• For the 12 months ended December 31, 2024, OMNI Industries recorded a 20.30% decline in net profit, primarily due to lower year-over-year revenues and increased operating expenses.
• The falloff in revenues was due to adverse weather conditions from June to December 2024 and a cement shortage, both of which negatively impacted the construction industry and by extension, OMNI’s topline performance compared to 2023. The broader economic environment also remained sluggish, with negative growth recorded over the past few quarters, which also contributed to lower demand in its revenue lines.
• A faster decline in input costs relative to revenues caused gross profit to increase by 9.22% to J$871.54Mn. However, this improvement was overshadowed by a sharp rise in operating expenses, which grew by 24.39% to J$703.35Mn. Selling expenses rose 57.71% year-over-year to J$160.82Mn, driven by higher haulage and export-related costs.
• Factory expenses also increased by 19.00% to J$234.78Mn, mainly due to higher repair and maintenance costs, along with depreciation expenses related to new equipment commissioned in the fourth quarter. As a result, operating profit declined by 24.95% to J$175.87Mn for the period.
• The increase in operating expenses, combined with declining topline performance, outweighed reductions in both cost of sales and net finance costs, resulting in a 20.30% drop in net profit, which closed at J$120.27Mn.
• As part of its strategic retooling initiative, OMNI is acquiring new equipment aimed at driving cost efficiencies and reducing expenses in the short term while optimizing operational performance moving forward.
• OMNI’s stock price has fallen 0.92% since the beginning of the calendar year. The stock closed Thursday’s trading session at J$1.08 and currently trades at a P/E ratio of 22.45x, above the Junior Market Distribution Sector Average of 21.77x.

(Sources: OMNI Industries Limited & NCBCM Research)

• The number of vessels that passed through the Panama Canal, the world's second busiest waterway, fell to an average of 32.6 per day for a total of 1,011 ships in January, the first month-on-month decline in almost a year. Following a severe drought between late 2023 and early 2024 that forced passage restrictions, the canal saw a solid increase in transits during 2024 to a total of 1,059 ships in December, according to statistics by the Panama Canal Authority.
• However, the demand recovery was not enough to fill the 36 passage slots that remained on offer since September, the data showed, amid toll increases that led to some shippers opting for longer routes to Asia. In February last year, the total number of transits fell to 662 ships from 702 in January. But from February onwards, traffic increased almost 60% through the end of the year.
• In the fiscal year that ended in September, the canal reported a 5% fall in toll revenue to $3.18Bn amid the drought. In the fiscal years ended between 2020 and 2023, the canal's toll revenue had increased almost 26% to $3.35Bn, according to the canal's annual report.
• U.S. Secretary of State Marco Rubio earlier this month visited Panama City and met the canal's top officials to discuss tolls and the presence of Chinese businesses near the waterway, which some Washington politicians and government officials have identified as a security risk for its operation. Following Rubio's visit, the U.S. and Panama governments had a public dispute over tolls to be paid by U.S. military vessels, which have priority of passage through the canal, according to a 1977 neutrality treaty signed when the U.S. agreed to return the canal to Panama.
• Panama's president, Jose Mulino, said Washington was spreading "lies and falsehoods" when it claimed that U.S. government vessels would be able to pass through the canal without paying. The comments exacerbated tensions between the two countries after the U.S. had cited progress on military cooperation and strategies on China's expansion in Panama.

(Source: Reuters)

• Heritage Petroleum CEO Erik Keskula says asset improvement is needed for the company to get the most out of its mature fields. He made the comments while speaking during a panel on the second day of the T&T Energy Conference, which took place at the Hyatt Regency, Port-of-Spain.
• Keskula said innovation and technology can be used to access such improvement, explaining, “Utilising things like wireless and remote monitoring to reduce the mean time to respond when a well goes down or a facility goes down, but working closely with the members of the community, partnerships with our service companies to do that and these assets, actually have some advantages.”
• However, he noted that when working in these mature areas there are two advantages - being a bridge to big projects as the existing infrastructure is already in place and the capital has already been spent for that infrastructure so they tend to be less capital intensive, meaning the economics can look a little bit better and be delivered faster.
• Keskula also added that as work continues to improve, recovery factors with technology and modernisation, there remains real opportunity to leverage those mature fields to be “the bridge for the big projects on the horizon.
• Meanwhile, Mala Baliraj, chair of the Energy Chamber of T&T, who spoke on day one of the conference, noted that the industry is rapidly changing and the skills needed in the sector are being transformed through digitisation, automation and artificial intelligence. She advised there must be greater focus on programmes that invest heavily in training new young people entering the industry, as well as retraining the existing workforce.
• The issue of improving the ease of doing business is also crucial if we are to create the climate for investment in production, decarbonisation and people, she highlighted.

