In T&T: Tringen profits rise by $31.2m

1 May 2012


Despite “production shortfall of three per cent,” Tringen was more profitable (4% increase) in 2011.

THE Trinidad Nitrogen Co Ltd (Tringen) has realised profits before tax of $870.7 million at December 31, 2011.

This is a four per cent—or $31.2 million—increase over 2010 ($839.5 million), according to its audited financial statements for 2011.

The company was affected, however, by curtailments in its natural gas supply, resulting in a production shortfall of three per cent, equivalent to about $35 million loss in net income before taxes.

Sales revenue in 2011 was $466 million, a 21 per cent increase over the previous year due to higher ammonia prices.

The company is part of National Enterprises Ltd (NEL), a Government-owned investment holding company that holds its shareholding in selected State enterprises and facilitates a public offering on the Trinidad and Tobago Stock Exchange.

Tringen is jointly owned by the Government (51 per cent) and Yara Caribbean (2002) Ltd (49 per cent), and is one of the largest producers of ammonia in the world.

A dividend of $480 million was declared for 2011, with 51 per cent going to the Government.

The company also announced that this year it will embark upon an Energy Efficiency Investment Project on the Tringen 1 plant in Savonetta at an estimated cost of $320 million. The project is expected to be financed out of cash flow generated through operations.

The company added that while the outlook for 2012 appears favourable, the international ammonia market has proved to be very volatile given global and political uncertainties.

In his report, chairman Carl Chatoor said during the period 2009-2011, Tringen earned $1 billion in foreign exchange.

It also contributed an average of 45 per cent to NEL’s share of profits and an average of 50 per cent in NEL’s dividends paid.

The company’s direct payments included corporation taxes, Green Fund Levy, property taxes and PAYE of an average of $283 million annually. Indirect payments included natural gas payments to NGC, WASA, TTEC and other local contractors of approximately $1.2 billion annually.

The company provided direct employment for 200 employees, with about 20 trainees annually.

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