In a year of global economic upheaval and a difficult energy climate worldwide due to the Covid-19 pandemic, The NGC Group of Companies has recorded a loss after tax of $316.2 million for the first half of 2020. This represents a decrease of 296% or $477.3 million from the six-month profit for 2019 of $161.1 million. Revenues decreased by 22.9% or $1.74 billion from $7.61 billion for the six months ended June 2019 to $5.87 billion for the six months to June 2020.
Margins continue to be adversely affected by the volatility in the commodity markets with prices decreasing by 33%, 9% and 44% for Methanol, Ammonia, and Natural Gas Liquids respectively in the reporting period. Group Chairman Conrad Enill, noted that this decline in margins, as well as impairment provisions on assets associated with changes in market outlook, legacy issues, and non-payment for gas sales by NGC’s largest customer, have caused the overall results to be negative and contributed towards a tightening of NGC’s liquidity position. These results notwithstanding, The NGC Group retains an optimistic outlook for growth and profitability over the medium term. This is due to an uptick in upstream development activity, strategic partnerships and acquisitions, investments aimed at building the technology platform of the Group, and a sharpened focus on cost management and value generation initiatives.