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MIRA INFORM REPORT
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Report No. : |
499367 |
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Report Date : |
22.03.2018 |
IDENTIFICATION DETAILS
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Name : |
TRINIDAD AND TOBAGO ELECTRICITY COMMISSION |
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Registered Office : |
63 Frederick Street, Port of Spain |
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Country : |
Trinidad and Tobago |
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Financials (as on) : |
2016 [Summarized] |
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Date of Incorporation : |
1945 |
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Legal Form : |
State-Owned Company |
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Line of Business : |
Subject is the sole retailer of electricity in Trinidad and Tobago. |
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No. of Employees : |
3,210 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Poor |
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Payment Behaviour : |
Slow & Delayed |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Trinidad and Tobago |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
TRINIDAD AND
TOBAGO - ECONOMIC OVERVIEW
Trinidad and Tobago relies on its energy sector for much of its economic
activity, and has one of the highest per capita incomes in Latin America.
Economic growth between 2000 and 2007 averaged slightly over 8% per year,
significantly above the regional average of about 3.7% for that same period;
however, GDP has slowed down since then, contracting during 2009-12, making
small gains in 2013 and contracting again in 2014-17. Trinidad and Tobago is
buffered by considerable foreign reserves and a sovereign wealth fund that
equals about one-and-a-half times the national budget, but the country is in a
recession and the government faces the dual challenge of gas shortages and a
low price environment.
Energy production and downstream industrial use dominate the economy.
Oil and gas typically account for about 40% of GDP and 80% of exports but less
than 5% of employment. Trinidad and Tobago is home to one of the largest
natural gas liquefaction facilities in the Western Hemisphere. Trinidad and
Tobago produces about nine times more natural gas than crude oil on an energy
equivalent basis with gas contributing about two-thirds of energy sector
government revenue. The US is the country’s largest trading partner, accounting
for 28% of its total imports and taking 48% of its exports.
Economic diversification is a longstanding government talking point, and
Trinidad and Tobago has much potential due to its stable, democratic government
and its educated, English speaking workforce. The country is also a regional
financial center with a well-regulated and stable financial system. Other
sectors the Government of Trinidad and Tobago has targeted for increased
investment and projected growth include tourism, agriculture, information and
communications technology, and shipping. Unfortunately, a host of other
factors, including low labor productivity, inefficient government bureaucracy,
and corruption, have hampered economic development.
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Source
: CIA |
STATUTORY
INFORMATION
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Legal Name: |
TRINIDAD AND TOBAGO ELECTRICITY COMMISSION |
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Trade Name: |
THE TRINIDAD AND TOBAGO ELECTRICITY COMMISSION T&TEC |
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ID: |
NA |
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Date Created: |
1945 |
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Date Incorporated: |
1945 |
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Legal Address: |
63 Frederick Street, Port of Spain, Trinidad and Tobago |
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Operative Address: |
63 Frederick Street, Port of Spain, Trinidad and Tobago |
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Telephone: |
(868) 623 – 2611 / 6 |
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Fax: |
(868) 625 – 3759 |
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Legal Form: |
State-Owned Company |
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Email: |
comments@ttec.co.tt |
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Registered in: |
Trinidad and Tobago |
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Website: |
www.ttec.co.tt |
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Contact: |
Mr. Kelvin Ramsook- General Manager |
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Staff: |
3,210 |
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Activity: |
NAICS 1: Other Electric Power Generation |
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Banks: |
The company does not disclose its banking details. |
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History: |
The Trinidad and Tobago Electricity Commission came into being by
virtue of the Trinidad and Tobago Electricity Commission Ordinance No. 42 of
1945. The Commission held its first Board Meeting on 28th December, 1945 and
T&TEC began its operations on 1st January 1946. |
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Key Developments: |
T&TEC debt
to NGC is over $3 billion The parliament is informed that the Trinidad and Tobago Electricity
Commission’s debt to the National Gas Company as of April 30th 2017 is TT
3.12 billion dollars. Fitzgerald Hinds Public Utilities Minister made known the development
in the House of Representatives this afternoon. He said gas is used to produce electricity; this gas is purchased by
T&TEC from NGC and supplied to independent power producers to convert it
to electricity. Mr Hinds confirmed that the state owned company has been experiencing
financial challenges which have impacted its ability to meet its commitments. Shocking TTEC
$612M loss November 24, 2015 THREE years after the fact, Parliament has only this month received
the annual report of the Trinidad and Tobago Electricity Commission (TTEC)
for 2013. That alone would be unsatisfactory were it not for the fact that the
picture painted in the report is — to use an appropriate word — shocking. For the year 2013 alone, TTEC reported a total comprehensive loss of
$612 million. This was a somewhat better performance over 2012, when the loss
was even more: $692 million. Improved performance or not, hundreds of
millions are being lost at the State’s sole retailer of electricity and there
are no signs of any meaningful let-up. But the loss is not the end of the matter. TTEC has billions in debt. According to the Administrative Report for 2013, debt to the National
Gas Company (NGC) stood at $1.3 billion by the end of the period under
review. The debt started at about $2 billion in 2012. In March 2014, a
Parliament committee heard of TTEC having an overall debt of $2.5 billion to
NGC, Trinidad Generation Unlimited and British bank HSBC. |
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PRINCIPAL
ACTIVITY
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Trinidad and Tobago Electricity Commission (T&TEC) is the sole
retailer of electricity in Trinidad and Tobago. |
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Products/Services description: |
It is responsible for the design, construction, operation and maintenance
of the country's electrical transmission and distribution network. |
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Brands: |
TRINIDAD AND TOBAGO ELECTRICITY COMMISSION |
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Sales are: |
Wholesale and Retail |
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Clients: |
Essex Exports Inc Essex Manufacturing, Inc. Itron Electricity Metering Inc |
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Suppliers: |
Zhejiang Jiangshan Transformer Co., K.C. Canada Inc. |
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Operations area: |
National and International |
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The company imports from |
CHINA CANADA |
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The company exports to |
UNITED STATES OF AMERICA |
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The subject employs |
3,210 employees |
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Payments: |
Slow & Delayed |
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LOCATION
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Headquarters : |
63 Frederick Street, Port of Spain, Trinidad and Tobago |
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Comments on Address: |
The address given in the order is a branch location. |
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Branches: |
Northern Area Office |
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Related Companies: |
On 24th December, 1994, T&TEC established a fully owned
subsidiary, the Power Generation Company of Trinidad and Tobago (PowerGen) in
which it vested the generation assets of its Port-of-Spain, Pt. Lisas and
Penal power stations. Forty-nine percent equity in PowerGen was then divested
to a consortium of Southern Electric International (39%) and Amoco(10%).
