Junior market listed Paramount Trading will be heading back to the stock market soon to raise additional capital to help fund the US$4-million 50/50 joint venture lubricant manufacturing operation being done jointly with overseas-based Allegheny Petroleum, IC Insider confirmed with Hugh Graham, Chief executive of the company.
At the end of August the company had cash and investments of $165 million well below the cash injection that would be needed for their share of the capital.
“The advisory team is currently working out the capital needs to determine the amount we will go to the market for,” Hugh Graham stated in an interview with IC Insider. Graham stated, “manufacturing the lubricants locally provides higher margins as value added will be better than with imports, will create a better future for the operation and will allow for export of the finished product.”
Graham could not give the start-up date for the venture which is to be housed on property owned by Paramount as they await various approval from governmental departments.
In response to the reason why the company pumped up the dividend to 39 cents to be paid in November from 15.1 cents in 2014, Graham said “the board considered the dividend payment versus the profit realised and felt that investors should get a good return on their investment.” According the Graham, “the payment is $60 million which still left $90 million to add to accumulated profit”
While there might be a lot of truth in that statement, the plan for a rights issue could not have escaped the board with the low price the stock has been trading.
The 2015 payment represents 41 percent of profit and equates to a dividend yield of 14.89 percent based on the price of $2.62 at the start of the year. For the quarter ending August earnings grew 27 percent to 28 cent per share versus 22 cents in the same period in 2014.
Paramount eyeing new stock offering
Profit drops at Trinidad’s NGL
T&TNGL traded at $21.51 on Thursday
The profit generated in the third quarter although sharply down from the similar period in 2014, is well up on the operating profit of $28 million for the March quarter but down on the $53 million in the June quarter of 2015. The decline is reflective of the fall in world energy prices.
The results flowed from the company’s share in a liquid gas joint venture of $46 million in the quarter, a fall from $129 million in the 2014 period and $134 million versus $277 million for the nine months in 2014. There were hardly any expenses incurred in operating the company.
Earnings per share for the September quarter is 28 cents and 85 cents for the nine months and should be around $1.15 for the full year.
NGL was incorporated in Trinidad and Tobago in September 2013. The The company does not do the processing on its own but acts as an investment holding company following acquisition of 39% of the share capital of Phoenix Park Gas Processors that is the largest producer of natural gas liquids in Trinidad and Tobago with its operation commencing in 1991.
The company will be paying a special dividend of 50 cents per share on December 15. A total of 75.8 million out of 116,100,000 issued shares, were offered to the public to raise $1.5 billion for the government of Trinidad and Tobago in September and is listed on the Trinidad and Tobago Stock Exchange and last sold at $21.51 at a PE of 19.
Dolphin Cove’s founder rakes in 434% since listing
Stafford Burrowes and his wife
Dolphin Cove has total outstanding shares totaling 392.4 million. Burrowes and persons connected with him will continue to own in excess of 10 per cent of the company.
Eduardo Albor, the chief executive officer of the Dolphin Discovery Group in commenting on the transaction said: “ Burrowes and the Dolphin Cove team have built a world class attraction in Jamaica and I am delighted that he has chosen to partner with the Dolphin Discovery Group to take the venture forward.”
Albor added that the company does not plan to delist the stock from the Stock Exchange but will nevertheless comply with the rule of the Jamaica Stocks Exchange to make a compulsory offer for the minority shares.
Dolphin Cove traded at an all-time high on Wednesday
Stafford Burrowes said: “I am familiar with and have great respect for the operations of Dolphin Discovery in Latin America and the Caribbean, and now in the US and Europe. Dolphin Discovery, like Dolphin Cove, has a very professional approach to the care of dolphins and other species and that encouraged us to do this partnership with them. It gives me great pleasure to know that Dolphin Cove will be part of such a large and successful group of companies. I intend to remain with Dolphin Cove as chairman and look forward to combining my knowledge and expertise with those brought to the table by Dolphin Discovery. I am sure that together we can continue the growth of Dolphin Cove in Jamaica and the Caribbean.”
