The National Enterprises Ltd (NEL) earned an after-tax profit of $881 million for the nine-month period up to December 31, 2021.
NEL reported $881,583,000 in profit after paying $652,000 in taxes on $882,235,000, it announced in its unaudited financials. In comparison, it reported a $70 million lost as at December 2020.
NEL chairman Ingrid Lashley said the profit represented a four per cent increase from $848 million for the six-month period up to September 30, 2021. The report showed that for the audited quarter up to March 31, 2021, NEL incurred a loss of $270,431,000.
“NEL’s portfolios of investments continue to benefit from the reversal of impairment from the previous three years,” Lashley said.
Its income from dividends was $10.7 million, a 57 per cent decrease from the comparative period in the last fiscal year, but assets increased by $664 million mainly due to value increases in NEL’s investee company portfolio.
“NEL’s recent performance is reflective of the cyclical market forces in the energy sector that continue to see surging commodity prices, combined with the promise of overall economic recovery in other sectors as the world learns to cope with the covid19 pandemic,” said Lashley.
The turnaround is indicative of the expected outlook for growth in 2022.
“The trajectory for the turnaround in NEL’s results is supported by the decisive actions taken over the past two years, emphasising operational efficiencies and innovative solutions, for the realisation of increased dividend income and fair value across our portfolio,” she said.
NEL is an investment holding company that has several direct and indirect investments in NFM, Power Holdings Ltd, NGC NGL Co Ltd, NGC LNG Ltd, Pan West Engineers and Contractors Ltd, TSTT and Tringen.