NP declares $59m after-tax profitStatement by Lawford Dupres
Chairman of the Board of Directors
for fiscal year ending March 31, 2008
THE NP Group recorded a Profit after Tax of $59M for the year ended March 31, 2008, an increase of $64.3M when compared to the prior year’s restated loss of ($5.3M).
The excellent performance of the Group was largely attributed to steady growth in fuel sales, driven primarily by the vibrant Retail, Oil and Gas and Aviation markets; contributions from the LPG and Lubricants markets; an expanded distribution infrastructure and larger fuel storage at service stations which improved operating efficiencies and reduced transportation costs; and higher inventory values from rising oil prices which helped to cushion operating expenses.
The Marine Division was discontinued within the financial year as the Company’s aged vessels were sold.
The Subsidiaries reported an overall loss of ($0.5M), which represented a Loss after Tax of ($2.9M) for National Agro Chemicals Ltd; ($0.3M) for Natstar Manufacturing Company Ltd, and a Profit after Tax of $2.8M for Natpet Investments Company Ltd. The promising results of Natpet Investments Company Ltd were achieved through increased sales of LPG and the reduction in product supply costs.
There was an enhanced focus on HS&E issues as the operations involving the testing and refurbishment of cylinders became fully functional as the Company strives to achieve recertification of all LPG cylinders in accordance with national standards.
Market leader
In keeping with the Group’s strategic objective to modernise its assets, three (3) service station sites were fully upgraded within the year at St Augustine, Cocoyea and Beetham Highway while increased fuel storage was completed at six (6) rural sites with an additional four (4) nearing completion in Trinidad. At the Crown Point terminal in Tobago, fuel storage was increased by an additional 24,000 barrels during the year.
In the ensuing year, NP will continue its plans to ensure it remains the market leader in the supply and distribution of fuels and lubricants throughout the nation. Further upgrades to storage facilities and infrastructure in the service station network will be achieved and a major drive to establish new fast-fill CNG facilities inclusive of dedicated sites will be initiated. Major improvement to LPG bulk storage facilities, testing and refurbishing of cylinders and a crushing plant for the disposal of old cylinders will be established in Tobago, while the modernisation of the Lube Oil Blending Plant at Sea Lots will begin with the construction of up-to-date warehousing facilities.
Customers at service stations throughout the NP network will be part of a new and improved experience as modern electronic dispensing units will facilitate payment at the pump by those wishing to use either debit or credit cards. Full and self-service options will also continue to be available to those customers who prefer these services.
The Board is pleased with the performance of the Group, achieved largely through the dedication and commitment of its Management and Staff, and is confident that as we continue to increase our team’s efforts NP will attain the overall objective of adding value to all its stakeholders, and particularly, the motoring public of Trinidad and Tobago.
Lawford Duprés
Chairman
September 26, 2008
