Home' Trinidad and Tobago Guardian : May 6th 2014 Contents A17
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Trinidad Cement Ltd (TCL) Group CEO
Dr Rollin Bertrand yesterday released
the 2014 first quarter results of
subsidiary Readymix Ltd (RML), noting
that the company "achieved a net profit
of $1.7 million for the first quarter of
2014, compared with a loss of $244,000
for the same period last year". "This
improvement is mainly attributable to
higher revenue for the period, due to
increased construction activity in the
Trinidad and Tobago market," he said.
"Management remains optimistic that
this upward trend in performance will
continue for the rest of 2014."
Like its parent, RML is now emerging
from a series of consecutive periods of
net losses under Bertrand's leadership.
The country's largest cement
manufacturer traded at an all-time low
of 94 cents per share on the T&T Stock
Exchange, and remained stuck below $1
for most of the four months of April to
July 2013. However, later that year, it hit
a 52-week high of $2.94 on
announcement of a turnaround.
Having broken the three-year
resistance level of $2 per share, the
stock is now back down, resting on the
same $2 for support. Readymix Ltd, a
company TCL acquired in November
1995, is the single largest producer of
pre-mixed concrete inT&T and the
TCL: Construction activity increasing
In one of his first public
comments as interim executive
chairman of the London-
headquartered BG Group,
Andrew Frederick James
Gould has underscored the
importance of T&T s Block 5(c)
to the company.
"We sold a 25 per cent inter-
est in four of our ten Barreir-
inhas Basin blocks in Brazil,
and in Trinidad and Tobago,
we acquired the remaining 25
per cent interest in Block 5(c)
in the Greater Dolphin Area,
which is an important long-
term supply source for our LNG
busines," he said in a May 1
The BG Group agreed to buy
Niko's 25 per cent interest in
the block for US$62 million.
Ironically, the BG Group started
out as a minority interest holder
in the block.
Canadian oil and gas com-
pany Niko Resources Ltd
announced on March 31 that it
had executed a definitive sale
and purchase agreement for
sale of its 25 per cent interest
in Block 5(c) to a subsidiary of
the BG Group, 75 per cent
interest owner and operator of
the block, for gross proceeds
of US$62 million.
Under the terms of the
agreement, a deposit for a por-
tion of the sales price was to
be paid to Niko in early Apri.
Closing of the transaction is
subject to the Government of
T&T, other conditions custom-
ary for transactions of this
nature, and closing adjust-
ments, Niko said.
Upon closing of the trans-
action, under the settlement
agreement entered into in
December 2013 with Diamond
Offshore, a specified portion
of the proceeds will be used to
reduce the company's out-
standing obligation to Dia-
In addition, under the terms
of the company's term loan
facilities agreement, $20 million
of the proceeds will be used by
the company to fully repay
"In November 2013, we
announced our restructuring
plans for the company and in
December, we closed on a com-
prehensive financing package.
The sale of our interest in
Block 5(c) is another important
step in our plans and we look
forward to further progress as
we move through the year,"
Niko president Jake Brace said.
In 2007, the BG Group signed
a farm-in agreement for Block
5(c), 94 kilometres off the east
coast of Trinidad.
BG Group took a 30 per cent
working interest in the produc-
tion sharing contract (PSC) and
assumed operatorship in 2009.
Also in that year, the BG
Group exercised its pre-emp-
tion rights under the Joint
Operating Agreement to
increase its stake in the block
to 75 per cent, which became
effective later that year.
Each of the three wells drilled
on Block 5(c) since 2007 have
encountered hydrocarbons and
has been successfully tested.
The first well, Victory-1, was
drilled 10 kilometres north-east
of the Dolphin platform.
The second well, Bounty-1,
targeted a separate prospect,
approximately four kilometres
away from the Victory-1 well.
Drilling and testing of the
third exploration well, Endeav-
our-1, was completed in 2009.
The well targeted the same
reservoir section as Bounty-1
but on a separate structure,
approximately nine kilometres
north-west of the Bounty-1
The BG Group has said an
appraisal drilling programme is
proposed to commence in 2014.
Finance Minister Larry
Howai says industrial rela-
tions problems caused the
Inland Revenue Division to
extend the deadline for filing
"The problem arose as a
result of the fact that the
recent industrial action caused the late mailings of
the tax returns and also the Board of Inland Revenue
(BIR's) Web site was not updated until last week
so individuals and businesses would not have been
able to download the returns," he said.
On Thursday, the Inland Revenue Division
announced an extension of the deadline for filing
final payments and tax returns from April 30 to
No penalties will be applicable but interestnor-
mally be due as a result of the late payment of
taxes will be waived once payment is made by June
30. Howai said this is not the first time the deadline
for filing tax returns has been extended.
"I am advised that it occurred in the past and
usually persons would be given an extra month to
comply but it has not occurred in the last three
years and would probably not have occurred except
for the industrial action arising from the Occupa-
tional Safety and Health (OSH) concerns expressed
by the Public Services Association (PSA)," he said.
"Cabinet has approved a sum of approximately
$1.5 billion to complete the Government Campus
buildings in downtown Port-of-Spain," said Howai.
Once this is completed in the next 12 months I
expect that the OSH problems being complained
of at the BIR will be a thing of the past."
BG Group chairman:
T&T's Block 5(c) key
to LNG business
Howai: Industrial problems
caused tax delays
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