TTNGL profits dip by $26.5m

THE TTNGL Ltd (TTNGL) company reported $165.8 million in profit (excluding impairment charges) for the year ending December 2022 – a $26.5 million decline from the $192.3 million recorded for the previous year.

The company’s impairment charges for 2022 were recorded as $562.4 million, double the restated $267.2 million 2021 figure, a TTNGL media release on October 13 said.

Likewise, TTNGL’s asset, the Phoenix Park Gas Processors Ltd (PPGPL), in which the company owns 39 per cent interest, recorded a 13.4 per cent dip in net profit from US$ 73.7 million in 2021 to US$63.8 million in 2022 – a decline by US$9.9 million, or TT$67.32 million.

The release said shareholders voiced their concerns about the decline in profits recorded for both the TTNGL and PPGPL in the 2022 financial report at the TTNGL’s 8th annual meeting on October 12.

However, TTNGL’s chief financial officer Sheldon Sylvester and NGC Group chairman Dr Joseph Ishmael Khan reminded the audience about the “cyclical nature of the business,” and sought to assure investors that the PPGPL was actively pursuing its “growth and sustainability agenda,” to improve the company’s financial performance.

Khan said, “The long-term sustainability of TTNGL, PPGPL and its subsidiaries is critical to preserving shareholder value and meeting our responsibility to contributing to the national development of TT and those territories in which we operate.

“PPGPL will continue its focus on strengthening its business model through the implementation of key sustainable strategies to preserve and enhance the value for all stakeholders.”

He said the TTNGL and PPGPL will continue to pursue their sustainability-based corporate strategy.

Sylvester said PPGPL’s performance was primarily a result of higher feedstock cost and lower NGL production coming out of reduced gas volumes to Point Lisas for processing.

“These were offset by improved sales volume and NGL product prices (25.6 per cent higher than 2021). Moving forward, optimisation of the gas supply stream provided to PPGPL to bolster NGL content remains a key priority for the NGC Group.”

The release said PPGPL’s 2022 performance was largely affected by geopolitical tensions and the covid19 pandemic, coupled with volatility in the energy commodity markets.

For 2022, PPGPL also recognised accounting adjustments, including changes in accounting estimates, decommissioning provisions, and amortisation of intangible assets.