National Enterprises Ltd (NEL) has reported an operating profit of $28.2 million for the fiscal year ended March 31, 2021.

In its annual report, general manager Charles Maynard said the results reflected a $2.4 million or 9.3 per cent increase when compared to the last fiscal year.

The company also reported a healthy cash flow and a static position to investment of funds.

'The increase of 181 per cent in cash at hand of $45 million in 2021 when compared to the $16 million in 2020 reflects the static position at year-end prior to investments of funds soon thereafter but is also indicative of the company's healthy cashflow position,' Maynard said.

Dividend was also reported to have increased to $26 million, an eight per cent jump from the previous year of $24 million.

He also pointed out that NEL underwent some re-engineering and re-energising of investee portfolios based on the results from fair market value assessments, and equity investments in subsidiaries, joint ventures and associates at the end of March stood at $1.78 million and $248 million in the long-term.

Maynard said while this reflected a loss of $270 million, it also represented an 18 per cent improvement over the loss of $327.5 million which was recorded in 2020.

'NEL's operating profits over the past three years reflected the general economic conditions over the same three-year period that the company's financial results have been reported on the basis of fair market value.

'Net income includes the unrealised loss/gain of the fair market value adjustments during the period.'

Maynard said the energy companies have shown a rebound despite having undergone a reduction in commodity prices due to the impact of the covid19 pandemic.

'Global forecasts indicate continued stabilisation of prices amidst a gradual economic recovery and improved growth prospects.

For the non-energy sector, Maynard said TSTT experienced reductions in revenues due to changes in mobile services and cost cutting measures of corporate customers and the company has since implemented cost savings and cash management initiatives in review of its operating expenses.

He added that NFM stood resilient when faced with supply chain disruptions and price increases in grain and other raw materials.

NEL is an investment holding company that holds a number of direct and indirect investments in companies considered to be key contributors to the economy. The companies are National Flour Mills (NFM), NEL Power Holdings Ltd, NGC NGL Company Ltd, NGC LNG Ltd, Pan West Engineers and Contractors Ltd, TSTT and Tringen.