Significant improvement in financial performance for Trinidad Cement


Updated Tue, 04 Mar 2014 00:00:00 GMT

Trinidad Cement Ltd has released its Consolidated Audited Financial Report for the year ended 31 December 2013.

2013 financial results
For the year 2013, the company recorded a notable improvement in its financial performance, with EBITDA increasing by US$268.9 million (174% y/y) to US$423.4 million, reflecting a margin of 21.8% compared with the previous year margin of 9.6%. The improvement was attributed to increases in key operating metrics with domestic cement sales volumes increasing by 13% y/y (especially in Trinidad and Jamaica), a 22% y/y increase in cement export volumes and a 15% y/y increase in clinker production. The higher sales volumes resulted in revenue increasing by US$325 million (20% y/y) against 2012. For the year 2013, profit after tax totalled US$67.3 million, compared with a loss after tax of US$388.2 million in 2012. The results for 2013 benefitted from lower depreciation, impairment charges, finance costs and a deferred tax credit compared with 2012.

Trinidad Cement Ltd’s financial position and liquidity continued to strengthen over 2013, with all loan payments being made and financial ratio covenants being achieved in accordance with the debt restructuring agreement.

4Q13 financial results
In 4Q13 (ended 31 December 2013), revenue increased by US$50.5 million (13% y/y) compared to 4Q12. EBITDA improved by US$41.3 million (116% y/y) against the same period a year earlier. However, 4Q13 was negatively impacted by lower sales volumes compared to the average of the prior three quarters, as well as production challenges at the company’s Barbados plant.

Critical repairs at the company’s Barbados plant have been completed. Demand is as expected and exports are being made to buoyant markets such as Guyana.
Demand in Jamaica during January – February 2014 was slower than in the same period in 2013 but growth is forecast in 2014, which is set to benefit the construction sector. The company’s plant in Jamaica will fulfill the remainder of its 100 000 t Venezuela supply contract and negotiations have commenced for a new contract to supply 240 000 t over a period of 12 months.
The market in Trinidad and Tobago remained buoyant in the first two months of 2014 and this is expected to continue throughout the coming year, significantly enhancing the company’s cement and concrete businesses.