Home' Trinidad and Tobago Guardian : July 25th 2014 Contents A19
• Twitter: @GuardianTT • Web: guardian.co.tt
The price of oil fell near US$102 a
barrel yesterday, erasing gains from
the day before.
Benchmark US crude for September
delivery dropped US$1.05 to
US$102.07 a barrel on the New York
Mercantile Exchange. On Wednesday,
the Nymex contract gained 73 cents
after the Energy Department reported
a far larger drop in US crude
inventories than what analysts had
Brent crude for September delivery,
a benchmark for international oils, fell
96 cents to US$107.07 on the ICE
Futures exchange in London.
The price of oil has stayed above
US$100 a barrel after a civilian jetliner
was shot out of the sky last week
over a part of eastern Ukraine
controlled by pro-Russian separatists
and as Israel's invasion of the Gaza
Strip added to risks of instability in
the Middle East.
TSTT acting CEO George Hill said the
majority state-owned telecommunications
provider expects to make a profit in the finan-
cial year ending March 31, 2015, as the com-
pany completes the second year of a five-
year strategic plan.
Speaking to senior business journalists yes-
terday at a breakfast meeting, Hill said TSTT s
profits for its first quarter (April 1 to June 30)
were in accordance with its year two projec-
While he declined to outline what specifically
the profit estimate for the current financial
year was, he said that it would be in excess
of $100 million.
TSTT recorded a net loss of $506 million
for the year ended March 31, 2014, with
National Enterprises Ltd, in which the Gov-
ernment s 51 per cent stake in TSTT is vested,
taking a $226 million hit to its bottom line.
Yesterday, NEL chairman Kenny Lue Chee
Lip, in a statement accompanying the com-
pany s consolidated financial statement, said
NEL experienced a 60.7 per cent reduction
in its profitability as its net profit for the 2012-
2013 financial year declined to $201 million
from $511 million the year before.
According to the NEL chairman, TSTT s
loss of $506 million "included a provision
for reorganisation costs of $694.6 million,
which is expected to be a non-recurring pro-
"TSTT has embarked on an agressive five-
year strategic plan, of which 2014 was the
first year and included a significant Voluntary
Separation of Employees plan."
Lue Chee Lip said in his chairman s state-
ment that NEL was "cautiously optimistic
that this plan will revert TSTT to a profitable
position from financial year 2015 onwards and
NEL will see a return of our dividends from
Hill said TSTT expects to roll out LTE, the
next stage in mobile broadband, within the
next 12 months.
He also said the possibility of British firm
Cable & Wireless, which owns 49 per cent of
TSTT, being granted the third mobile licence
was a shareholder issue and not one for the
executive management of the company.
Chairman of the Mitsubishi company
Yurihiko Kojima, among the Japanese
Prime Minister s delegation visiting T&T
this weekend, will be discussing with Gov-
ernment its US$850 million petrochemical
investment in T&T.
Final decision on this is expected by year
end, Foreign Affairs Minister WInston Dook-
eran added at yesterday s weekly Government
He outlined plans for Japanese PM Shinzo
Abe s visit which takes place over July 27 to
28 and includes a Japan-Caricom summit
Dookeran said most of the Caricom leaders
will be here this weekend for the summit.
Abe s visit is part of a Latin American
tour and will be the first time a Japanese
leader will visit the English-speaking
Caribbean and T&T. The visit is in the con-
text of the T&T/ Japan s diplomatic relations
and also marks Caricom/Japan Friendship
Year and the 20th anniversary of the Cari-
com-Japan convention on bilateral relations.
Dookeran said Kojima will be among a
large contingent of private sector officials
accompanying Abe. He added Kojima will
also be accompanied by 17 officials who will
hold talks with government on investment.
Dookeran said bilateral discussions include
examining the possibility of having a major
investment from Mitsubishi, one of the
leading Japanese companies in the field of
petrochemicals. In March 2013, Government
entered into a project development agree-
ment with the Mitsubishi Corporation and
local partner Massy Holdings Limited, for
a Methanol to Dimethyl Ether (DME) Plant.
He said the company has over the last
18 months been examining the feasibility of
establishing a major investment in La Brea
to expand on T&T s petrochemical capa-
"In this respect, discussions will continue,
but don t expect a final decision on this
until perhaps the end of the year," he added.
The petrochemical plant is expected to
attract more than $850 million US dollars
in foreign direct investment, provide 3,000
jobs during construction and 180 permanent
jobs. The project will also act as a catalyst
for industrial development of the south-
western peninsula, and has potential to
reduce the subsidy on diesel fuel.
Also to be discussed during the upcoming
Japanese visit is technical co-operation in
science and technology, fisheries and water
Much technical talk had already taken
place on the issue in the last year and will
be brought to the fore for final consider-
To be discussed also, will be trade between
the global south and the world economy
with new guidlelines to facilitate successful
integration of this.
Oil falls on worries about US gasoline demand
Mitsubishi chairman to discuss
US$850m T&T investment
Links Archive July 24th 2014 July 26th 2014 Navigation Previous Page Next Page