NGC Group achieves despite challenging 2020
June 30th, 2021 | Related To: The National Gas Company of Trinidad and Tobago
The National Gas Company of Trinidad and Tobago Limited (NGC) has released its summary consolidated financial statements for the year ended December 31st 2020. Both industry-specific and systemic global challenges related to the COVID-19 pandemic impacted the performance of the Company and its subsidiaries (collectively, The NGC Group). However, a number of targeted interventions – both reactive and pre-emptive – have laid the foundation for recovery and transformation in the near to medium term. The NGC Group of Companies recorded a loss of TT$2.1B for the reporting period, as compared to a restated profit of TT$482M in 2019. However, included in this loss are provisions for exceptional items at a total cost of TT$4.2B that are specific to 2020 and should not impact the organisation to this extent in future years. It should be noted that The Group recorded a profit of TT$1.2B before exceptional items, interest and share of associate performance compared with TT$0.8B in 2019.
The Group’s business priorities and strategies for the year 2020 were informed by prevailing and emerging challenges, as well as the need to balance operational goals with green agenda imperatives. The rise of onshore gas, decline in reliability and competitiveness of local petrochemical plants, a global transition toward cleaner fuels and areas of value leakage in The Group’s current business model were all factors receiving careful attention as The Group mapped its way forward. The outcome was the acceleration of several transformative initiatives for a more sustainable future. Chairman Conrad Enill commented on The NGC Group’s performance for the year 2020:
“Notwithstanding a sustained period of extraordinary challenge and disruption, The Group was able to deliver on existing obligations, innovate and progress new initiatives. This signals that it is not just reinforcing its operational foundations but is acting decisively to grow both its business and broader developmental impact. The achievements and work of 2020 frame the trajectory of The Group’s growth path for 2021 and beyond.”
Amid a difficult year, there were several notable achievements which bolstered The Group’s performance, as well as its outlook and future sustainability. Among these were:
- The development of the Ruby Field in which NGC wholly owned subsidiary has a 31.54% interest
- The completion of the acquisition of Twin Eagle Liquids Marketing LLC, USA by Phoenix Park Gas Processors Limited (PPGPL)
- The execution of a gas sales contract with Primera Oil & Gas (Touchstone) for the purchase of all gas from the onshore Ortoire Block.
- Advancement of digital transformation initiatives within several areas of operations throughout The Group
- Live launch of National Energy’s ttEngage Online Investor Platform – a fully digital solution for business development in the energy-based downstream sector in Trinidad and Tobago
- Integration of the green agenda in support of the Paris Agreement and national climate action targets through strategic partnerships with academia and industry, education initiatives and support/exploration of renewable energy projects
- Progression of NGC’s MOU with Ghana through the execution of a contract to design, build and commission a Pressure Regulator Skid in Takoradi, Western Ghana
In addition, over the course of the year, The Group’s strategic focus moved from being production-driven to market-driven. The Group has acknowledged the accelerated transition away from fossil fuels and has embraced clean energy as a new direction for its business. A portfolio of Green Agenda investments and emissions reduction initiatives will assume greater importance as The Group targets a carbon-neutral future for its business and for Trinidad and Tobago.
The full consolidated financial statements are available on NGC’s website at www.ngc.co.tt