May 2016 Financial News

NGL earns $402.8m after tax. After $804.2m loss in 2014

May 02, 2016

Investors in the historic initial public offering in T&T NGL Ltd (TTNGL) have earned total dividend per share for 2015 of $1.50—a yield of approximately 7.5 per cent. This includes a special interim dividend of $0.50 per share paid last December and a final dividend of $1.00 per share which will be paid next month.

TTNGL chairman Gerry Brooks described it as “one of the most attractive dividend yields available” on the T&T Stock Exchange (TTSE), reflecting the company’s healthy cash position and the resilient performance of its underlying asset, Phoenix Park Gas Processors Ltd. (PPFPL)

In his report to shareholders in TTNGL’s 2015 annual report, which has just been posted to the TTSE, Brook’s said the energy company’s financial performance reflected after tax earnings of $402.8 million, in sharp contrast to a loss of $804.2 million for the period ended December 31, 2014. 

“TTNGL’s earnings are derived from its 39 per cent shareholding in PPGPL,” he said.

While TTNGL chairman said while the company’s share of profit from its investment in PPGPL declined by 60.5 per cent from $345.3 million in 2014 to $136.3 million in 2015 primarily due to lower natural gas liquids (NGLs) product prices, its results were enhanced by several factors, including a partial reversal of $235.2 million of the impairment loss of $1.1 billion recognised in 2014.

“Management engaged an independent valuation expert to conduct an impairment assessment of the company’s 39 per cent shareholding investment in PPGPL as at December 31, 2015. The partial reversal was due to an increase in the recoverable amount, which was largely driven by a 27 per cent increase in the terminal value based on revised internal forecasts,” Brooks said.

Another factor was higher comprehensive income from exchange translation differences to the presentation currency which contributed $31.9 million to total comprehensive income compared to a loss of $51.1 million in 2014.

He said in 2015, and continuing in 2016, the company pursued a number of projects to grow its asset base, leverage and maximise the use of existing installed assets and increase earnings and shareholder value.

He said in the first quarter of 2015, PPGPL completed refinancing of its US-based debt on the local capital market, reducing its cost of debt from 5.52 per cent per annum to 2.04 per cent per annum. The refinancing was done as an unsecured facility with minimal financial covenants.

“This has positioned PPGPL to secure competitively priced debt financing to fund its growth projects over the next five years,” Brooks said.

He said for the remainder of this year, the NGC Group, of which TTNGL is a part, will be “completing, rolling out and executing its five-year strategic plan for the period 2016 to 2020.”

The plan is based on the strategic pillars of securing the current business, growing the group locally and internationally, developing organisational capacity within the NGC Group and strengthening national contribution, he said.

Source:
Trinidad Guadian
Monday May 2, 2016

http://www.guardian.co.tt/business/2016-05-02/ngl-earns-4028m-after-tax