TTNGL cuts losses to $119.4m

TRINIDAD and Tobago NGL Ltd (TTNGL) recorded a reduced after-tax loss of $119.4 million for the financial year ended December 31, 2024 – a marked improvement from the $547.7 million loss it posted in 2023.

The company, a subsidiary of the TT National Gas Company, attributed the narrowed loss to a stronger operational performance from its core asset, Phoenix Park Gas Processors Ltd (PPGPL), as well as higher product prices and improved production volumes.

However, the company’s results were affected by an unrealised impairment charge of $184.3 million.

This charge, TTNGL chairman Dr Joseph Ishmael Khan explained, reflected conservative assumptions about long-term gas supply, natural gas liquids (NGL) content and future product prices.

"It is important to note that the impairment is non-cash in nature and reflects conservative assumptions regarding long-term gas supply, NGL content and product prices," Khan said in his chairman’s report.

"There remains strong potential for positive revisions to these assumptions in future periods, particularly as new upstream gas developments materialise."

TTNGL’s share of profit from its investment in PPGPL rose sharply by 137 per cent to $66.6 million, up from $28.1 million in 2023.

PPGPL’s own profit after tax increased to US$25.3 million, from US$10.7 million the previous year.

The company cited improvements in NGL production, gas volumes to Point Lisas and a favourable ten per cent year-on-year increase in Mont Belvieu product prices.

Production of NGLs rose to an average of 16,086 barrels per day (bpd) from 13,785 bpd in 2023, supported by higher gas inlets and a ten per cent improvement in the NGL content of the gas stream.

Notably, propane production increased by 15.3 per cent, butane by 19.1 per cent and natural gasoline by 16.2 per cent.

North American subsidiary Phoenix Park Energy Marketing LLC also delivered a 21 per cent increase in trading volumes.

Although margins remained compressed, Khan said strategic initiatives were being advanced to optimise supply chains, enhance pricing structures and strengthen risk management processes to protect future earnings.

Khan noted that 2024 was another year of market volatility.

Global oil prices averaged US$81 per barrel, slightly lower than US$82 per barrel in 2023, while natural gas prices at the US Henry Hub fell to a record low of US$2.21 per million British thermal units (MMBtu).

Despite these trends, demand for NGLs remained firm in key markets, bolstered by strong import demand in Asia and Europe and infrastructure bottlenecks in the US.

In TT, the domestic economy expanded by 1.9 per cent, with inflation easing to 1.3 per cent. However, Khan cautioned that local unemployment edged slightly higher and geopolitical tensions abroad – notably in the Middle East and Europe – persisted, maintaining a complex global trading environment.

While TTNGL’s financial performance improved, it remained unable to declare a dividend for 2024.

"The issue affecting our ability to declare dividends persisted through 2024," Khan said. "However, TTNGL has made tangible progress in narrowing the pathways to resolution.

"We are committed to bringing closure to this matter in 2025, subject to requisite stakeholder and statutory approvals, and to restoring the company’s ability to distribute returns to shareholders."

Available cash strengthened to $165.6 million at year-end, positioning the company to meet future obligations and pursue value-enhancing investments.

Khan expressed cautious optimism for 2025, highlighting early signs of strengthening NGL prices and the government’s efforts to bolster domestic gas supply.

While acknowledging challenges such as the US’ revised sanctions on Venezuela – which affected gas supply projections from joint projects – Khan remained positive about TTNGL’s long-term prospects.

"We continue to take a long-term view, recognising that periods of volatility often present opportunities for disciplined, patient investors."