Lower prices and warm weather resulted in a $132 million decrease in profits for Trinidad and Tobago NGL Ltd.
In its financial statements released on Tuesday, the company reported an after-tax profit of $32.7 million for the nine months ending on September 30, as compared to $165.1 million for the same period in 2022.
“NGL prices continued the declining trend in 2023 and was principally due to increasing US NGL production and falling exports coupled with weaker NGL demand caused by a warmer than expected US winter,” said chairman Dr Joseph Ishmael Khan in his statement.
He said NGL prices were 36.6 per cent lower than prices the year before, and US NGL inventories are above the five-year average. The decline in demand that resulted caused downward pressure on prices.
Locally NGL sales volumes were 29.9 per cent lower because of lower production.
“NGL production from gas processing was lower by 21.4 per cent compared to 2022 and was a result of lower gas volumes processed by Phoenix Park Gas Processors Ltd (PPGPL) coming out of primary plant downtime to facilitate planned maintenance turnaround at the facility in May,” Khan said.
PPGPL, a subsidiary of NGL, recorded a profit after tax of US$12.8 million for the same period as compared to US$63.2 million for the year before.
Despite the reduction in profits, Khan said the company showed improvement from the first half of the year, when it recorded an after-tax loss of $2.8 million, as compared to $117.5 million in after-tax profit for the first half of 2022. He thanked investors for their continued faith in the company’s strategies.
“While PPGPL’s performance has improved and there is an expectation of a continuing upward trajectory the challenges of uncertainties around gas supply, climate variability and shifting market demand persist,” Khan said. “We remain resilient in delivering value to shareholders and are confident of the performance of PPGPL and TTNGL and our ability to navigate the road ahead.”