The chairman of National Enterprises Ltd Ingrid Lashley has expressed confidence that the share price of NEL that has plummeted over the years, will recover in the not too distant future.
Responding to questions at the companies Annual General Meeting (AGM) Lashley said: “Our due diligence, our active role in the investee companies that form a part of our portfolio, will determine the NEL’s performance going forward and inevitably result in improvement in our share price.”
NEL’s share price as of Monday February 6, 2017 stood at $10.87 per share, as of yesterday, it had plummeted to $3.90 per share.
Lashley added that share price is determined by the company’s performance, market confidence in the performance of the company going forward and the long term view of both NEL and the economic environment in which it operates.
She continued to note that the commodity prices are affecting NEL’S energy sector companies and TSTT is “coming to grips with its new corporate restructuring.”
According to Lashley: “We anticipate that in the medium to long term our share price would recover going forward.”
Lashley also highlighted the progress made by other investee companies. Responding to a question about the role and future of Ag. CEO Lisa Agard, Lashley said that NEL is represented on the board of TSTT and as shareholder, it has an interest, with others, in the determination of governance decisions taken at TSTT.
She added: “We are aware, by advice of TSTT, that Ms Agard was proposed to act and we have not been told by the board of TSTT as to the next step in the appointment of a permanent position or a permanent appointment of Ms Agard.”
Nonetheless, Lashley disclosed that it has been brought to her attention that Agard “has hit the ground running based on her history with that company and its wholly owned subsidiary, Amplia.”
The Chairman added that NEL will work with TSTT, to ensure the improved timeliness of its financial results and the other issues that form part of the deliberations to its representation on the board level.
Meanwhile, Lashley said, like all companies in the energy sector, Trinigen’s business has been impacted by the decline in international commodity prices. She said that Tringen continues to negotiate its gas prices with NGC “and that is proceeding positively.”
The Chairman noted that while the company intends to diversify into growth industries, it is not in a position to specifically identify into which areas or entities NEL would invest for diversification at this time.
Lashley noted that this was particularly so in light of COVID-19’s impact on the economy. She added that the primary mandate of the NEL, new general manager, Charles Maynard is to reassess the company’s environment with a view to extend or delete aspects of its portfolio.
This aspect of Maynard’s role and function, according to Lashley, feeds directly into maximizing shareholder returns in the medium to longterm.