Trinidad and Tobago NGL records profit after tax of $86.3m

Trinidad and Tobago NGL Ltd (TTNGL) has recorded a sound performance for the first six months of 2021, with a profit after tax of $86.3 million.

For the period ending June 30, the figure represented a 476 per cent increase, when compared to the same period of 2020, which recorded $14.5 million.

Earnings per share also increased to 54 cents, compared to nine cents for the same period in 2020.

In the summary financial statements chairman Conrad Enill said the improved performance was because of higher profitability from TTNGL’s investment in Phoenix Park Gas Processors Ltd (PPGPL).

“This enhanced performance of PPGPL continued to be driven primarily by higher Mont Belvieu natural gas liquids (NGLs) prices, which were 103.8 per cent above the 2020 period as markets continue their recovery from the impacts of the covid19 pandemic.”

He added that the company continued to make advances in furthering its product trading strategy, which led to a significant economic return for the period.

“Natural gas volumes to Point Lisas for processing were marginally lower than that for the first half of 2020 – below 3.4 per cent. This was mitigated by higher NGL content in the gas stream, five per cent higher than in 2020 and was a result of deliberate efforts of the National Gas Company (NGC).

“Consequently, NGL production from gas processing improved by 3.8 per cent. Additionally, PPGPL has successfully advanced its marketing efforts to renew key sales contracts in the lucrative Eastern Caribbean market.”

PPGPL, Enill pointed out, has achieved high levels of operating efficiencies in its process plant operations, safe operations and effective cost management, which has earned the company first in its division for its safety performance in first quarter of 2021 by the Gas Processors Association in the US.

Additionally, he said PPGPL’s North American subsidiary, Phoenix Park TT Energy Holdings Ltd (PPTTEHL) continued to deliver robust performance for the half year, and experienced high trading volumes and continued benefits from improved margins from the sales contracts with its counterparts.

“For the period, PPTTEHL contributed approximately seven per cent to PPGPL’s profit after tax. Continued earnings growth is expected from this business segment in the future.

“PPGPL continues to focus on operating efficiencies and optimisation of commercial agreements despite challenges of lower natural gas volumes to Point Lisas for processing and the uncertainty arising from the ongoing impact of the pandemic on regional and international NGL markets.

The development of sustainable long-term shareholder value, Enill explained, will be underpinned by these efforts, along with continued favourable NGL prices and demand forecasts.

The company said an interim dividend of 25 cents per share would be payable on September 15 to shareholders on the register as at August 24.