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Friday, May 23, 2025

TTNGL profits drop by 80%

by

555 days ago
20231115
Chairman of the NGC  Dr Joseph Ishmael Khan

Chairman of the NGC Dr Joseph Ishmael Khan

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.”


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