The main feature in the activities crown of Demerara Distillers Limited (DDL) for 2009 was the continued construction of a US$5 million bio-methanisation plant that when fully operational this year promises to revolutionize the way the company obtains and uses energy.
The plant began operation this year and Chairman of the DDL Board of Directors Yesu Persaud has said, “…the methane gas produced at this plant will be utilized to power boilers at our distillery operations reducing the current dependence on heavy fuel oil.”
Based on projected efficiency of the plant and current fuel prices, Persaud estimates a payback on the investment in three years. The replacement of much of the company’s fossil fuel consumption through output of this plant is consistent with a drive for more environmentally sustainable methods of operating, the Chairman stated.
The plant is now operational and is gradually building up to its maximum capacity, which is expected to take some months since its start-up in May.
Persaud’s comments on DDL’s efforts to replace some of its fossil fuel consumption were reported in the company’s 2009 annual report. In that report, the company registered a profit before taxation of $1.169 billion, compared to $1.121 billion of 2008. The company announced earnings per share of at $1.05, up from $1.02 of 2008; and a dividend payout of 33 cents per share – in addition to the interim dividend of 12 cents per share already paid – over 28 cents per share of 2008.
The company’s total assets stood at $18.778 billion at December 31, 2009, over the $17.725 billion of the previous year. At the same for the 2009 reporting period DDL’s total liabilities were $9.533 billion, for the corresponding 2008 period liabilities were $8.960 billion.
Income from investment, rent and miscellaneous activities and sale of asset combined for a total of $376.1 million. Share capital remained steady at 770 million ordinary shares.
Significant shareholdings with five or more per cent holdings in DDL saw a marginal change in 2009 from the previous year, with the percentage holding of Trust Company (Guyana) Limited reducing to 18.19 per cent (140,113,817 shares) compared to 19.38 per cent (149,196,682 shares) it held in 2008. The other two significant shareholders re-mained the same as the previous reporting year: Secure International Finance Com-pany Limited 18.17 per cent (139,925,530 shares); and National Insurance Company at 8 per cent (61,600,000 shares).
Along with the methanisation plant, there were two current and continuing capital projects in 2009, forming the bulk of a total US$22 million investment.
DDL injected US$8 million into a bottling plant to replace in 2009 a 30-year facility, striking a new level of efficiency in this area. “The plant is now operating on one eight-hour shift whereas in the past two extended 10-hour shifts were required to meet peak demand . . .” Chairman Persaud stated.
The company launched construction of a US$5 million multi column alcohol still which was completed in 2010. Persaud stated that the new still is expected to improve competitiveness through a more efficient use of raw materials and consumption of fuel.
DDL has a number of operations, joint ventures, and associate companies in Guyana, the Caribbean, USA, Europe and India. Profit before taxation for this group of companies for 2009 was below that of single entity, DDL, at $1.652 billion, but above the previous year’s performance which stood at $1.439 billion.