NGC


NGC group records $1.6 billion in profits

26 August

The  consolidated financial statement shows that the    National Gas Company of Trinidad and Tobago  recorded $1.6 billion in profits in its financial year ending December 31, 2024. The financial results represent a massive turnaround in the financial results after reporting a $1.3 billion loss for the same period in 2023, owing to impairment charges on Phoenix Park Gas Processors Limited (PPGPL).

The company indicated  that revenue from contracts with customers amounted to $22.4 billion, as compared to $19.07 billion for the same period in 2023. Gross profit amounted to $4.9 billion for 2024, as compared to $1.8 billion for the same period in 2023.

Impairment costs, which were at the centre of NGC’s negative financial results in 2023, amounted to $562.7 million. Last year, in a special interview  NGC leadership  including vice-president of finance Narinejit Paraig, president Edmund Subryan, then chairman Dr Joseph Ishmael Khan and vice-president of commercial Verlier Quan-Vie, told media  impairment costs, a depreciation in the value of an asset, in this case, PPGPL, comparable to the price at which it was bought, resulted in a $1.5 billion diminishing value in the asset’s goodwill.

When this was calculated in the company’s financial statements in 2023, it resulted in a loss after tax of $1.3 billion.

New chairman Gerald Ramdeen  reported  the turnaround in financial results was a reflection of the improvement of gross profit margins and a reduction in non-cash impairment charges. However, there could be trouble on the horizon, as several major contracts are due to expire in December this year. 

He  noted challenges with the company’s cash management.

“NGC is severely challenged in its cash management by the non-payment of TTEC receivables which stands at $6.3 billion and is estimated to grow by $1.2 billion per year if not addressed.”

 NGC has been actively pursuing  upstream  opportunities  to strengthen its position as the country’s sole aggregator of downstream natural gas.

“These include a 20 per cent participating interest as a state entity in each of the Charuma, Cipero and Rio Claro onshore blocks.”

 NGC also acquired a stake in the Cocuina exploration and production licence, operated by BpTT.

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