Consolidated Energy - comment

The decision to idle melamine production in Trinidad and Tobago is a surprise. However, melamine production represents around 15% (at most) of the revenue of the AUM business and is likely to be marginal in EBITDA contribution due to tariffs. Even without the tariff impact, we estimate that margins are around 10% and at full production would represent <5% of the EBITDA of the unit.

Consolidated Energy has 60k tons of Melamine capacity at Point Lisas, and at full capacity, this would equate to cUSD50m of Revenue. EBITDA margins on Melamine are around 10% => USD5m. In FYE24, the AUM complex generated around USD350m of revenue (excluding service revenue) and USD130m of EBITDA. The US imposed Tariffs on melamine in January 2025. The ITC tariffs are under anti-dumping rules, so would not necessarily be impacted, even if the US Supreme Court were to void President Trump’s tariffs.

https://www.guardian.co.tt/business/proman-shuts-melamine-plant-6.2.2490339.310ea152b8