NGC profits decline in 2015

Brooks said the Group’s after-tax profits slipped from $4,478 million in 2014 to $561 million in 2015. He said individual performances of the NGC’s subsidiaries varied. Parent company NGC reported an after- tax profit of $605 million compared to $3,084 million in 2014.

Phoenix Park Gas Processors Ltd (PPGPL) also reported a decline in earnings from $166.6 million in 2014 to $55 million in 2014 to $55 million last year.

Brooks said, “Both regressions in profitability were directly linked to depressed commodity prices.” He observed that in contrast, the National Energy Corporation generated profits of $67.9 million in 2015 which was eight percent higher than its profits in 2014. TT NGL also reported increased earning in 2015 of $402.8 million. Brooks said this was a significant improvement over a loss of $804.2 million which occurred in 2014.

He said in 2015, NGC recorded two significant impairment challenges.

The first related to NGC’s holdings in Angostura assets. The second came from the $1 billion related to the controversial Beetham Wastewater Reuse Project that was initiated under the former People’s Partnership (PP) government.

Brooks said the board believed this was, “an ill-conceived project inconsistent with NGC’s core business.” He added the relevant contract has been terminated and the project is being reviewed by the new board which was appointed last September.

Looking ahead, Brooks identified opportunities for joint venture projects in Africa, Latin America and Caricom; growing local markets and building capacity across the NGC Group as some of the initiatives which the Group is pursuing.