T&T NGL Ltd (TTNGL) has recorded an after-tax profit of $64.6 million for the first three months ended March 31.
This represents a 29.2 per cent improvement of $14.6 million over the comparable period in 2021, when a profit after tax of $50 million was recorded.
Earnings per share for the quarter were $0.42, compared to $0.32 for the corresponding period in 2021, which constitutes an increase of 31.3 per cent.
According to the financials and report from National Gas Company (NGC) Group Chairman Conrad Enill, this “marked improvement was driven by the solid financial performance” of TTNGL’s underlying asset, Phoenix Park Gas Processors Ltd (PPGPL).
“Increasing energy commodity prices, which continued from 2021 into 2022, translated to higher recognised Mont Belvieu natural gas liquids (NGLs) prices, which were 69.3 per cent above those of the corresponding period of 2021. This global upward trending of prices served to buoy higher profits for PPGPL,” a release from TTNGL stated.
According to the release the first quarter of 2022 marked a major milestone in PPGPL’s international growth strategy.
In January 2022, PPGPL acquired the Hull Terminal in Texas, United States.
Full integration of the new facility is expected in Quarter 2, 2022 with maximisation of throughput soon after.
On the acquisition, Chairman Conrad Enill noted that, “the development represents a yet another step in expanding the footprint of PPGPL’s asset base in North America built solid investments that continue to deliver significant economic returns.”
Furthermore, PPGPL’s North American-based subsidiary, Phoenix Park T&T Energy Holdings Ltd (PPTTEHL) continued to show a robust performance.
“Through the intentional execution of carefully managed contracts, PPTTEHL has delivered high trading volumes and improved margins and for the period contributed approximately six per cent of PPGPL’s profit after tax. Performance from this business segment is expected to positively contribute to PPGPL’s future earnings potential,” the release stated.
NGL sales volumes for the first quarter of 2022 were 16.1 per cent higher than in 2021.
The increase in sales volumes resulted from a draw on inventory due to higher customer demand. These higher volumes benefited from the robust NGL product prices during the quarter.
Commenting on the outlook for TTNGL and PPGPL, Chairman Enill stated, “We are cognisant of the uncertainties in the market and we will continue to focus on delivering exceptional results to our customers and stakeholders. Through astute management we remain committed to retaining markets and maintaining high levels of plant reliability and availability. These efforts, coupled with a resolute pursuit of value-added growth strategies along the NGL value chain locally and in select territories regionally and internationally, will underpin the development of long-term shareholder value.”