Condensed Interim Financial Statements for the Six Months Ended 30 June, 2020

The 2019 novel coronavirus disease (Covid-19) pandemic has ravaged the worldwide economy and reduced economic activity has resulted in changes to the energy supply and demand patterns of 2020. Economies across the world have suffered declines in gross domestic product during the first half of 2020, as compared to the corresponding year period prior. Uncertainties persist across all energy markets, including liquid fuels, Natural Gas, electricity, coal, and renewables. Crude oil prices averaged 35% lower than in 2019. Natural Gas Liquids (NGL) prices which correlate strongly with crude oil and refined product price, were also materially lower during the first half of the year.

For the six months to 30 June 2020, the volatility in energy commodity markets driven by the impact of Covid-19 resulted in the precipitous decline of Mont Belvieu (MB) product prices, and significantly impacted the performance of the Company’s underlying asset, Phoenix Park Gas Processors Limited (PPGPL). Recorded MB product prices were 44% lower than the corresponding period in 2019. The impact of the lower prices was mitigated by higher price differentials recognised during the year. The differentials were 34% higher than in 2019 and reflected PPGPL’s strong competitive position in the markets it serves, despite the impact of Covid-19. This is further strengthened by the continued strong demand for its products which have remained relatively steady since the onset of the pandemic. Additionally, the Company has benefited from a slight recovery in product prices, which has positively impacted its profitability in Q2 2020.

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