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Tuesday, October 17 2017 @ 12:55 PM AST

If NEL reflects what's happening with the Trinidad & Tobago's economy



SOURCE: National Enterprises Ltd (NEL) annual report 2017 released August 8, 2017.


Looking at the big picture if NEL reflects what's happening in the Trinidad and Tobago economy, then T&T is still in a downtrend, but a small retracement is occurring. NEL is a publicly-listed state-owned holding company with no activity of its own, but major shareholdings in:

- National Flour Mills Company Limited (NFM);
- NGC NGL Company Limited (NGC NGL) ;
- NGC Trinidad and Tobago LNG Limited (NGC LNG);
- Telecommunications Services of Trinidad and Tobago Limited (TSTT);
- Trinidad Nitrogen Company Limited (Tringen);
- NEL Power Holdings Limited (NPHL); and
- Pan West Engineers and Constructors, LLC (Pan West).

OR TO PUT IT IN A CHART:



THE OTHER GOOD PURPOSE NEL SERVES - Atlantic LNG profit estimated at about $720 million in 2016.

The other good purpose NEL serves is to work out about how much profit the majority Royal Dutch Shell-owned Atlantic LNG makes. As the company is privately held and its output was said by one independent senator to rival the country's GDP, it is interesting to estimate how much money it makes, especially since it escapes all the oil and gas-related taxes of SPT etcetera.

NGC LNG owns 10% of Train 1 of Atlantic.
Atlantic has four trains of varying capacities and they are turned up and down/off at the operator's discretion, so one can only estimate.
NEL owns 37.84% of NGC LNG.

Aleem Khan estimates: "Now, the profit from NEL received from NGC LNG at the end of NEL's fiscal year on March 31, 2017 was $6.5 million, down from $18.9 million the year before, so one can estimate, Atlantic took a hard hit in profit after tax and made about only one third of what it's used to making. That said, if $6.5 million is about one third of 10% then one can more or less, very roughly estimate that Atlantic LNG should have made about $720 million in profit after tax."

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