NGL boasts 'outstanding turnaround' in half-year performance

TT NGL Ltd (TTNGL) has seen an “outstanding turnaround” in the first half of 2024, compared to the same period last year, posting an after-tax profit of $46.7 million in its latest unaudited financial statements.

The company lost $2.8 million for the corresponding period in 2023, “(signifying) an impressive year-on-year improvement of $49.5 million,” chairman Joseph Ishmael Khan wrote in his report.

This was reflected in earnings of $0.30 per share, up from a loss per share of $0.02 for the corresponding period.

TTNGL had $139.1 million in cash at the end of June, up from $113 million in 2023.

“The driving force behind TTNGL’s strong performance was the enhanced profitability of its investment in Phoenix Park Gas Processors Ltd (PPGPL),” said Khan.

He said this achievement was primarily attributed to increased production of national gas liquids, higher sales volumes and improved NGL prices at Mont Belvieu (Texas).

“Enhanced NGL production was facilitated by a 4.4 per cent increase in natural gas volumes processed at Point Lisas in the first half of 2024, compared to 2023.

“Moreover, the gas stream’s NGL content saw a significant rise of 15.5 per cent over the previous year, a result of deliberate efforts by the (National Gas Company) to enrich gas supplies.”

NGL production saw a notable increase, he said, “even when accounting for the extended plant downtime experienced in the first half of 2023.

“Additionally, NGL volumes delivered from Atlantic LNG also increased by 3.2 per cent over the comparative period in 2023.”

NGL’s prices also rose considerably – 11.5 per cent – compared to last year. Khan said this was “driven mainly by increased global demand and strategic positioning by market participants for arbitrage opportunities.”

He said the combination of higher NGL production and increased sales revenues, supported by improved NGL product prices, “underscores PPGPL’s strong operational safety and its market leadership as the preferred NGL marketer locally and regionally.

“Moreover, PPGPL has maintained high levels of operational efficiency within its processing plants, complemented by a strong commitment to safe operations and effective cost management.”

In his outlook, Khan said the company remains “ever optimistic about the positive price forecasts, while PPGPL continues to monitor market uncertainties and implement value-added strategies.

“PPGPL is unwavering in its commitment to strategic growth, prioritising the following: safe operations; high plant reliability and availability; meeting customer needs and sustaining market presence across all territories. These efforts are critical to delivering long-term shareholder value.”