T&T NGL Ltd (TTNGL) has recorded after tax profits of $30 million for the nine months ended September 30, 2020.
While TTNGL third quarter (Q3) growth in net profit amounted to 132 per cent in comparison to its 2019 performance ($15.4million vs $6.7 million), it’s nine month profits were down 62.6 per cent when compared to the same period last year ($30 million vs $80.1 million).
In the company’s financial report, Chairman Conrad Enill said: “The 2019 novel coronavirus (COVID-19) pandemic continues to have a profound impact on the worldwide economy, and by extension, the global energy industry.”
Enill continued to note that the pandemic has negatively impacted crude oil prices, resulting in a sharp decline in demand for most petroleum products. He said that this caused producers to curtail production prompting deterioration in pricing experienced since Q1 2020.
During Q2 2020, Enill said that prices remained suppressed as the sustained impact of COVID-19 continued to negatively influence most petroleum-based economies globally. He added that forecasts remain subject to heightened levels of uncertainty as mitigation and reopening efforts related to COVID-19 continue to evolve.
In this period, Enill expressed that companies worldwide were forced to implement quick changes and adapt to new production schedules based on the slower international supply chain, reduced manpower at processing facilities and implementation of new COVID-19 safety measures, as the world grappled with finding ways to limit the spread of the disease.
According to Enill, Phoenix Park Gas Processors Ltd (PPGPL), TTNGL’s underlying asset and a member of the NGC Group of Companies, continued to implement precautionary measures to ensure the health and safety of its employees including remote working for office-based employees and contractors, and enhanced health and safety protocols for onsite critical employees who were required to work on location.
As a result, Enill explained: “TTNGL experienced the effects of the pandemic via PPGPL’s performance.”
Enill admitted that PPGPL recorded averages of 37.8 per cent lower product prices, 17.3 per cent lower processing volumes and 11.4 per cent lower NGL production than the same period in 2019.
He contended that these figures resulted in TTNGL recording after tax profits of $30 million.
However, Enill articulated: “The impact of lower NGL prices, volumes, and production, was mitigated by a 10.4 per cent improvement in NGL content in the gas stream and a 19.6 per cent higher price differential during the reporting period. This reflects PPGPL’s strong competitive position in the markets it serves, despite the impact of COVID-19.”
According to Enill, this position was further strengthened by the continued strong demand for PPGPL’s products, which has remained relatively steady since the onset of the pandemic.
He revealed that the demand for propane and butane (LPG) continued solidly, as the need for cooking gas remained relatively stable.
The NGL Chairman also announced that PPGPL’s North American NGL operations through its subsidiary Phoenix Park Energy Holdings, continued to deliver positive results, with earning s from this segment positively contributing to PPGPL’s results in 2020.
He highlighted: “This operating has resulted in the identification and development of new growth opportunities along the NGL value chain in North America and the Caribbean.”