Home' Trinidad and Tobago Guardian : July 13th 2014 Contents JULY 13 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG13
Plipdeco (Point Lisas Port Devel-
opment) remains the only
company involved in port
operations and the manage-
ment of an industrial estate
that is listed on the local stock
exchange. The unique nature of its operations
and the changes in its revenues and profitability
provide a good proxy for what is happening
in many parts of the broader economy.
A major intermediate term risk to the com-
pany s port operations is if the government
decides to construct a port and dry dock facility
at La Brea.
Perhaps there might be opportunities for
the Port of Port-of-Spain and some currently
developing industrial parks to become listed
at some point in the future?
Let us now turn to Plipdeco s results for its
2013 fiscal period.
Increase in asset values
Total assets advanced to $2.17 billion from
$1.92 billion as at December 2012. This increase
of 12.5 per cent was driven by the rise in the
value of investment properties, which moved
to $1.47 billion from $1.30 billion as at the
end of 2012; this represented an improvement
of almost 13 per cent.
The value of property, plant and equipment
rose from the 2012 level of $485.2 million to
$546.5 million as at last December; this showed
an increase of 12.6 per cent.
Net additions increased this value by $41.9
million. In addition, a further $51.7 million
was due to revaluations (before deferred taxes).
Disposals, adjustments and depreciation
reduced the overall gain by $32.3 million.
Cash at bank and on hand increased from
$50.9 million as at December 2012 to $55.9
million last December. The cash on hand and
at bank component declined from $17.4 million
as at the 2012 year-end to $14.6 million as at
December 2013. Conversely, and even with
lower returns, balances on short-term bank
deposits rose to $41.3 million from the previous
level of $33.5 million.
Total liabilities increased marginally to $358.1
million from the 2012 base of $349.6 million.
Total debt, inclusive of the floating rate
bond due 2012-2016, declined from $145.4
million as at year-end 2012 to $140 million
Both deferred income tax liabilities and trade
and other payables increased. The former
moved from $68.7 million as at December
2012 to $78.5 million last December. In the
case of the latter, this value rose to $45.2
million on December 31, 2013 from $39.9 mil-
lion as at the end of 2012.
Shareholders equity improved to $1.808
billion from the 2012 level of $1.575 billion.
Profit for the year boosted retained earnings
component by a total of $186.9 million while
dividends paid of $4.4 million lowered the net
The profit for the year was hugely and pos-
itively helped by the unrealised fair value gains
on investment properties of $169.6 million.
In addition, the re-measurement of the retire-
ment benefit obligation contributed $3.77 mil-
lion to the retained earnings element.
In a similar vein, the revaluation reserves
benefitted from gains on the revaluation of
lands, buildings and own site improvements;
in this case, the amount of the increase was
The book value of each share improved to
$45.62 as at last December from $39.75 as at
Revenues and profit
Revenues rose by 9.2 per cent to $264.3
million from 2012 s $242 million. Despite this
increase, direct costs held steady at $75.2 mil-
lion, which allowed Plipdeco to report a gross
profit improvement of 13.4 per cent. This
figure moved up to $189.21 million from the
$166.7 million reported for 2012.
Unrealised fair value gains on investment
properties increased by a multiple of more
than six times. The 2013 result of $169.6
million was far greater than the $27.5 million
reported for 2012.
Both administrative expenses and other
operating expenses rose appreciably. Admin-
istrative expenses increased by 7.5 per cent to
$86 million from $80 million previously. Other
operating expenses soared by almost twice
this pace, increasing by nearly 15 per cent to
$75.1 million last year from $65.4 million in
Among the significant cost increases was
repairs and maintenance, both on spares
utilised and on property, plant and equipment.
The former rose by $6.5 million or 51 per cent
to end 2013 at $19.2 million. In the case of
the latter, the increase of $3.9 million was
lower in dollar amount but greater in percent-
age terms; this change represented a rise of
65.2 per cent over the 2012 figure of $6 mil-
Among the items that declined were insur-
ance and legal and professional fees. Insurance
premiums moved down to $3.8 million from
$5.7 million in 2012.
Meanwhile, legal and professional fees of
$1.5 million were less than half of the 2012
figure of $3.1 million.
Investment income, at $5.4 million, was
marginally greater than the $5.3 million earned
in 2012. More significantly, finance costs, which
registered at $7.3 million, were $1.4 million
lower than the $8.7 million incurred in 2012.
These changes saw pre-tax profit of 2013
come in at $195.8 million, which compares
very favourably with the $45.5 million reported
After allowing for taxes of $8.9 million (2012:
$5.5 million), the net result for 2013 came in
at $186.9 million. This result was more than
4.6 times the $40 million reported for 2012.
When we exclude the fair value gains com-
ponent, the after tax profit was $17.4 million,
which was 39 per cent greater than the $12.5
million earned in 2012.
Excluding fair value gains, EPS improved
from $0.31 in 2012 to $0.44 last year.
The estate management division registered
$2.9 million higher revenues and $3.4 million
greater pre-tax profits. It is noteworthy that
both other expenses and finance costs showed
declines from their 2012 levels. There was no
indication if higher revenues were due to an
expansion in the number of tenants or increases
in the rates charged to current customers.
There was an almost $20 million increase
in port revenues over the 2012 period. In addi-
tion, both depreciation and net finance costs
declined. In contrast, other net expenses rose
by $15 million.
The operations of the port were positively
impacted by the 25 per cent increase in trans-
shipment cargo. On the negative side, the
throughput for general cargo was 14 per cent
lower than the 2012 figure. A major contributor
to this decline was the 58 per cent decrease
in exports, which was severely influenced by
reduced steel exports by Arcelor Mittal.
Notably, more than $44 million in other net
expenses, for both 2012 and 2013, was shown
under the "unallocated" columns. Does this
imply that Plipdeco has a very high level of
"head office" expenses?
First quarter 2014
Revenues for the first quarter ending in
March 2014 declined to $61.8 million from
$65.4 million in the comparative 2013 period.
In addition, both administrative and other
operating expenses rose. The former increased
by almost 30 per cent while the latter rose by
13.4 per cent.
The volumes of containerised cargo fell by
3.0 per cent. This comprised a 6.0 per cent
fall in transshipments, a 6.0 per cent decrease
in imports and a 2.0 per cent rise in exports.
On the other hand, general cargo operations
increased in volume by 7.0 per cent; however,
due mainly to changes in the composition of
the cargoes, the shipment values declined.
EPS, excluding fair value gains, contracted
to $0.08 from $0.26 reported in the 2013 peri-
Five years ago, in July 2009, Plipdeco s share
price was quoted at $8.10. Over the period
June 1, 2009 to July 31, 2009, a nominal 200
shares traded with no price change being
At the end of January 2014, the price was
$3.45. Since then, it has shown some strength,
closing recently at $4.15. At that price, the
2013 dividend of $0.15 gives new investors a
yield of 3.61 per cent.
The company continues to invest to improve
its operational efficiencies. Its expansion plans
are proceeding on the assumption that the
government will eventually build a port at La
It is confident that Point Lisas will still be
able to offer valued added services, such as,
bunkering and a logistics zone.
Plipdeco invests for the future
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