• Lasco Manufacturers profit for the nine month period ending December 31, 2018, grew by +32% to $700.5Mn (EPS: $0.17), relative to the $532.15Mn (EPS: $0.13) earned a year prior.

• This was driven by a +6% increase in revenues and a 9% reduction in finance costs.

• Lasco Manufacturers stock has declined by -12.43% YTD since the start of 2019 and currently trades at a P/E of 19.14x earnings which is below the junior market average of 32.52x earnings.

(Source: LASM Financials)

• Lasco Distributors made a profit of $620.85(EPS: $0.18)  for the nine months ending December 31, 2018, which represents a +16% increase over the $535.22Mn (EPS: $0.16) earned in 2017. This was driven by a boost in other operating income which grew by +150%, coupled with a +9% increase in revenues.

• Total operating expenses during the period amounted to $2.1Bn, an increase of 13.6% compared to the corresponding period in 2017. This was primarily due to start-up marketing costs from newly launched brands, as well as increases in insurance and depreciation expenses related to warehouse expansion, and other capital expenses for increased operational capacity.

• LASD’s stock price has remained flat YTD with a very marginal +0.26% appreciation and currently trades at a P/E of 12.16x earnings which is below the junior market average of 32.52x earnings.

(Source: LASD)

• SAGICOR Financial Corporation said yesterday that it had appointed Alignvest executive Andre Mousseau as its chief financial officer (CFO), effective from last Friday.

• Mousseau's appointment as CFO was signaled in late November when Sagicor announced an agreement to be acquired by Alignvest Acquisition II Corp in an offer valued at US$536 million.

• Alignvest Acquisition II Corporation is a Canadian company, listed on the Toronto Stock Exchange that is a special purpose acquisition corporation (SPAC).

(Source: Trinidad Express)

• Fitch maintains its expectation that the Central Bank of Trinidad & Tobago will devalue the Trinidadian dollar in 2019 in response to capital outflows and shortages of hard currency.

• However, Fitch acknowledges significant upside risk to its forecasts, given the government’s strong preference for maintaining the peg as a means of containing inflation and boosting purchasing power.

(Source: Fitch

• There is a segment of the market that thinks too much attention is paid to every single utterance of the world’s central bankers. Cue, today: The financial world is tying itself in knots trying to decipher the somewhat hawkish comments of recently dovish hawkish Fed Chair Jerome Powell, who gave a brief but positive assessment of the economy at an event on Wednesday.

• Look, it’s perfectly clear: Depending on various stuff, they could hike, cut or maybe hold. Still confused? Don’t feel bad. Even former Fed head honcho Janet Yellen has no idea what’s next. And since we’re talking policymakers, the Bank of England meets today and is expected to neither cut nor raise while telling us they stand ready to cut or raise.

• At least one central bank is in the mood to shake things up: Indian policymakers delivered a surprise cut today.

(Source: Bloomberg)

• Peru will run modest current account deficits in the coming quarters as a wide primary income shortfall and increasing demand for imports will offset export growth.

• In the longer term, however, increasing extractive sector production will help narrow the current account deficit.

• Fitch has revised its 2019 and 2020 current account deficit forecasts to 1.7% and 1.6% of GDP respectively, from 1.4% and 1.2% previously, reflecting a less bullish outlook for copper prices.

(Source: Fitch)

• Fitch expects economic policy continuity in Jamaica over the coming years, as a broad political consensus supports the IMF-backed reforms implemented under Prime Minister Andrew Holness.

• Orthodox economic policies, including central bank reform, will support the business environment, underpinning our constructive long-term economic outlook.

• However, security concerns will continue to threaten social stability and we note that public demands for services may limit the scope of further fiscal consolidation. 

(Source: Fitch)

• For the first quarter ending December 31, 2018, Barita Investments Limited (BIL) reported a net profit of $108.43Mn (EPS; $0.24), which represents 379.7% improvement on the result one year earlier.

• The performance over the period was primarily driven by a fair value gain of $198.4Mn on its equity portfolios.      The improvement in the results was also supported by an improvement (up 53%)  in net interest income, resulting from a significant (25.7%) decrease in interest cost of repurchase agreements. Fee and commission income was also up 35.4%, benefitting a  growth in total assets under management and a strengthening of its investment banking capabilities. 

• BIL closed yesterday’s trading session at a price of $51.13 per share.  At that price, the company trades at a P/E 43.7x earnings which is above the 17.5x  average for its financial market peers. 

(Source: BIL Financials)

• Fitch expects the political and economic crisis in Venezuela will have spillover effects on neighboring Trinidad & Tobago (T&T), exacerbating political gridlock.

• Public support for the government will be further undermined by a weak economy and growing security concerns.

• Prime Minister Keith Rowley is likely to face a challenging re-election campaign in 2020 that will dampen the likelihood of a compromise in 2019.

(Source: Fitch)

• San-Fernando-Based Trinity Exploration and Production (E&P) plc now estimates its oil discovery at Galeota (TGAL) to be around 700 million barrels (mmbbbls), a company executive confirmed in a January 23 telephone interview. First announced in 2013 as 115 million barrels (mmbbbls), the find is located offshore Point Galeota in southwest Trinidad.

• Investors on the London Stock Exchange, where Trinity is listed, rewarded confirmation of the good news in the company’s January 15 operational update, with a 45-per cent spike in Trinity’s stock, from 11 pence per share (a 12-month low on December 24, 2018) to 16 pence per share. It closed trading at 14.6 pence per share Friday (Feb. 1, 2019).

• For the first phase of field development, the company is looking to develop the relevant infrastructure which would help it to achieve a medium-term onshore and offshore production target of over 7,500 bopd.

• Assuming other producers remain at current levels, this would make Trinity the country’s second top privately-owned oil producer, behind only Perenco (10,476 bopd); and above BP (6,804 bopd) BHP Billiton (4,679 bopd), Touchstone (projecting 2,000 bopd) and EOG Resources (1,385 bopd).

(Source: Trinidad Express)