The NGC Group Chairman Conrad Enill, admits that the energy sector faced several challenges in 2019, stating that, ‘The NGC Group has learned well how to weather challenging times and cycles of change, after 45 years of success in the energy business. However, you will find in those times of disruption, we have consistently forged opportunities for growth.’
He has reported that despite hard-hitting market conditions, The National Gas Company of Trinidad and Tobago Limited (NGC) recorded a Group profit after tax of $396 million. This represents a decrease of two billion or 69% below the 2018 profit after tax of $2.395 billion. This scenario was driven by external market forces that resulted in commodity price declines. Ammonia prices shrunk by 23% while methanol prices experienced a 31% reduction from 2018. Natural Gas Liquids (NGL) prices also were lower: propane and butane prices were 39.3% and 36.6% softer respectively than 2018, while natural gasoline was 5.9% lower than the prior year. At the same time, higher priced supplies delivered under new upstream gas purchase contracts resulted in an uptick in the weighted average cost of gas, further condensing sales margins. Nevertheless, the Group remains focused on the execution of its strategy and building a strong sustainable business, he noted.