(Source: Trinidad& Tobago Guardian)

• U.S. producer prices increased solidly in January, offering more evidence inflation was picking up again and strengthening financial market views that the Federal Reserve would not be cutting interest rates before the second half of the year.
• The broad rise in producer inflation reported by the Labour Department on Thursday, February 13, 2025, followed on the heels of news on Wednesday that consumer prices accelerated by the most in nearly 1 and a half years in January. Some details of the report, however, suggested a more moderate increase in January in the key inflation measures tracked by the U.S. central bank for its 2% target than had been anticipated in the wake of the strong CPI data.
• The producer price index for final demand rose 0.4% last month after an upwardly revised 0.5% gain in December, the Labor Department's Bureau of Labor Statistics (BLS) said. Economists polled by Reuters had forecast the PPI to rise 0.3%.
• In the 12 months through January, the PPI advanced 3.5% after increasing by the same margin in December. With January's PPI report, the BLS updated weights to reflect price movements in 2024, and seasonal adjustment factors, the model that the government uses to iron out seasonal fluctuations from the data. The rise in the PPI was across goods and services.
• With the CPI and PPI data in hand, economists' estimates for the increase in the core PCE price index in January ranged from 0.2% to 0.3%. That was lower than the 0.4% gain most had forecast after the CPI data. Core inflation climbed 0.2% in December. It was forecast to increase by 2.6% year-on-year in January, down from the 2.7% estimated following the CPI report. Annual core inflation was 2.8% in December.
• "The Fed still can declare, therefore, that progress in returning inflation to its 2% objective is still being made," said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics.

(Source: Reuters)

• The U.K. economy grew by 0.1% in the fourth quarter of 2024, beating expectations, according to a preliminary estimate from the U.K.’s Office for National Statistics (ONS) on Thursday, February 13, 2025. Economists polled by Reuters had expected the country’s GDP to contract by 0.1% over the period.
• The services and construction sectors contributed to the better-than-expected performance in the economy, up 0.2% and 0.5%, respectively, but production fell by 0.8%, the ONS said.
• The British economy had recorded zero growth in the third quarter and lacklustre monthly GDP data since then, with a 0.1% contraction in October and a 0.1% expansion in November. The ONS noted that growth had picked up in December, with an estimated 0.4% month-on-month expansion thanks to growth in services and production.
• Sluggish growth and a recent drop in inflation prompted the Bank of England last week to make its first interest rate cut of the year, bringing its benchmark rate down to 4.5%.
• The central bank signalled further rate trims were coming as inflationary pressures wane but noted that higher global energy costs and regulated price changes are expected to push up headline inflation to 3.7% in the third quarter of 2025, “even as underlying domestic inflationary pressures are expected to wane further.”
• The BOE expected the inflation rate to fall back to its 2% target by 2027. The central bank also halved the U.K.’s economic growth forecast from 1.5% to 0.75% this year.

(Source: Reuters)

• As the nation awaits the tabling of the 2025/26 Estimates of Expenditure on February 13, the business sector is optimistic of a strategic, forward-thinking Budget that addresses immediate challenges while laying the groundwork for sustainable inclusive economic growth.
• Speaking with JIS News, President of the Private Sector Organisation of Jamaica (PSOJ), Metry Seaga, who represents 1,890 members, says, “We are hopeful, and we are confident.” He says the PSOJ expects fiscal responsibility to remain entrenched within the national Budget going forward. He emphasised the need for continued streamlining of business registration and compliance processes to reduce bureaucratic hurdles that often impede growth.
• Prime Minister, Dr. the Most Hon. Andrew Holness, has announced the establishment of a Speed Task Force that will work to reduce bureaucracy and red tape as part of a broader strategy to foster a more efficient business environment and stimulate economic growth.
• In the meantime, the Jamaica Manufacturers and Exporters Association (JMEA), which has a membership base of more than 400 companies across various subsector groups, is looking forward to measures to boost competitiveness in the manufacturing sector.
• Among the key proposals is a reform of General Consumption Tax (GCT) to reflect payment on money collected and not invoice raised; greater support for renewable energy adoption by extending solar tax credits, currently available to residential households; and providing more affordable, quality factory space.
• Access to affordable financing remains a top priority through lower interest rates on loans offered by commercial banks and expanded access to low-interest financing options tailored for smaller businesses.
• There is also strong emphasis on workforce development and inclusion. Businesses are calling for programmes that integrate marginalised groups, including persons with disabilities, at-risk youth, and residents of underserved communities. This approach is seen as a win-win, further increasing employment while promoting social equity. With an eye on global markets, both Micro, Small, and Medium Enterprises (MSMEs) and manufacturers are seeking government backing for training, trade facilitation, and grants to help Jamaican businesses compete on the international stage.

(Source: JIS)

• Minister of Health and Wellness, Dr. the Hon. Christopher Tufton, says he is not opposed to recruiting from overseas to fill the nursing vacancies within the health sector. On average, some 500 nurses per year have left the system since 2018, including specialist nurses.
• “We want to engage our people first even before we seek to encourage and invite others to come in, but I don’t think we can leave that off the table either, to be totally frank. As you know, we have over 300 Cuban healthcare workers here in Jamaica and we do have from other nationalities,” Dr. Tufton said.
• “To fill the immediate gaps, if we can’t source locally, we have to explore other options, and I think the Philippines is a worthy partner,” he added. A Memorandum of Understanding was recently signed between the Philippines and the Ministry of Health and Wellness, providing for faculty exchanges, as well as specialist training and knowledge and experience sharing in the areas of biotechnology, epidemiology, and healthcare management, among others.
• “We’re building out hospitals now, which will give us more clinical rotation space. The Philippines has over 400 hospitals for the 100-plus million population. They have enough space to allow for some clinical rotation, so our people can go there as well as access… their faculty, either remotely or in person. So, that’s the first idea,” Dr. Tufton said.

