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Trinidad and Tobago NGL Ltd (TTNGL) has posted an after-tax profit of $129.5 million for the year ended 2019. This represents a 48.79 per cent decrease from the net profit of the corresponding period of $252.9 million.

In the company’s financial statements, the chairman Conrad Enill indicated that the share of profit from the company’s investment in its underlying asset Phoenix Park Gas Processors Ltd (PPGPL) was $90.3million compared to $242.6 million in 2018.

“Performance at PPGPL was adversely impacted by lower Mont Belvieu product prices, coupled with lower Natural Gas Liquids (NGL) production and an increase in feedstock costs.”

Enill also remarked that the decline in prices was driven by the continued supply imbalance of natural gas production in North America and the resulting excess supply of NGL supply to the market.

According to the chairman, this was combined with geopolitical factors such as the trade war between the United States and China resulting in product prices being 23.4 per cent lower than in 2018.

He commented that NGL production from gas processing decreased by 9.5 per cent from 2018 and was a result of a combination of both lower and drier natural gas volumes to Point Lisas.

Enill disclosed that PPGL’s earnings for 2019 were also impacted by the recognition of the accounting impact on the business of international Financial Reporting Standards (IFRS) 9 and 16: Financial Instruments and Leases respectively.

“To mitigate these negative impacts, PPGPL remained focused on maintaining its competitiveness in its core Caribbean markets, sustaining the high operating availability and reliability of its facilities (greater than 99 per cent) and on prudent cost and cash management.”

Additionally, Enill expressed that significant strides were made in securing new sources of revenue from condensate processing and from the acquisition of new assets.

Moreover, Enill argued that during 2019 PPGPL progressed its product trading operation and ended the year close to finalising the acquisition of NGL assets based in North America.

“This acquisition will align to PPGPL’s internationalisation thrust for shareholder value creation and diversification through exploration of all relevant growth opportunities along the NGL value chain.”

According to Enill, TTNGL’s management is currently evaluating the potential impact of COVID-19. He remarked that the effects of the virus on the local and global financial and economic markets are highly uncertain and cannot currently be reliably predicted.

The potential impact of the disease will be assessed and reported on in future periods, according to Enill.