Trinidad and Tobago NGL (TTNGL) earlier this week revealed that its first-quarter profit fell sharply by 85 per cent when compared to the same period last year.
For the first quarter of 2020, the company reported an after-tax profit of TT$6.93 million versus TT$45.8 million earned in the corresponding period a year ago.
In the report of TTNGL’s financials, Chairman Conrad Enill said: “These results were driven by a sharp decline in performance at PPGPL (Phoenix Park Gas Processors Limited) with the recognition of a lower share of profit from the company’s investment in the joint venture.”
The company’s financials indicated that revenue from its share in PPGPL fell from TT$45.6 million in Q1 2019 to TT$7.24 million in the quarter under review. Touted to have one of the largest natural gas processing facilities in Latin America and the Caribbean, PPGPL produces butane, propane, and natural gasoline.
TTNGL explained that the results were due to reduced Mont Belvieu product prices and the impact of COVID-19 on petrochemical producers at Point Lisas in Trinidad.
“…the turbulence in the energy commodity markets that closed off 2019 continued into 2020 and was exacerbated by the impact of the Coronavirus (COVID-19) pandemic…”— Chairman of TTNGL Conrad Enill
According to Enill. the COVID-19 pandemic has created a short-term demand collapse in energy prices across all markets.
For the three months to 31 March 2020, “the turbulence in the energy commodity markets that closed off 2019 continued into 2020 and was exacerbated by the impact of the Coronavirus (COVID-19) pandemic,” Enill said, adding that recorded prices were 32 per cent lower than the corresponding period in 2019.
The TTNGL chairman also pointed out that the effects of the pandemic has disrupted the planned performance and markets of the petrochemical producers at Point Lisas and the disruption has translated into lower natural gas demand and lower gas volumes through the PPGPL facility for processing.