Caribbean Cement Company Ltd., the Jamaican subsidiary of Trinidad Cement Ltd., had a 28 percent increase in revenue for the first half of 2014, reported Trinidad and Tobago Guardian. Revenue amounted to $64.44 million, up from $50.44 million reported the prior year.
Results were “impacted by general inflationary increases driven by the depreciating currency, an increase in debt servicing and the cost of the planned annual shutdown of the clinker manufacturing line for the necessary relining of the kiln, during which time there was a significant draw down of clinker inventory resulting in a positive cash flow, but a negative operating result,” said Caribbean Cement. “There is no major shut down of the kiln planned for the rest of 2014 when clinker inventory will be restocked and improved operating results are expected.”
Earnings before interest, tax, depreciation and amortization (EBITDA) were $2.69 million in the first half of the year, versus $8.97 million for the same period in 2013. Depreciation closed at $1.49 million, a 0.43 percent decline year-over-year. Operating profit totaled $1.20 million for the period, while for the year prior the company reported a total of $7.47 million.
Interest expense amounted to $1.21 million for the period, versus $2.48 million for same period in 2013. Additionally, the company reported a roughly $432,000 loss on currency exchange, an improvement compared to the loss of $6.22 million recorded last year. Loss before taxation totaled $433,401, a decline of approximately 64 percent relative to the loss of $1.21 million last year. Net loss closed at $472,833.
Mayberry Investments said the company highlighted that “in comparing the results for 2014 with those for 2013 it is necessary to recognize the impact of the debt restructuring exercise that was completed in June 2013. In this regard, the results for 2013 include a $5.25 million reversal of previously accrued withholding taxes, resulting in a much improved operating profit for the first six months of 2013.”