(Source: JIS)

• With a diverse pillar of growth, Guyana is building an economy that could withstand global shocks, according to President, Dr Irfaan Ali.
• Appearing on a recent airing of the Energy Perspective Podcast, the Guyanese Head of State noted that while the country has a burgeoning oil and gas industry, it is critical for the government to pursue economic diversification and build out the other segments of the economy.
• In building these diverse pillars, he noted that Guyana and its neighbouring countries must continuously evaluate and examine potential opportunities across the region. The question that he believes is lingering, is how to ensure the investments in infrastructure and advanced development could create new growth areas locally but still be linked to the growth of the region.
• The aim is to leverage the raw production in Lethem, Region Nine and Northen Brazil and convert that raw production into value-added goods for not just Guyana, but the entire region as well. Ideally, with Guyana expected to reduce the cost of energy, it is expected that much traffic for trade and manufacturing is on the horizon.
• In 2025, Guyana’s economy is expected to continue its unprecedented growth this year, with a projected economic expansion of 10.6%. This growth will be supported by efforts in mechanisation and conversion, as well as value-added production.
• Additionally, rice production is expected to expand by 12.4%, reaching 804,000 tonnes through expanded acreage and improved crop varieties developed through research and development. The other crop sub-sectors are projected to grow by 11.7%, driven by expanded acreage and the country’s focus on strengthening local food security while livestock production is also expected to grow by 7.5% across all categories.

(Source: Guyana Chronicle)

• Services activity in Brazil ended 2024 on a negative note despite notching its fourth consecutive year of gains, with the sector unexpectedly slipping in December as the local economy provides cooling signs, data showed on Wednesday.
• According to statistics agency IBGE, services activity in Latin America's largest economy was down 0.5% in December from November, undershooting market forecasts of a 0.1% expansion in a Reuters poll of economists.
• Service sector activity is the main engine of Brazil's economy and helped the country grow more than expected throughout last year but has been slowing in recent months amid tight financial conditions. December was the second negative month in a row for the sector, with the fresh figures adding to data showing a drop in Brazil's industrial output in the month.
• "The consequence of this recent weakness in an all-important sector of the economy is that our nowcasters are falling further, suggesting downside risks to our GDP estimates," JPMorgan economists said in a note to clients.
• Three of the five main groups surveyed by IBGE were down in December on a sequential basis, according to the agency. The recent service sector weakness comes as Brazil's central bank tightens its monetary policy to return inflation to its 3% target. Policymakers at the bank last month delivered a 100-basis-point interest rate hike for the second straight meeting to 13.25% and signaled another hike of the same size in March while taking time to analyze activity data.
• On a yearly basis, Brazil's services activity grew 2.4% in December, while economists expected a 3.5% rise. In the full year the sector was up 3.1%, its fourth consecutive year of gains, IBGE said.

(Source: Reuters)

• U.S. consumer prices increased by the most in nearly 1 and a half years in January, with Americans facing higher costs for a range of goods and services, reinforcing the Federal Reserve's message that it was in no rush to resume cutting interest rates amid growing uncertainty over the economy.
• The hotter-than-expected inflation reported by the Labour Department on Wednesday, February 12, 2025, was likely partly due to businesses raising prices at the start of the year, evident in a record surge in the cost of prescription medication and an increase in motor vehicle insurance.
• The consumer price index jumped 0.5% last month, the biggest gain since August 2023, after rising 0.4% in December, the Labor Department's Bureau of Labor Statistics (BLS) said. Food prices rose 0.4% after increasing 0.3% in December. Grocery store prices surged 0.5%, with the cost of eggs soaring 15.2%, the largest increase since June 2015. That accounted for about two-thirds of the rise in prices at the supermarket.
• The report followed a pattern of CPI numbers overshooting expectations every January, which some economists said suggested that the seasonal adjustment factors, the model used by the government to strip out seasonal fluctuations from the data, were not fully accounting for the one-off turn-of-year price hikes.
• Nonetheless, they said the so-called residual seasonality was not responsible for all of the broad rise in prices, which offered a cautionary note to President Donald Trump's push for tariffs on imported goods that have been panned by economists as inflationary.
• Trump was elected on promises to lower prices for inflation-weary consumers. High inflation could imperil the Trump administration's agenda, including tax cuts, which could overstimulate a healthy economy, and mass deportations of undocumented immigrants that are seen causing labour shortages and rising costs such as wages for businesses.
• "The moderation we saw in consumer inflation last summer is no longer visible now," said Scott Anderson, chief U.S. economist at BMO Capital Markets. "The problem for the Fed is this isn't just a one-month event but looks like a real multi-month firming of inflation pressures."

(Source: Reuters)