TTNGL profits jump to 8.2%
Trinidad and Tobago NGL Limited (TTNGL) has reported an after-tax profit of $253 million for the year ended 31 December, 2018.
This represents an 8.2 percent improvement when compared to 2017 in which $233.7 million was recorded.
In a statement, TTNGL said earnings per share increased to $1.63, a 7.9 percent improvement over the 2017 figure of $1.51.
It attributed the earnings to the efforts of Phoenix Park Gas Processors Limited (PPGPL) to maintain and where possible enhance margins in an environment that remains challenged.
TTNGL Chairman Gerry Brooks said the company continues to provide excellent returns for its shareholders and is an excellent investment for the people of Trinidad and Tobago.
The share of profit from TTNGL's investment in PPGPL improved by 12 percent to $242.6 million in 2018, compared to $216.6 million in 2017, mainly due to increased revenue derived from enhanced Mont Belvieu product prices which were 27.9 percent higher than 2017.
The benefit of these price gains was maximised by ensuring sustained operating uptime of over 97 percent for the year.
This is despite the lower natural gas supply to Point Lisas for processing, and the reduced Natural Gas Liquids (NGLs) content in the gas stream which tempered performance during the year.
PPGPL, the primary contributor to TTNGL’s improved performance, continued to streamline its cost structure while driving on-going cost management initiatives.
The increased use of technology including an NGC Group wide e-Auction platform now forms part of an overarching procurement strategy which is expected to bolster performance in an environment of likely lower NGL prices.
With the installation of its Condensate and Product Trading assets, PPGPL was able to diversify its income stream and enhance long-term investor value.
It also became the country’s LPG supplier following the closure of the Petrotrin refinery in November 2018. It has fulfilled this critical national role seamlessly and at short notice.
Based on the Company's results for the year ended 31 December, 2018, the Board of Directors is pleased to announce a final dividend of $1.00 per share.
Cumulatively, shareholders will enjoy a total dividend of $1.50 per share for 2018. The total return on the share for 2018 is 15.5 percent.