HIGHLIGHTS

TTNGL HY2025

• Earnings:  Loss Per Share: $0.23, 176.7% decline from an EPS of $0.30
• Performance Drivers:
  • Higher Profits from PPGPL
  • Non-Cash Impairment Loss

• Outlook:
  • Potentially Increased Production
  • Resumption of Dividend Payments?

• Rating: Maintained at MARKETWEIGHT

 NEL 9M2025

• Earnings:  Loss Per Share of $0.31, widened from a prior LPS of $0.23
• Performance Drivers:
  • Significant Decrease on Fair Value of Investee Companies
  • Lower Dividend Income
• Outlook:
  • Potential Increase in Natural Gas Supply

• Rating: Maintained at MARKETWEIGHT

This week, at Bourse, we review the financial performance of Trinidad and Tobago NGL Limited (TTNGL) for the company’s fiscal Half Year ending June 30th, 2025, as well as National Enterprises Limited (NEL) for its fiscal nine-month period ending June 30th, 2025. Despite higher share of income from investee company, PPGPL, TTNGL reported a loss, driven by a non-cash Impairment charge. Similarly, NEL also reported losses due to a non-cash change in the fair value of assets as well as lower dividend income from investee companies. We discuss below.

Trinidad and Tobago NGL Limited (TTNGL)

TTNGL reported a Loss per Share (LPS) of $0.23 for the six-months ended 30^th June 2025, down from a previous Earnings per Share of $0.30 in HY2024.

Share of Profit from its Investment in Joint Venture, Phoenix Park Gas Processors Limited (PPGPL), increased from $47.3M in HY2024 to $50.8M (+7.4%) in HY2025. According to TTNGL, PPGPL’s performance was supported by: (i) improved uptime efficiency, (ii) increase in NGL content, (iii) ongoing cost rationalization, and (v) a marginal drop in gas volumes to Point Lisas.

Total income amounted to $50.8M in the current period under review. The major negative impact to TTNGL’s performance came from an impairment loss of $85.2M in HY2025. Legal and professional fees and other expenses amounted to a total of $0.8M from $0.7M in the prior comparable period. Resultantly, Total Loss before Tax was $35.8M relative to a Profit Before Tax of $46.7M in the prior year. Overall, Loss after Tax was $35.8M in HY2025, relative to a Profit After Tax of $46.7M in the previous reporting period.

Benchmark NGLs Prices Mixed

Average Butane prices increased marginally from US$0.96 per gallon in HY2024 to US$0.97 per gallon in HY2025, while average Propane prices gained 5.4% from US$0.79 per gallon to US$0.84 per gallon. Natural Gasoline dropped to US$1.42 per gallon in HY2025 from US$1.54 in the prior comparable period. Year to date, the weighted basket of NGLs has averaged US$1.13 per gallon, down roughly 5% from the prior comparable period.

Domestic Production, Exports Stable

Based on the latest available data, Production and exports of NGLs during the Jan-Apr period have been generally stable, with production and exports ranging between 2.0-2.2 million barrels and 1.75-2.0 million barrels respectively (excluding Jan-Apr 2023).

For the period Jan – Apr 2025, NGL production rose 2.5% to 2.01M BBLS from 1.96M BBLS in the prior comparable period. Exports of NGLs by PPGPL increased from 1.75M BBLS to 1.80M BBLS (+2.8%) in the current period. This reflects continued improvement following the dip in both production and export volumes in 2023.

Energy Sector Announcements

The following recent announcements should be supportive to energy production in the medium-to-long term:

• On July 11^th, Perenco T&T Limited finalized the acquisition of the Greater Angostura oil and gas assets from Woodside Energy, significantly expanding its operations and production footprint in T&T. The Greater Angostura fields currently produce approximately 50,000 barrels of oil equivalent per day (boepd), roughly 12% of the Country’s total gas output.
• On August 12^th, 2025, the Government of Trinidad and Tobago signed a production sharing agreement with the US energy giant, ExxonMobil which involves drilling of two exploration wells. If successful, ExxonMobil could invest up to US$21B in developing the block.

Cash Build Continues

TTNGL has not declared any dividend payments since 2022, largely as a result of unresolved legislative restrictions. This has been viewed by investors as counterintuitive, given that the Company’s cash position remains strong, with $177.9M in cash and near-cash resources, or $1.15 per share, its highest level in five years.

For HY2025, the non-cash impairment charge weighed heavily on results, but excluding this, operating earnings were $0.32 per share, 6.7% above HY2024 EPS ($0.30), yet still well below pre-2023 levels.

