Following 1Q15, Trinidad Cement Limited (TCL) has refinanced its restructured debt. In May 2015, the company negotiated a maximum discount of US$194.2 million with its creditors, a figure which is reflected in its 2Q15 results, as well as refinanced the restructured debt agreement that concluded in 1Q15. Proceeds came from a Bridge Loan of US$245 million and US$15.8 million of internal cash.
Sales and total revenue
Due to an 8% increase in cement sales, TCL’s revenue in 2Q15 was US$572.9 million – a total increase of 11% compared to US$514.9 million in 1Q15. The company totals a sum of US$1.1 billion for 2015, so far.
Revenue for 2Q15 was US$12.9 million – 2% higher than 2Q14 since 1H15 net profit was US$335.2 million compared to US$32 million for 1H14. This is primarily due to price increases as well as higher clinker sales.
Moreover, TCL’s finance cost was US$10.4 million lower due to the reduced interest rates on the Bridge Loan and a reduction of the principal loan balance from US$292.2 million to US$245 million.
Since the US$245 million Bridge Loan has a maturity tenor of nine months, the full amount of this liability is reflected as current liabilities in the statement of financial position. As a consequence, the working capital has moved from a surplus of $0.6 billion on 31 March 2015 to a deficit of $0.8 billion on 30 June 2015.
Net cash balance at the end of 2Q15 was US$529.7 million whereas it was US$77.1 million at 2Q14.
Looking to the future
TCL is currently in the process of refinancing its Bridge Loan with a longer-term, syndicated loan facility. This is expected to conclude in 3Q15. Once this is concluded, the group will be able to reclassify loan balances to long-term liabilities, which will result in an improved working capital position.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcement.com/the-americas/21072015/trinidad-cement-limited-releases-2q15-financial-report-299/