T&TEC retains the remaining equity 51%. |
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GROUP
STRUCTURE AND SUBSIDIARY COMPANIES
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Listed at the stock exchange: |
NO |
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Capital: |
NA |
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Shareholders: |
The company is owned by the government of the Republic of Trinidad and
Tobago. The Regulated Industries Commission is charged with the responsibility
of regulating The Trinidad and Tobago Electricity Commission. |
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Management: |
Mr. Kelvin Ramsook- General Manager Mr. Courtenay Mark - AGM—Engineering Mr. Neil Balgobin - Chief Financial Officer Mr. Ravi Shukla - AGM—Transmission Mr. Ian Ramrattan - AGM—Administration Mr. Rene Austin - AGM—Distribution Mrs. Jacqueline Cheesman - AGM—Human Resources Mr. Zainool Mohammed - AGM |
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FINANCIAL
INFORMATION
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The company does not make its financial statements
public. The following information has been provided by private sources: |
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TTD 2016 |
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Sales |
3,000.000.000 |
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Cash flow |
Normal |
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LEGAL
FILINGS
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T&TEC $2.5b in debt Trinidad and Tobago Electricity Commission (T&TEC) is running at
what has been described as a chronic deficit and owes close to $2.5 billion
to both National Gas Company (NGC) and Trinidad Generation Company Limited
(TGU) because of old and inefficient equipment. The State-owned company’s level of indebtedness was revealed at
yesterday’s Public Accounts Committee Meeting into the affairs of T&TEC
at Parliament Building, Tower D,
International Waterfront Centre, Port of Spain. T&TEC’s financial woes were
initially pointed out by committee member Dr
Dhanayshar Mahabir, who also asked what was T&TEC’s overall stock
of debt owed to all creditors. “The two main outstanding debts will be NGC $885 million and $600
million to the TGU. so the total indebtedness you could say is $1.6 billion,”
said T&TEC general manager Kelvin Ramsook. However, later on, when asked by chairman of the committee Colm Imbert
about a non-redeemable bond taken by T&TEC, Ramsook said: “It is an item
in our debt and we also have one other loan that is valued at $300 million at
this point.” This put the total debt at $2.5 billion. The committee also learnt that on a monthly basis T&TEC has a
deficit of $136 million as of December 2013. So, on an annual basis,
T&TEC is running a deficit of some $1 billion per annum. Asked why this was so, Ramsook, who at first said it was because their
expenditure had increased while their income had not changed, eventually
admitted after being prodded by Imbert that it was because the current
equipment being used by T&TEC was not as effective or modern as the TGU
equipment, which would make T&TEC’s generation costs a lot lower once the
TGU plant comes fully on stream. Assistant general manager of engineering Courtney Mark, who explained
in detail what Ramsook meant, said: “The cost of production of electricity
from the older plant in Port of Spain, together with fuel, is 26 cents; the
other newer Powergen plant is 19 cents, Trinity plant is 22 cents, TGU plant
has the potential to produce at 18.25 cents per kilowatt. |
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CASES |
No records found. |
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SUMMARY
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Trinidad and Tobago Electricity Commission (T&TEC) is the sole
retailer of electricity in Trinidad and Tobago. It is responsible for the design, construction, operation and maintenance
of the country's electrical transmission and distribution network. The company has 3,210 employees and generates an estimated $3 billion
TTD in annual revenue. It operates nationally and internationally, mainly exporting to the
United States of America. It is ACTIVE In business with no negative records. |
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RISK
INFORMATION
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DEBTS |
HIGH |
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PAYMENTS |
Slow & Delayed |
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CASH FLOW |
Normal |
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STATUS |
Active |
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INTERVIEW |
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NAME |
Cherelle |
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POSITION |
Customer Service |
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COMMENTS |
She confirmed the name of the company, the address of the headquarters
and location, the date of creation of the company, the number of employees
and the name of the General Manager. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.22 |
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1 |
INR 91.33 |
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Euro |
1 |
INR 79.96 |
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TTD |
1 |
INR 9.64 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.