Massy Holdings Limited had a challenging financial year which resulted in a mixed financial performance.
Audited consolidated financial results for the year ended September 30 show a decline in the group's earnings, with third party revenue down by three per cent or $411 million from $11.9 billion to $11.5 billion.Earnings per share declined 22 per cent from $6.53 to $5.10 compared to 2015.
However, group cash increased to $2 billion compared to $1.7 billion last year and cash flow from operating activities increased to $1.3 billion. The ratio of debt to debt and equity also improved, reducing from 33 per cent 32 per cent.
In a statement to shareholders, chairman Robert Bermudez said $115 million in losses from two non-recurring events contributed to the decline in the group's earnings. In addition, the group incurred $22 million in new tax charges
He said: "The group's IT services investment in Costa Rica was impaired following a decision by the board to exit the investment via a sale of the group's interest to one of the shareholders who was prepared to provide additional capital into the company.
"In addition, the Oxygen plant investment jointly owned with Air Products in Trinidad incurred major maintenance expenses in 2016. These non-recurring charges contributed to a fall in EPS (earnings per share) of 71 cents."
Bermudez said Massy incurred a further $31 million after tax loss from the launch of its Internet and TV service. However, since the launch the service has gained momentum.
The group's energy services business experienced a fall in demand and lost $15 million, including restructuring charges.
"The expectation is that the significant restructuring during 2016 will allow us to return the energy services business to profitability in 2017," Bermudez said.
Excluding a one-off gain in the fourth quarter of 2015 and the effect of start-up operatins and one-off losses in 2016, the chairman said operating profit from the group's subsidiaries and associates grew by seven per cent.
"The group has promising platforms for growth with its methanol and DME joint venture in full construction mode and with the operations that have been established in promising growth poles for the group in Guyana and Colombia," he said.
A final dividend of $1.59 was declared, bringing the total dividend for the year to $2.10.