“T&T NGL Ltd (TTNGL) TTNGL reported earnings per share (EPS) of $0.54 for the halfyear period ended June 30, 2021 (HY 2021), a 500% increase from $0.09 reported in the prior comparable period. Share of Profit from its sole investee company, Phoenix Park Gas Processors Ltd (PPGPL), increased by $69.6M, from $14.9M to $84.5M primary driven by (i) an increase in Mont Belvieu prices and (ii) a 3.8% increase in NGL production due to 5% higher NGL content in feedstock from the Natural Gas Company. Interest Income declined 57.0% to $0.06M, while expenses increased 35.2% from $0.65M to $0.88M over the period. Profit before tax increased 477.2% year-onyear (YOY), from $14.5M to $83.7M.
“Overall, the group reported profit after taxation of $83.62M, a 475.5% increase compared to $14.53M reported in the previous period. NGLs Prices Recover TTNGL’s performance improved with recovering energy commodity prices, in particular the continuing recovery in prices of natural gas liquids, as measured by Mont Belvieu benchmarks. Average Butane prices increased 92% from $0.50 per gallon in HY2020 to $0.96 in HY2021. Average Propane increased 82% to $0.71 per gallon, while average natural gasoline increased 109% year-over-year to $1.40 per gallon. Notably, all average benchmark NGLs prices were also higher than the corresponding levels in HY2019.
“Stronger energy commodity prices would be welcome news to TTNGL and its investors, improving the earnings prospects of the company. Production and Export Declines During the period of January May 2021, production of NGLs declined 33.2% to 2.59 million barrels relative to 3.45 million barrels produced during the period of January-May 2020. Export of NGLs also contracted 26.6% from 2.97 million barrels during the period January-May 2020 to 2.18 million barrels during January- May 2021. Nevertheless, the group successfully renewed key sales contracts in the Eastern Caribbean market while maintaining consistent demand from local downstream partners. Overseas Assets Deliver According to TTNGL, PPGPL’s North American Subsidiary, Phoenix Park T&T Energy Holdings Ltd (PPTTEHL) continues to grow as the subsidiary experienced high trading volumes for the half-year period and continued to benefit from improved margins from sales contracts with its counterparties.”