Burrowes added: ” It is my understanding that as a result of the sale of some of my shares, Dolphin Discovery is required to make a mandatory offer to all shareholders. Regardless of the outcome of the mandatory offer, I intend to remain a significant shareholder of Dolphin Cove and in that capacity I hope to share in the benefits resulting to the Company from its association with the Dolphin Discovery Group.”
Dolphin Cove Jamaica founded 15 years ago by Mr. and Mrs Burrowes in Jamaica offers dolphin attractions across the island and the region.
Dolphin Cove reported a 4 percent increase in profit after tax for the nine months to September, of $412 million over 2014 and a 17 percent increase in the September quarter to $128 million over the similar quarter last year. Cash flow from operations increased by 26 percent to $486 million, compared to $385 million for the similar period to September 2014.
Earnings per stock unit for the nine months amounts to $1.05 and 32.6 cents for the quarter and could end around $1.40 for the year, for the full 2014 year, earnings was $1.12.
Guardian Media’s Q3 profit up 134%
Guardian Media is one of two media stocks in T&T to have the greatest benefits from the General elections.
For the quarter, profit after tax more than doubled to $18 million from $7.7 million in 2014, from revenues that climbed 35 percent, to $76 for the quarter and 13 percent for the nine months, to $173 million. Earnings per share, increased by 23 cents, from 48 cents to 71 cents, with the full 2014 year, being 85 cents.
“These results were from political advertising earned from the recently concluded general elections, and the strength of our brands, based on progressive investments in talent, content and technology. I am also pleased to report that during the quarter GML acquired 100% of the issued shares of iRadio Inc., a company that is registered and operates in the Republic of Guyana. This acquisition now expands our TBC radio network to 7 stations and is in alignment with the strategic objectives of our Company”, Grenfell Kissoon, Chairman of the company stated.
Cash generated from operations amounts to $51 million for the quarter and is up from $28 million in the similar period in 2014, the flows to date, exceed the $43 million generated during 2014.
The company is a part of the Trinidad based Ansa McAl, the shares listed on the Trinidad & Tobago Stock Exchange and last traded at $19.77 with a PE ratio of 18 times 2015 earnings.
Sale and profit down at Unilever
Unilever products
For the third quarter revenues fell 3.5 percent to TT$139 million from $144 million last year, which is better than the 5 percent fall suffered in the second quarter. The company’s revenues have been recovering, from a 10 percent fall for the six months revenues are now off by 8 percent for the nine months, to reach $393 million, down from $427 million in 2014.
Profit fell from $13.9 million to $10.45 million for the third quarter and from $45 million for the 2014 nine months period to $29 million for 2015. Profit before taxation declined even more than the after tax profit with a fall from $19.2 million down to $13.9 million or 27.6 percent. Earnings per share amounts to 40 cents in the quarter and $1.10 for the nine months. In 2014 Unilever earned $2.52 per share.
Unilever spent 13.8 percent more on selling and distribution this contrast with a 3 percent increase for the nine months which all the increase coming in the third quarter moving the amounts spent to $93.3 million. Administrative cost fell $3 million in the last quarter to $5.8 million and is down nearly $5 million in the nine months to $21 million.
The company had blamed the first quarter results as being negatively affected by computer glitzes from the software change over late in 2014. With the release of second quarter results the company had stated that “Looking forward we expect the challenges of the regional economies to impact our growth prospects. In Trinidad and Tobago the uncertainty of the upcoming elections continues to affect the business environment. Regionally, recovery continues to be slow due to the depreciation of local currencies and shortage of US dollars across markets, which is cause for concern. While the recovery from the first half of the year remains a challenge, Unilever Caribbean is optimistic that the investment in our new IT systems and infrastructure will build the foundation for future growth. However, at this time the outlook for the rest of the year remains moderate” Pablo Garrido, Chairman of the company reported to shareholders.
