TTNGL sees profit in Q1 2024 after losses in 2023

ON the heels of a total comprehensive loss of $551.4 million for the year ended December 31, 2023, Trinidad and Tobago NGL Ltd (TTNGL) on May 31 said it has recorded an uptick in its Q1 2024 financial performance.

Chairman of the NGC Group of Companies Dr Joseph Ishmael Khan, in a news release, said TTNGL’s condensed interim financial statement for the three months ended March 31, 2024 recorded an after-tax profit of $30.5 million.

On May 30 TTNGL said external market forces had subdued its 2023 financial performance.

It said its 2023 financial results reflect the performance of its underlying asset, Phoenix Park Gas Processors Ltd (PPGPL), which Khan said, “…was dampened by the challenges impacting global energy markets.”

He said that for the year ended December 31, 2023, PPGPL recorded a profit after tax of US$10.7 million ($72,583,642.60). This translated to a share of profit to TTNGL for 2023 of $28.1 million. After accounting for expenses, the company recorded a loss after tax of $547.7 million.

TTNGL was unable to declare a dividend payment to shareholders for 2023.

A significant factor impacting PPGPL’s performance was the recognition of an impairment charge of $573.6 million, he said.

Khan said external market forces also adversely affected PPGPL’s revenues and financial performance, with a warmer-than-usual winter in the US for 2023, combined with higher US NGL production and lower global demand, driving Mount Belvieu prices to 30 per cent lower than that of 2022. Compounding factors included the challenges stemming from lower NGL production coming out of reduced gas volumes in the domestic market, as well as extended facility downtime for maintenance activities and higher than estimated decommissioning costs, he said.

In sharing his outlook for 2024, Khan said that, “…NGL prices are expected to strengthen into 2024 and the energy sector will continue to stabilise through the medium to long term.”

Higher prices, growing demand

On May 31, Khan said TTNGL’s condensed interim financial statement for the three months ended March 31, 2024 recorded an after-tax profit of $30.5 million, which alone surpasses the profit recorded for the year 2023. This marks a significant improvement of $15.9 million or 108.9 per cent over the $14.6 million recorded for the corresponding period in 2023.

Earnings per share for the quarter were $0.20, compared to $0.09 for Q1 in 2023, and represents an impressive year-on-year increase of 122.2 per cent, Khan said.

Khan said PPGPL was the main driver behind the solid performance, which was bolstered by higher Mont Belvieu NGL prices, which rose by 13 per cent over the 2023 period due to growing global demand.

Additionally, the positive results are linked to improved NGL production from gas processing, which was 20.8 per cent higher than the volumes for 2023. This was made possible the larger gas volumes produced by PPGPL and higher NGL content in the natural gas stream.

Greater sales volumes and revenues, as well as higher volumes delivered from Atlantic LNG, also contributed to the robust performance.

In Q1 2024, the performance of PPGPL’s North American asset, Phoenix Park TT Energy Holdings Ltd (PPTTEHL) continued its upward trajectory. The subsidiary delivered high trading volumes and recorded improved profits resulting from its contracts with suppliers and customers of the NGL product.

Khan said it is projected that PPTTEHL will continue to positively contribute to PPGPL’s future earnings potential. He expressed his optimism regarding the trend in improved price forecasts, while building resilience in the face of changing energy markets.

“PPGPL is committed to its strategic direction, with a strong emphasis on growth, it is focused on maintaining safe operations with high levels of plant reliability and availability, meeting customer needs, and retaining market presence across all territories that are key to developing long-term shareholder value.”