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Ingrid Lashley

National Enterprises Ltd (NEL)has recorded a decline in of 685 per cent in Total Comprehensive Income for the six month period ended September 30, 2020 and as a result recorded a $107 million loss.

Company Chairman Ingrid Lashley noted in the financial statements: “As loss of $107 million for the fiscal year to date compared to profit of $18.4 million for the comparative period last year, is reflective of the movement in fair value this year compared to relative stability in the previous year.”

She noted that it also indicates a similar trajectory for the results of this fiscal year as the recovery of commodity prices is extended.

As required by its mandate as an investment management company, and in light of the impact of the COVID-19 pandemic on the operations of some of its investee companies, Lashley disclosed that the Board of Directors of NEL updated the valuation of the respective companies as at September 30, 2020, to determine any significant movement in fair market value.

She indicated that as at the second quarter of fiscal year 2020, NEL’s earnings continue to be impacted by the decline in the performance of its investee companies, specifically a decline in the fair value of Telecommunications Services of T&T (TSTT) and some of its energy portfolio companies, NGC NGL and PanWest.

Lashley disclosed that the losses of these companies were partially offset by gains in National Flour Mills Ltd (NFM) and NEL Power Holdings (NPHL).

She continued: “We expect this trend to continue at least through to the end of third quarter 2021, when upward movement in commodity prices and improved performance from TSTT is projected to take effect. “

Lashley also called the time before the company’ recovery as a “period of patient Rebirth”. She indicated that during this time, it shall continue to prudently manage its investment holdings, protecting its cash flow positions while diligently working alongside its portfolio investee companies to ensure that NEL can realize gains through increased productivity and innovation in the shortest time possible.

The NEL Chairman said that the company’s commitment to value is unwavering.