Condensed Interim Financial Statements for the Nine Months Ended September 30, 2019
On behalf of the Board of Directors (‘Board’), I am pleased to provide the results of Trinidad and Tobago NGL Limited (‘TTNGL’ and ‘Company’) for the nine months ended September 30 2019. For the period, the Company recorded an after-tax profit of TT$80.1 million. Earnings per share for the period was TT$0.52 .
The supply imbalance of natural gas production in North America and the resulting excess supply of Natural Gas Liquids (‘NGLs’) supply in the market have continued to impact Mont Belvieu product prices adversely in 2019. As a result, product prices have on average been 29.7% lower than the corresponding period in 2018. This decline in prices, coupled with lower NGL production and an increase in feedstock costs has adversely impacted the performance of the Company’s underlying asset, Phoenix Park Gas Processors Limited (‘PPGPL’). As previously reported, NGL production has been impacted by a combination of both lower and drier natural gas volumes to Point Lisas for processing.
For Quarter 3 2019, PPGPL’s performance was also impacted by NGL sales volumes being shifted to later in the year, as well as the recognition of the accounting impact on the business of International Financial Reporting Standards (‘IFRS’) 9: Financial Instruments.
To mitigate the negative impacts of lower NGL prices and NGL volumes, PPGPL remained focussed on sustaining the high operating availability and reliability of its facilities and on prudent cost and cash management.
Additionally, during 2019 significant strides were made in PPGPL’s internationalisation thrust for additional value creation and diversification through exploring and exploiting organic and inorganic growth opportunities regionally. These efforts and expected to improve PPGPL’s earnings capacity over the medium to long term.
The Board of Directors of TTNGL remains cautiously optimistic about the future of the business as we navigate through the current environment. We thank all employees of the NGC Group for their continued support.