The company’s stock traded on the Trinidad & Tobago Stock Exchange at $67.54.
Liberty Global strikes C&WC Plc deal
Cable & Wireless HQ
John Malone’s Liberty Global Plc agreed to buy Cable & Wireless Communications Plc in a cash-and-stock transaction valued at 3.5 billion pounds ($5.3 billion). Including the Special Dividend, the transaction values CWC at approximately $8.2 billion, including debt CWC Plc said in a release on the deal. The transaction is expected to complete by the calendar second quarter of 2016.
“The deal represents a multiple of 10.7 times Cable & Wireless Communications’ adjusted annual earnings before interest, depreciation, taxes and amortization, (EBITDA) after taking into consideration cost synergies, according to a statement. Cable & Wireless’ shareholders will get a special 3 pence a share dividend at the deal’s close,” Bloomberg Business reported.
The report did not indicate what is planned with the Jamaican company Cable & Wireless Jamaica with nearly 20 percent minority ownership. IC Insider.com Has earlier suggested that the local operation could be valued around $3 using (EBITDA) measure.
Eppley’s stock scarce & undervalued
Eppley’s profit after tax increased 5 percent for the first nine months of the year to $41.7 million compared to $39.7 million in 2014. For the September quarter, profit jumped sharply by 91 percent to $19.3 million versus $10 million in 2014.
Earnings per share of $52.47 was achieved for the nine months and $24.17 for the quarter. A dividend of $9 per share will be paid on November 30 to ordinary shareholders on record at November 20.
Revenues grew 93 percent for the quarter to $63 million and 60 percent for the nine months period, to $171 million. Net interest income increased from 39.56 percent in the nine months to 43.9 percent in the quarter. Operating expenses climbed 16 percent for the quarter and 15 percent for the nine months.
As of September, Eppley had a $1.38 billion portfolio consisting mainly of loans, leases and receivables. The average income yield of the portfolio was 14 percent, the company stated.
Equity capital at the end of the quarter stood at $341 million and borrowing at $1 billion with average cost of debt being 10 percent. We ended the quarter with $237 million of cash and short-term investments, the company also stated.
Eppley provides loan and insurance premium financing. At the end of the quarter, the stock that is listed on the junior market of the Jamaica Stock Exchange last traded at $380 much lower than the net asset value was $429 per share.
Revenue growth pushes down C&W loss
Cable & Wireless HQ
The company posted losses of $485 million after exceptional expenses in the September quarter, or 11 percent less than the $548 million loss for the six months in 2014.
EBITDA earnings grew to $1.2 billion compared to $971 million a year ago and for the half year $2.58 billion versus $1.78 billion, an increase of 45 percent.
“Each line of business showed improved results leading to growth in total revenues and EBITDA. Our mobile business was again the leading performer with our pre-paid subscriber base growing by 23 percent and our post-paid subscriber base growing by 6 percent when compared to the prior year first half,” stated Garfield Sinclair who heads C&WJ, in the financial report.
During the quarter, revenues grew 9 percent to $5.63 billion. This growth was filliped by mobile subscriber base and revenues up 22 percent and 16 percent respectively; and broadband subscribers and revenue up 8 percent and 11 percent respectively. Revenues for the half year grew 10 percent to $11 billion as revenues for the September quarter exceeded that of the June quarter by $179 million or 3.3 percent.
Interest cost declined in the quarter to $934 million from $1 billion last year and should fall in the coming quarters as the interest rates reset downwards in November, to 7.2 percent from 7.787 percent with the fall in local Treasury bill rates. For the half-year interest cost amounts $2 billion. Staff costs are down by $300 million in the six months period from that of 2014 to be at $1.246 billion but out payments and direct cost rose $226 million with the September quarter by $149 million over the June quarter.
The company generated operating cash flow of $520 million compared with negative cash flows of $133 million in six months to September 2014.
