Millions of dollars in costs, most linked to its revamped Barbados-based Arawak Cement Company Limited (ACCL) subsidiary, have resulted in newly-reported financial losses at Trinidad Cement Limited (TCL).
This is revealed in the director’s statement from chairman David Inglefield and managing director Francisco Aguilera Mendoza as part of TCL’s condensed consolidated unaudited interim financial report for the six months ended June 30.
They said the group reported a net loss of $3.5 million for the second quarter, compared to net income of $29 million in quarter two 2024.
This was “largely due” to a $4.7 million impairment of fixed assets in Barbados following the business model change, and $5.3 million in severance and restructuring costs in Barbados, and other operations across the group.
The chairman and managing director noted that ACCL “successfully transitioned from clinker grinding to cement distribution”.
“Under this new operating model, Arawak will continue serving the Barbados market with a reliable and consistent supply of cement manufactured within CARICOM,” they said.
“This change in the operation comes along with a new focus on maximising Arawak’s asset value through development of our real estate and other initiatives.”
TCL’s financial report stated that during the second quarter the Trinidad and Tobago-based group achieved consolidated revenue of $182.3 million, marking a 1.7 per cent year-over-year (YoY) increase”.
“This growth was driven by strong sales volumes in Guyana and favourable pricing in Jamaica and Trinidad and Tobago, which helped offset weaker domestic volumes in Trinidad and Tobago and increases in input costs,” Inglefield and Mendoza reported.
Operating earnings before other expenses, other income and credits fell 62 per cent YoY to $17.1 million, primarily due to a planned maintenance shutdown at the Jamaican plant and increased cement imports to support both the maintenance and the plant’s expansion project in Jamaica.
The two officials said that in the second quarter, the group’s operating cash flow from operating activities was $47.8 million, of which, $32.5 million was invested in capital expenditures, with significant allocations to maintenance and strategic projects in Jamaica and Trinidad and Tobago.
On a year-to-date basis, the TCL group’s consolidated revenue reached $354 million, up five per cent YoY, reflecting sustained volume and pricing strength in key markets, they added.
Further, TCL’s operating earnings before other expenses and other income and credits declined 28 per cent YoY to $60 million, impacted by the same factors affecting quarter two.
Net finance costs fell 34 per cent, supported by Jamaican dollar depreciation, higher United States (US) dollar deposit income, a 264-basis points drop in the US dollar revolving credit line, and refinancing of local debt via a $79.6 million, four-year term loan with a two-year grace period and a 45-basis points interest rate reduction.
The net taxation charge, said the two officials, was $10.3 million, down 60 per cent from 2024 due to lower profitability. In addition. net income year-to-date stood at $21.8 million, compared to $52 million in the prior year, driven by lower sales in Trinidad and Tobago and Barbados and the impact in other expenses recognised in the quarter two 2025.
Highlighting some “major milestones” reached in the second quarter, the chairman and managing director said that “TCL in Trinidad and Tobago – achieved its highest monthly cement production since August 2022, reaching 67.7 thousand metric tonnes in April.
In May, the Guyana operation TGI – reached its highest ever monthly sales of $9.4 million, 23 per cent higher than the previous best in March of this year.
In Jamaica, Carib Cement – successfully commissioned the debottleneck project on June 26, after an $84 million upgrade that increased kiln capacity by 15 per cent.
Inglefield and Mendoza said this investment would “satisfy local demand, support exports to neighbouring markets and reduce carbon emissions”.
“A 60-day shutdown as part of the final phase was safely completed without incidents and within budget,” they shared.
Looking ahead, the pair said in the director’s report that “in Trinidad and Tobago, our strategy will centre on defending our market position and distinguishing our brands in an increasingly dynamic and competitive environment”.
“In Jamaica, the successful completion of our kiln debottleneck project marks a pivotal milestone in our operational efficiency and production capacity. The expansion of our production capabilities, will enhance our regional competitive advantage and contribute to the development of local industries,” they said.
“It will allow us to serve all our customers in Jamaica, while having capacity to export and increase our foreign exchange generation.
“Looking across the remainder of the year, we expect continuous improvement in our financial performance despite market dynamics and other uncertainties driven by the current global trade challenges and conflict.”
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