NGC posts $1b after-tax profit

The National Gas Company of TT Ltd (NGC) has recorded a profit after tax of $1.06 billion for the first half of 2018.

In a statement issued Thursday evening, NGC chairman Gerry Brooks said this represents an increase of 39.1 per cent or $297.1 million above the corresponding six-month period last year.

The energy company also reported an increase in revenue– to $7.97 billion–which represents an increase of 19 per cent or $1.25 billion from $6.72 billion in the prior period. Brooks said the revenue increase was a combination of a 16 per cent uplift in methanol prices and improved gas production.

Having reminded that international credit rating agencies, S&P Global Ratings and Moody’s Investors Service, both reaffirmed NGC's credit ratings with a stable outlook, Brooks then said several strategic initiatives as well as important downstream negotiations were advanced during the first six months of the year.

NGC also executed a landmark technical services agreement with Empresa Nacional de HidroCarbonetos, EP (ENH), the state-owned petroleum company of Mozambique back in May. Through this agreement, ENH has effectively contracted technical, commercial and legal services from NGC for the development of Mozambique’s natural gas sector.

Two months prior, in March, a gas supply agreement was also executed with Global Petroleum Group (GPG), with the support of the government of Grenada, which includes a first right of refusal. This means TT would have the first option to buy Grenada's natural gas, once GPG's exploration wells start producing gas.

Brooks said both agreements are forward-looking and important initiatives.

"Considerable work" by Shell, Petróleos de Venezuela, SA (PDVSA) and NGC culminated, on August 25, in the historic execution of the Term Sheet for the Dragon field– part of the Mariscal Sucre natural gas complex off Venezuela's Caribbean coast and north west of Trinidad.

Brooks– part of the delegation to Venezuela–emphasised that 18 months of intense discussions and negotiations resulted in a mutually beneficial agreement for the governments of TT and Venezuela.

Summarising NGC’s performance, Brooks said, “The NGC group strategy will continue to focus on gas supply certainty and operational excellence whilst pursuing synergistic, inorganic growth opportunities. Guided by its strategic pillars and encouraged by our consistent progress, the board of directors is cautiously optimistic about our prospects for the future.”