cement Ltd (TCL) say
they are negotiating a restructured loan agree-
ment with their financiers.
The matter is addressed in a directors statement
issued jointly by group chairman Wilfred Espinet
and acting group CEO Alejandro Ramirez as part
the company s consolidated interim financial report
for the nine months ended September 30.
They said it is part of a "comprehensive financial
and operational review of the group" and a restruc-
turing plan to secure TCL s long-term viability is
due to be completed by October 31,
The directors said: "In accordance with inter-
national financial reporting standards, the total
principal outstanding has been reclassified to cur-
rent liabilities in the consolidated statement of
"This has resulted in the group showing a net
current liability of $1.5 billion compared to net
current assets of $138 million at Q3 (third quarter)
The company, based at Claxton Bay in Trinidad,
failed to make debt payments on September 30.
In a notice to stakeholders published the day
before, TCL officials said all payments due under
the existing restructured loan agreements had
been placed on hold and company representatives
had met with "its lenders for the purpose of updat-
ing them on the present state of the company."
"PricewaterhouseCoopers, which has been com-
missioned by the board to conduct the financial
assessment of the company, presented its initial
findings at the meeting.
"Subsequent to the meeting, the board of direc-
tors took a decision to place a hold on all payments
due under the existing restructured loan agree-
ments and proposed a standstill.
Following that development, the company was
downgraded by two international credit ratings
agencies---Standards & Poors and Fitch Ratings.
However, there is some positive news in the
company s latest financial reports, which cover
the nine months ended September 30. It shows
that TCL recorded revenue growth of $97.2 million
or 6.5 per cent. The company s directors said in
their statement that this was a continuation of a
trend of improvement over the two preceding
quarters of the year.
"This improvement was driven by growth in
the domestic cement markets in Trinidad and
Jamaica, whilst the Barbados market remained
relatively flat," they explained.
"In addition, concrete sales improved by 12.3
per cent. In Jamaica, Caribbean Cement
Company Ltd (CCCL) was able to supply
80.3k tonnes of clinker (nil in 2013) to
Venezuela under the PetroCaribe agree-
ment. Price increases were implemented
in Trinidad, Jamaica and Guyana."
TCL s operating profit before taxes
increased by $31.3 million or 9.6 per cent
but increased revenue was eroded by esca-
lating costs in Jamaica due to the depre-
ciation of that country s dollar, as well
as increased operating costs in Barbados.
"Net finance costs decreased by $29.7
million due to lower foreign exchange
losses of $15.4 million and lower net inter-
est cost of $14.3 million," the directors
"Profit after taxes amounted to $63.7
million compared to $78.9 million---inclu-
sive of one time tax credit of $37.7 mil-
lion---in the prior year period which
resulted in earnings per share of 24.4
cent compared with 28.2 cents for the
The directors also reported on the dis-
continuation of operations of Premix and
Precast Concrete Inc (Barbados), a sub-
sidiary of Readymix West Indies Ltd
(RML) with effect from September 30.
They said this was due to "the prolonged
operating losses at the location, resulting
in a loss if $3.4 million for the quarter
and $4.2 million for the nine months of
Negotiations are in progress with the
OIlfields Workers Trade Union (OWTU)
with the aim of coming to an agreement
on retroactive payments for their expired
collective agreements, the directors said.
TCL reviews finances and operations
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