FAQ

National Enterprises Limited (NEL) is an investment holding company incorporated on August 27th 1999 by the Government of the Republic of Trinidad and Tobago as part of a re-organization exercise. It holds previously-owned Government shareholding in selected state enterprises as well as other dividend producing assets. NEL was listed on the Trinidad and Tobago Stock Exchange in 2001 to assist in the development of the capital market and to give shareholders ownership of a portfolio of mature and profitable companies.

No. A Unit Trust is an open-ended fund in which units are redeemed at Net Asset Value subject to a buy or offer price. NEL is a public company in which the shares are not redeemed by the company itself but traded on the stock market. Consequently, the values of NEL shares are determined by the market

As an investment holding company, NEL has no business operations of its own. An investment holding company earns income from the receipt of dividends, rents, or interests and does not produce goods or offer services itself. It acts as a holding company by owning shares of other companies.

NEL currently owns 51% of the shares of Telecommunications Services of Trinidad and Tobago Limited (TSTT), Trinidad Nitrogen Co. Limited (TRINGEN) and National Flour Mills (NFM), 20% of the shares of NGC NGL Company Limited (NGC NGL), 37.84% in NGC Trinidad and Tobago LNG Limited (NGC LNG), 33.3% of Pan West Engineers and Constructors LLC and its wholly owned subsidiary, NEL Power Holdings Limited

The principal activities of the investee companies include:

National Flour Mills (NFM) – Manufacturer of food and feed products;

Telecommunications Services of Trinidad and Tobago Limited (TSTT) – Provider of telecommunications services;

Trinidad Nitrogen Company Limited (TRINGEN) – Manufacturer of ammonia;

NGC NGL Company Limited (NGC NGL) – Holding company for 51% stake in Phoenix Park Gas Processors Limited, which is a gas processing company and manufacturer of petrochemical products;

NGC Trinidad and Tobago LNG Limited – Holding company for 10% stake in Atlantic LNG Company of Trinidad and Tobago which produces liquefied natural gas;

Pan West Engineers and Constructors – Holding company for 10% stake in Phoenix Park Gas Processors Limited; and

NEL Power Holdings Limited – Holding company for 10% stake in the Power Generation Company of Trinidad and Tobago Limited.

NEL is required to comply with International Accounting Standard No. 27 (IAS 27) – Consolidated and Separate Financial Statements. This standard mandates that NEL utilize the consolidation method in preparing its financial statements and not the equity method of accounting that was used before March 21, 2006. This is required to reflect the fact that NFM is classified as a subsidiary of NEL. Therefore, the financial statements of NFM should be consolidated with the results of NEL. IAS 27 defines a subsidiary as an investment in which control is presumed when the parent acquires more than half of the voting rights of the enterprise, that is, has 51% or more of the shares. TSTT and TRINGEN which are managed by shareholder agreements, are treated as joint ventures and NEL records its 51% share of the net profit or loss using the equity method. Similarly for NGC NGL and NGC LNG, NEL reflects 20% and 37.84% of the net profit of these companies.

No, both NGC NGL and NGC LNG are investment holding companies which hold shares in other entities and record as income the dividends which are received from these entities; it does not record any proportion of the income earned by the operating entities themselves. For example, NGC LNG has a 10% stake in Atlantic LNG Company of Trinidad and Tobago and its main revenue source is dividend income which is dependent not just on probability, but on Atlantic LNG’s cash flow and reinvestment needs. Similarly, NGC NGL has a 51% stake in Phoenix Park Gas Processors Limited and its revenue is derived from the dividends received from that investment. NEL does not directly record any share of the net profit of Atlantic LNG Company of Trinidad and Tobago nor Phoenix Park Gas Processors Limited

No, each investee company will declare dividends based on income earned, its own dividend policy and cash available to meet capital investment, operating requirements, and dividend payments.

Firstly, dividends are paid by the investee companies out of after-tax profits and to the extent that adequate cash flows are available.

Secondly, the investee companies, as part of prudent financial management, do not pay out all profits but retain adequate amounts for reinvestment to ensure the companies’ future viability. The amount shown on NEL’s Consolidated Financial Statements as Retained Earnings does not, therefore, correspond to equivalent amounts held in cash, which NEL can use to pay out as dividends.

Thirdly, NEL cannot access the funds of joint venture companies without obtaining the consent of the joint venture partners. In addition,it has to ensure that all investee companies have adequate cash to meet operating requirements and to reinvest in the business.

The Board of NEL will keep investment opportunities under review with a view to ensuring that our portfolio of assets produces the best return for our shareholders.

The date of the annual meeting is set not later than 15 months after the holding of the preceding annual meeting and is scheduled at a time after the end of the financial year March 31 so as to ensure that all statutory obligations are met. NEL’s annual meeting is usually held in the second to last week of August.

As stated in the prospectus for its Initial Public Offering (IPO): “The Directors’ intention is for the Company to pay an annual dividend of not less than 90% of each year’s dividends received net of administrative costs.”

The fair values of TSTT, TRINGEN, NGC NGL and NGC LNG, for the interim and annual financial statements, are based on directors’ valuations that are undertaken by independent consultants. The fair value of NFM is based on its quoted price on the Trinidad and Tobago Stock Exchange.

Dividends are normally paid twice a year: an interim dividend in December (after the publication of the interim financial statements for the six-month period ended September 30); and a final dividend payment in August (after the publication of audited financial statements for the year ended March 31).

NEL’s registrar and transfer agent is the Trinidad and Tobago Central Depository Limited which can be contacted as follows:

Trinidad & Tobago Central Depository
10th Floor, Nicholas Tower
63-65 Independence Square
Port of Spain
Trinidad, West Indies
Phone: (868) 625-5107/9

A transfer agent keeps track of individuals and entities that own a company’s stock. It also keeps records of stock purchases, sales and account balances of registered shareholders. NEL’s transfer agent, Trinidad and Tobago Central Depository Limited, keeps track of all outstanding stock certificates and the registered holders of those certificates. If a registered shareholder buys or sells stock, Trinidad and Tobago Central Depository Limited transfers the ownership of that stock.

You would need to contact our registrar, Trinidad and Tobago Central Depository at 625-5107/9.

Yes, you would need to send your request in writing to the Corporate Secretary of NEL or Trinidad and Tobago Central.

A date is usually given for the Closing of the Registrar and, if a shareholder sells his/her shares before or on that date, he/she would not be entitled to dividends for that period. Once the date of the Closing of the Register is declared you may choose to delay selling your shares.

You would need to contact our registrar, Trinidad and Tobago Central Depository at 625-5107/9.

You may contact:

Trinidad & Tobago Central Depository
10th Floor, Nicholas Tower
63-65 Independence Square
Port of Spain
Trinidad, West Indies
Phone: (868) 625-5107/

The lawyer or executor of the estate should write to:
The Corporate Secretary
National Enterprises Limited
Level 15, Tower D,
International Waterfront Centre
Wrightson Road, Port of Spain
T: 612-1705

You would need to fill out an “indemnity form” which can be collected from either our office or the Trinidad and Tobago Central Depository Limited; have it signed by a Commissioner of Affidavit or an officer of your commercial bank; (the bank’s representative should place the bank’s stamp on the form) then return the form to NEL or the Registrar.

You may contact:

Trinidad & Tobago Central Depository
10th Floor, Nicholas Tower
63-65 Independence Square
Port of Spain
Trinidad, West Indies
Phone: (868) 625-5107/9 Senior Registrar Office

National Enterprises Limited
Level 15, Tower D,
International Waterfront Centre
Wrightson Road, Port of Spain.
T: (868) 612-1705