Trinidad and Tobago NGL Ltd records $5.8m profit

Phoenix Park Gas Processors Ltd in Couva. Phoenix Park is the primary asset of Trinidad and Tobago NGL Ltd. -
Phoenix Park Gas Processors Ltd in Couva. Phoenix Park is the primary asset of Trinidad and Tobago NGL Ltd. -

DESPITE a challenging year due to the covid19 pandemic, the Trinidad and Tobago NGL Ltd (TTNGL) was able to record an after-tax profit of $5.8 million for the year ended December 31, 2020. TTNGL made this announcement in a statement issued on Wednesday.

The company said its lower financial performance last year compared to 2019 was reflective of the impacts of the pandemic, which hit the global energy sector particularly hard.

"NGL prices, which correlate strongly with crude oil and refined product prices, were materially lower for 2020."

TTNGL said its underlying asset, Phoenix Park Gas Processors Ltd (PPGPL), recorded average product prices and gas processing volumes of 31.1 and 16.5 per cent respectively lower than in 2019. "NGL production for 2020 was 15.8 per cent lower than in 2019."

TTNGL said as a result of this, last year PPGPL recorded profit after tax of $116.8 million and this is a 49.5 per cent reduction when compared to $231.4 million for the corresponding period in 2019. But TTNGL observed that notwithstanding challenges caused by price erosion "the demand for PPGPL’s products remained relatively steady since the onset of the pandemic."

TTNGL said, "This is a testament to the resilience of the PPGPL model and competitive strength in the markets it serves." The company added that its overall outlook, as well as that for PPGPL, have since improved because of several positive developments.

"In the latter half of 2020, there was an appreciable rebound in natural gas demand and prices, which is expected to continue into 2021," TTNGL said. "The negative impacts of lower NGL prices and NGL volumes were also mitigated by improved NGL content in the gas stream and higher price differentials recognised for the year (11.1 and 3.8 per cent improvement respectively)."

TTNGL added that PPGPL’s North American NGL business recorded a strong performance last year, and "earnings from this segment are expected to continue contributing positively to PPGPL’s results in the short to medium term."

In keeping with its strategic plan to grow its business, TTNGL continued, PPGPL continues to seek out new territories of operation while strengthening its local performance through initiatives centred on sustainability.

The company said PPGPL's improved operating performance in the fourth quarter of 2020 continued into the first quarter of this year. It explained this performance is "being driven by improved market prices, increased volumes and increased liquid content in the natural gas supplied by NGC, and the continued management of operating costs."

Based on these positive trends, its results for the year ended December 31, 2020 and its current cash flow position, TTNGL said its board of directors is pleased to announce a final dividend of $0.05 per share to shareholders. This dividend represents the total dividend for 2020 and will be paid on May 12 to shareholders on the register of members as of April 23.

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