Jun 2017 Financial News

TTNGL's APO now open

Jun 06, 2017

THE Additional Public Offering (APO) of shares in Trinidad and Tobago NGL Limited (TTNGL) is now open. The closing date for applications is June 28, 2017 at 4 pm. The National Gas Company of Trinidad and Tobago Limited (NGC) launched an APO of its 40,248,000 Class B Shares in TTNGL yesterday (June 5), at an Offer Price of TT $21 per share.

NGC said the Offer Price was determined based on the closing market price of the TTNGL Class B shares on June 2, 2017; the last trading day prior to approval of the Prospectus .

NGC reminded in his October 16, 2017 presentation of the 2016 - 2017 budget, Finance Minister, Colm Imbert, “indicated that the Government of the Republic of Trinidad and Tobago intended to make an offer for an additional sale of its shareholding in TTNGL through its nominee, NGC. The proceeds from this sale are intended to fund the Government’s Fiscal Programme.” Chairman of the NGC Group of Companies, Gerry Brooks, endorsed the share offer .

“The figures tell the story,” he said. “In 2016, TTNGL’s dividend yield was 7.14 percent — the highest dividend yield on the Trinidad and Tobago Stock Exchange .

TTNGL recorded after tax earnings of $56.9 million in Q1 (first quarter) of 2017. Earnings per share for the period were $0.37, compared to $0.20 for 2016 - an improvement of 85.0 percent. The Q1 after tax profits represents an 88.4 percent improvement when compared to the same quarter in 2016. In Q1 2016, a profit of $30.2 million was recorded.” Brooks also pointed out that these significantly improved profits were driven by improved share of profit from the underlying asset of TTNGL; Phoenix Park Gas Processors Limited (PPGPL). PPGPL was at “an advanced stage of implementation of its full portfolio of gas processing initiatives which were being pursued to diversify and enhance its earnings on a sustainable basis,” Brooks stated .

NGC said this, coupled with a sensible cost and cash management philosophy, created a robust cash and balance sheet position which enabled TTNGL to maintain its dividend payout ratio. At TTNGL’s second annual Annual General Meeting (AGM), held at Hilton Trinidad on April 25, 2017, Brooks stated that a decision was also made to pay dividends in either US dollars or TT dollars.

Upon completion of the Offer on June 28, 2017, and assuming a fully-subscribed Offer, public investors will hold 100 percent of Class B Shares of TTNGL. NGC said this shareholding will represent a 75 percent effective ownership interest in PPGPL by citizens of TT, which amounts to 29.25 percent effective ownership interest in PPGPL. NGC’s effective ownership of PPGPL will be reduced from 63 percent to 52 percent but will still maintain control of the PPGPL board.

Source:
Sasha Harrinanan
Newsday
Tuesday June 6, 2017

http://www.newsday.co.tt/business/0,244676.html