Overall, the sharp decline in TTNGL’s stock price to the current $2.70 from $20.62 in HY2022, could be largely attributable to an absence of dividends, stemming from legislative restrictions as opposed to weak operating results. There is currently no timeline for the resumption of dividends.

The company’s Book Value Per Share (BVPS) declined from $7.66 in HY2024 to $6.38 in the most recent period. After peaking at 1.6 times in HY2023, the Price-to-book (P/B) reached to a low of 0.4 times in HY2025, led by a weakening in the stock price.

The Bourse View

TTNGL’s challenges are mirrored in its stock price, which has fallen 43.4% year-to-date and down 91.1% since its peak price of $30.50 in April 2019.

Investor sentiment remains cautious, driven by concerns over the near-term energy production outlook and the continued absence of dividend payments. The Company’s ability to resume dividends, however modest, would be pivotal in restoring confidence in the stock. Accordingly, Bourse maintains a MARKETWEIGHT rating on TTNGL.

National Enterprises Limited (NEL)

For the nine months ended June 30^th, 2025 (9M2025), NEL reported a Loss per Share (LPS) of $0.31. This compares to an LPS of $0.23 for the same comparable period (HY2024). Notably, included in this loss per share was a non-cash change in fair value of assets amounting to $237.7M, a 5.8% reduction from 9M2024.

The Group’s Dividend Income declined to 48.5M from $110.3M, a 61.9% contraction. Other Income grew 13.9%, moving from $10.7M to $12.2M. Operating Expenses declined by 2.9% to $4.7M in the current period, from $4.8M in 9M2024. Operating Income fell by 54.1% to $50.8M in HY2025, mainly driven by the heavy decline of lower dividend income. NEL reported a Loss before Tax Expense of $182.0M for HY2025, increasing from a loss of $137.4M (9M2024). The Change in Fair Value of Assets amounted to $237.7M, a small improvement from $252.5M year-on-year. Tax expense increased by 3.0% to $3.5M. Overall, the Group recorded Total Comprehensive Loss of $185.5M, a 31.7% increase year on year.

Energy Prices Mixed

During the period October 2024 – April 2025 Natural Gas production in T&T averaged 2,557 mmcf/d, marginally lower than the 2,570 mmcf/d recorded in the prior comparable period. The average price of Natural Gas (based on Henry Hub pricing) saw a substantial improvement, increasing 42.6% from US$2.31/MMBtu for the period October 2023 – April 2024 to US$3.30/MMBtu in October 2024 – April 2025.

Domestic production of Natural Gas Liquids (NGLs) improved by 4.3%, from 3.4M barrels to 3.6M barrels over the comparable period. However, the average price of NGLs (propane, butane, and natural gas) decreased slightly by 0.4%, down from US$1.16/Gallon to US$1.15/Gallon in the prior comparable period.

NEL’s exposure to the Ammonia industry faced an upswing with both production as well as average price increasing YoY. For the period October 2024 – April 2025 production stood at 2.47 Million Tonnes (MT) at with an average price of US$473.91/Tonne. This compares to 2.27MT with an average price of US$471.93/Tonne a year ago. This represents an increase of 8.9% and 0.4% respectively.

In the same period, Liquefied Natural Gas (LNG) production rose by 5.0%, totalling 10.41M cubic meters compared to 9.2M cubic meters in the prior period.

NEL’s Book Value Per Share (BVPS) continued its downward trajectory on account of valuation impairments, falling from $7.57 in 9M2022 to $4.13 in 9M2025, reflecting the change in fair value of its investee companies. With the accompanying fall in share price, the Group’s price-to-book ratio fell from 0.7 times in 9M2024 to 0.5 times in the current period.

The Bourse View

NEL currently trades at a price of $2.05, down 26.5% YTD and trading at a market-to-book ratio of 0.5 times, in line with its four-year average.  The company declared a final dividend of $0.11 per share to be paid on September 29^th, to shareholders on record as of September 16^th 2025.

While the near-term energy industry outlook currently remains relatively subdued, over the medium-to-long term, several planned projects are expected to boost the energy sector. At a recent investor meeting, the Company indicated that it is evaluating all options to deliver increase value to shareholders, including but not limited to expanding its investee portfolio through new investments. On the basis of a muted energy industry outlook but tempered by relatively attractive valuation multiples, Bourse maintains its MARKETWEIGHT rating on NEL.

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