Trinidad and Tobago NGL Limited recorded an after-tax profit of $83.6 million for the first half of 2020.
This represents a 476 per cent increase in its performance compared to the same period in 2020
In its summary financial statement for the period, chairman Conrad Enill said TTNGL’s upturn in profitability relates directly to the performance of its underlying asset Phoenix Park Gas Processors Limited (‘PPGPL’).
He explained the asset’s performance was buoyed by increased Mont Belvieu natural gas liquid (NGL) prices, which were 103.8% higher than last year’s corresponding period.
The company expects that favourable NGL prices and demand will continue for 2021.
Enill said, “Moreover, through the deliberate efforts of The National Gas Company of Trinidad and Tobago Limited (‘NGC’), PPGPL benefited from a 5 per cent increase in the NGL content of the gas stream. This catalysed a 3.8 per cent increase in NGL production from PPGPL’s gas processing operations.”
It was also explained that PPGPL’s performance was not solely based on external forces. PPGPL’s improved profitability was attributed to intentional execution of its marketing and product trading strategies. The company pointed to the renewal of sales contracts within the Eastern Caribbean market as key to its success.
Phoenix Park Trinidad and Tobago Energy Holdings Limited (‘PPTTEHL’), also reaped benefits for the company. It has delivered significant economic returns with its subsidiary’s sales contracts yielding improved profit margins, based on the high trading volumes.
The company said for the half year period, PPTTEHL contributed approximately 7 per cent to PPGPL’s after tax profit.
The company said it maintains a positive outlook for PPGPL despite the current short-term challenges of reduced volumes of natural gas for processing and the impacts to energy markets and economies from the fallout of the pandemic.
Chairman Enill said “PPGPL will continue to build its resilience by strengthening its operational efficiencies, focusing on its growth strategy and deepening value creation tactics to secure long-term profitability and sustainability.”