NGC group records $1.6 billion in profits

Gerald Ramdeen -

The National Gas Company of TT has 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 in its consolidated financial statement 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 with NGC’s leadership which included vice-president of finance Narinejit Paraig, president Edmund Subryan, then chairman Dr Joseph Ishmael Khan and vice-president of commercial Verlier Quan-Vie, reporters were told 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.

Newly-minted chairman Gerald Ramdeen in his report said the turnaround in financial results was a reflection of the improvement of gross profit margins and a reduction in non-cash impairment charges.

But he noted that there could be trouble on the horizon, as several major contracts are due to expire in December this year.

He also 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,” he said.

He said NGC has been actively pursuing opportunities in the upstream 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.”

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