Directors’ Statement: It is with pleasure that the Board of Trinidad and Tobago NGL Limited (‘TTNGL’/’Company’) reports that for the six months ended 30 June 2022, the Company recorded an after-tax profit of TT$117.5 million. This represents a TT$33.9 million or 40.6% improvement over the comparable period in 2021, when a profit after tax of TT$83.6 million was recorded. Earnings per share for the half-year were TT$0.76 (2021 – TT$0.54) and represents a year-on-year increase of 40.7%.
TTNGL’s improved performance for the period was derived from its share of higher profit from its investment in Phoenix Park Gas Processors Limited (‘PPGPL’). This enhanced performance at PPGPL was driven by higher recognised Mont Belvieu natural gas liquids (‘NGLs’) prices, which were 66.7% above those of the corresponding period of 2021 and continued the trend of increasing energy commodity prices which commenced in 2021. Crude oil prices, which are closely aligned to NGL prices, have seen dramatic changes in its supply throughout the pandemic. The reduction in crude oil production from major oil-producing companies has been slow to rebound after cutting of staff and decommissioning production facilities during the pandemic slump. Russia, which accounts for approximately 10% of the world’s oil supply, is being sanctioned due to its invasion of Ukraine and this has compounded price pressures on an already tight global supply market.
For the half-year, NGL production from gas processing was lower by 5.0% compared to 2021 because of lower gas volumes received at PPGPL for processing (2022: 1,060 million standard cubic feet per day (‘mmscfd’); 2021: 1,080mmscfd). This reduction was attributed to downtime by downsteam petrochemicals plants for maintenance activities during the period. NGL sales volumes for the six months were 23.3% higher than in 2021 due to a draw on inventory because of higher customer demand. These higher sales volumes benefitted from the robust NGL product prices during the period.
In January 2022, PPGPL completed the acquired of the Hull NGL Terminal in Texas, United States. This new facility is now fully integrated with expansion planned to fully maximise its potential. This acquisition fully aligns to the company’s NGL business growth strategy and futher establishes its North American-based subsidiary, Phoenix Park Trinidad and Tobago Energy Holdings Limited (‘PPTTEHL’), as a key supplier of NGLs to customers in the markets it serves. The footprint of this facility allows for significant further asset expansion in the future. Performance from this business segment is expected to positively contribute to PPGPL’s future earnings potential.
Based on the Company’s results for the six months ended 30 June 2022 and its current cash flow position, the Board of TTNGL is pleased to declare an interim dividend of TT$0.35 per share for 2022. This dividend is to be paid on 14 September 2022 to shareholders on the Register of Members as at 26 August 2022.
PPGPL continues to focus on operating efficiencies and optimisation of commercial agreements despite challenges of low natural gas volumes to Point Lisas for processing. This focus, together with continued favourable NGL prices, its robust efforts to satisfy its customers and grow and retain its markets, will underpin the development of sustainable long-term shareholder value.
