Lower sales has led to lower returns for TTNGL and Phoenix Park Gas Processors Ltd (PPGPL) so far in 2023.
Trinidad and Tobago NGL Ltd has recorded an after-tax profit of $32.7 million for the nine-month period ended September 30, 2023. The company’s profits were 80 per cent less than the $165.1 million it declared for the same period in 2022.
The company said the performance for the period January 1 to September 30, 2023 still represented a marked improvement over the first half of the year. According to the company’s financial report for the period, earnings per share for the period were TT$0.21, compared to TT$1.07 for the corresponding period in 2022, a decrease of TT$0.86.
The report also stated that PPGPL recorded a profit after tax of US$12.8 million compared to US$63.2 million for 2022.
This performance, the report stated, was determined by lower sales volumes and lower recognised Mont Belvieu natural gas liquids prices. Natural gas liquids (NGL) prices continued the declining trend in 2023. Prices were 36.6 per cent lower than prices recognised in the comparable 2022 period, and this was principally due to increasing US NGL production and falling exports, coupled with weaker NGL demand caused by a warmer than expected US winter.
Chairman Dr Joseph Ishmael Khan said, ‘The resulting higher US NGL inventories remains above the five-year average and exerted downward pressure on prices. It is important to note that 60 per cent of PPGPL’s sales revenue variance for 2023 was a result of lower product prices.”
Performance at PPGPL’s North American-based subsidiary, Phoenix Park Trinidad and Tobago Energy Holdings Limited (‘PPTTEHL’) was also impacted by warmer winter weather and lower demand for growing US inventories, the report said. However sales volumes for the review period stood at 15,089 barrels per day, 7.8 per cent above the 2022 level and was a key driver for improved performance in 2023.
In the local market, NGL sales volumes in the Trinidad market were 29.9 per cent below 2022 and driven by 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 PPGPL coming out of primarily plant downtime to facilitate planned maintenance turnaround at the facility in May 2023.
Despite the reduction in sales and returns, Khan was optimistic about a rebound in fortunes.
He said, “While PPPGL’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. PPGPL remains focused on its core values and the creation of long-term sustainable growth. 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.”