Majority state-owned ammonia company Trinidad Nitrogen (Tringen) declared after-tax profit of $1.45 billion in its financial year ended December 31, 2022, which was 56 per cent more than the company earned in 2021, according to the company’s audited financials.
Tringen’s 2022 financial report, which was signed by auditors EY on July 21, 2023, was laid in Parliament on September 11.
The company generated $5.18 billion in net revenue in the 12 months ended December 31, 2022, which was 66.5 per cent more than the $3.11 billion that was generated in 2021.
Last year was a profitable year for ammonia producers, as the price of the commodity rose sharply following Russia’s invasion of Ukraine in February. Ammonia prices peaked at US$1,635 per ton in June of 2022, and has since declined by nearly 47 per cent to US$870 per ton on July 27th, 2023, according to the farmdoc daily website.
Tringen is owned 51 per cent by National Enterprises Ltd (NEL) and 49 per cent Yara Caribbean (2002) Ltd.
NEL is listed on the Trinidad and Tobago Stock Exchange and is majority owned by the Government via Corporation Sole (66 per cent). Wholly state-owned National Gas Company owns 16.67 per cent of NEL and the balance is owned by about 5,000 individual and company shareholders, most of whom are resident in T&T.
Yara Caribbean (2002) Ltd’s ultimate parent company is Yara International ASA, the Norwegian chemical company that produces, distributes, and sells nitrogen-based mineral fertilisers and related industrial products.
Tringen paid out $855.96 million in dividends in 2022, with NEL receiving $436.54 million and Yara Caribbean (2000) Ltd receiving $419.41 million.
Tringen manufactures anhydrous ammonia at two independent production plants known as Tringen I and Tringen II. Tringen I was commissioned in 1977 and has an annual capacity of 500,000 metric tonnes. Tringen II started up in 1988, with a capacity of 495,000, according to the Ministry of Energy website.
All production from Tringen I and II are sold through sales agency agreements, with a related party, believed to be a Yara entity, on the open market.
Tringen is managed and operated by Yara Trinidad Ltd, a wholly owned subsidiary of Yara Caribbean (2002) Ltd under the terms of a management and operating agreement dated May 6, 1976, as amended.
The agreement expired on December 31, 2018 and was renewed for a further five-year period beginning on January 1, 2019.
According to notes in the financial statement, effective January 1, 2021, Tringen agreed to amend the terms of the agreement, whereby Tringen reimburses Yara Trinidad Ltd for all direct costs and 90 per cent of the total indirect costs incurred in carrying out its obligations.
“This agreement also allows Yara Trinidad Ltd to provide the services of its employees as it deems necessary for the management and operations of the company. The net reimbursements amounted to approximately $258.38 million,” according to the notes.