The financials does not show any indication of a merger between the local operations of Flow and C&W but the latter wrote large amounts of assets and made staff redundant but no mention is made in the report as to how the two entities will be operating going forward. There are questions to be answered here.
The company’s shares are listed on the Jamaica Stock Exchange last traded at $1.45.
Profit up 60% at Jamaican Teas
Profit at Jamaican Teas for the 2015 fiscal year to September rose 60 percent to $81 Million from a 17 percent increase in revenues of $1.3 billion and from a 32 percent rise in exports to $370 Million.
Export sales exceeded domestic sales from the manufacturing arm that ended at $363 million for a 6 percent increase for the year.
In the final quarter, net profit increased by 520 percent to $12 million from a loss in 2014 and $15.6 million after other comprehensive income. For the full year total comprehensive income amounted to $97 million compared to $46 million in 2014. The company incurred some one-off costs that are not likely to recur in 2016 and should help in contributing to increased profit.
The group operates two supermarkets, one in Kingston and one in Savanna-la-Mar with sales of $520 million for the year compared to $491 Million in 2014. The jointly owned supermarket in Montego have been challenging in a tight but competitive Montego Bay economy.
June marks the end of the tax free status of Jamaican Teas. Accordingly, the company became subject to income tax, effectively at 12.5 percent commencing in the fourth quarter of the 2015 financial year and continuing for another 4 years and nine months.
The company said they completed construction of 29 two bedroom units along with infrastructure work during the fiscal year, with all units being sold, with the majority of sales to be booked in the new fiscal year. The company expects that the net proceeds of sales will be used to pay down loans, pay a dividend to shareholders and finance Phase II of the development of which there are several commitments for.
Outlook|The company is expecting another year of good performance in 2016, in line with this, the 2016 financial year has started off on a favourable note with strong interest shown in units in phase 2 of real estate development. The expected completion of the sale of all units in phase 1 are of real estate development, good export sale orders so far. The electioneering ahead of the general elections could bring increased consumer spending and positive development in the tourism sector with the expectation of a strong tourist arrivals in 2016 could see the company benefitting. Jamaican Teas also holds a portfolio of equities that has increased in value with the 2015 results shows with an increased value of $16 million, that amount would have grown with the growth in the Jamaican Stock market since the year end.
The company is primarily involved in the processing of local teas and packaging along with imported teas and for the Jamaican and overseas markets, operates supermarkets, and the rental and development of realty. The company’s shares are listed on the Jamaica Stock Exchange, last traded at $3.85.
Christmas treat for Carreras owners
Shareholders of Carreras are in for a nice Christmas treat with a big distribution in December. The company announced the payment of an interim dividend of $1.40 per share payable on December 10, for shareholders on record as at November 27, 2015 and a special capital cash distribution of $1.94 per share payable on December 17, to shareholders on record as at November 27, 2015.
The ex-dividend date for both payments is November 25, 2015. The payment in December will bring the amounts paid in 2015 to $8.74, with a dividend yield of 24 percent, based on the stock price at the start of the year. In addition, the stock has gained 54 percent so far this year, for a total return of 78 percent. Going forward investors can expect to receive around $6 per share as most of if not all of the capital distributions are over for now with the full amount that funded capital distributions were due from the government and the amount is now fully collected.
Prior to these proposed payments, dividends were paid in September, amounting to $1.20 per share along with and interim special capital cash distribution of $0.60 per share. An interim dividend of $2 per share was pay on June 25 and an interim dividend of $1.60 per share was paid on March 12.
Interim results to September, show revenues and profit rising in the quarter, with revenues climbing to 15 percent for the quarter to $3.06 billion and 8 percent for the half year to $5.68 billion. Profit rose 24 percent for the quarter to $762 million and 19 percent for the half year to $1.39 billion. Earnings per share amounts to $1.57 for the quarter and $2.85 for the half year. The company is on it way to just about exceed $6 per share for the fiscal year.
The stock is listed on the Jamaica Stock Exchange and last traded at $56.