State-owned National Gas Company of T&T Limited (NGC) has suffered a $3.9 billion decline in profit for the year ended December 31, 2015. A summary of the company’s consolidated financial statements show a profit of the year of $561 million, considerably than the profit of $4.5 billion for 2014.
Chairman Gerry Brooks said the company’s performance was affected by the decline in energy prices with ammonia and methanol dropping by 18 per cent and 30 per cent respectively, while oil and gas prices declined by 40 per cent. As a result, he said, revenues and gross profit declined by 29 per cent and 46 per cent respectively to $16.6 billion and $4.6 billion.
“The decline in oil and gas prices impacted the recoverability of the company’s investment in Block 2C and Block 3A assets which led to an impairment loss being recognised in the amount of $1.3 billion. This loss is non cash and may be reversed with the improvement in prices,” Brooks said.
In his report to shareholders, the chairman said after careful review NGC terminated the Beetham Wastewater Reuse Project and an impairment of $943.7 million, the total cost of the project, was incurred.
“This matter is being vigorously pursued legally,” he said.
Brooks said a 2016-2020 Strategic Plan is in final stages of development and is expected to be rolled out in the third quarter of this year. He added that NGC is being re-engineered to “navigate and succeed in this new, more complex environment.”
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