TTNGL records 153.2% increase in profit
Written by Newsday Reporter on November 15, 2024
THE TT NGL Ltd has recorded a “remarkable” 153.2 per cent increase in profit after tax for the nine months ended September 30.
In its unaudited financial statements, published on the TT Stock Exchange website on November 14, TTNGL said this substantial improvement is primarily driven by the enhanced profitability of its investment in Phoenix Park Gas Processors Ltd.
The company posted an after-tax profit of $82.8 million, up significantly from $32.7 million in 2023. This equates to earnings per share of $0.53, reflecting an impressive growth of $0.32 compared to the prior year.
According to the financial statements, gas volumes directed to Point Lisas for processing averaged 1,062 million standard cubic feet per day, a slight increase over 2023.
“Natural gas liquids (NGL) production rose considerably, with a 12.8 per cent increase in content due to an optimised gas supply mix from the National Gas Company of TT Ltd (NGC). This increased NGL output, 33.3 per cent higher year-on-year, enabled PPGPL to capitalise on additional revenue from favourable Mont Belvieu (MB) NGL, which were ten per cent higher than the corresponding 2023 period,” TTNGL said.
Dr Joseph Ishmael Khan, in his chairman’s statement, said, “PPGPL’s continued focus on operational efficiencies, maximising facility uptime and optimising commercial agreements has been
instrumental in leveraging the current environment of strong NGL prices and demand forecasts.”
He added that PPGPL’s commitment to stringent safety practices and a resilient operational culture further strengthens its performance.
TTNGL’s North American subsidiary, Phoenix Park TT Energy Holdings Ltd (PPTTEHL), also reported robust results.
PPTTEHL achieved higher trading volumes and margins on its sales contracts, with NGL trading volumes up 23.8 per cent year-on-year.
As of September 30, TTNGL’s cash position remains robust at $152.3 million, compared to $127.2 million at the close of 2023, underscoring its solid liquidity and prudent cash management.
“Notwithstanding, the current regulatory requirements restrict dividend payments. We want to assure our shareholders that the board and management are actively pursuing strategies to address these regulatory requirements, working diligently toward solutions that would allow us to resume dividend payments.
“Although specific details are still under careful consideration, we remain optimistic that these efforts will yield a resolution that aligns with shareholder interests, enhances the company’s long-term growth potential and positively impacts share value.
“We acknowledge that many of our shareholders are understandably eager for a resolution to the current dividend restriction and the anticipated timeline for implementing a viable solution.”
Dr Khan said the company remains deeply committed to addressing this issue as a priority, knowing the impact it has had on shareholder value.
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