Trinidad and Tobago NGL : 15 Aug 2023 – Trinidad and Tobago NGL Limited – Unaudited Financial Statements for the quarter ended June 30th, 2023 (Summary)

SUMMARY

INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2023

CHAIRMAN'S STATEMENT

Trinidad and Tobago NGL Limited's ('TTNGL's'/ 'the Company's') performance up to June 2023 has proven to be subdued as the Company's underlying asset, Phoenix Park Gas Processors Limited ('PPGPL') navigates through operational matters and external market exigencies. For the six months ended 30 June 2023, TTNGL recorded an after-tax loss of TT$2.8 million (2022: TT$117.5 million after-tax profit). Loss per share for the review period was TT$0.02. This performance was primarily derived from TTNGL's share of loss from its investment in PPGPL.

For the first half of 2023, PPGPL recorded a loss after tax of US$0.8 million, which was primarily driven by lower sales volumes and lower recognised Mont Belvieu natural gas liquids ('NGLs') prices. NGL prices continued their declining trend in 2023 and were 37.7% lower than prices recognised in the comparable 2022 period. Prices were lower year-to-date primarily because of weaker winter NGL demand caused by a warmer

than expected US winter. Prices were further dampened by increasing US NGL production and falling exports. These factors have kept US NGL inventories above the five-year average and exerted downward pressure on prices. It is important to note that over 60% of PPGPL's sales revenue variance for 2023 was a result of lower product prices.

NGL sales volumes in the Trinidad market up to June 2023 were 39.7% below 2022, driven by lower production. NGL production from gas processing was lower by 35.1% compared to 2022 as a result of lower gas volumes received by PPGPL for processing. This was caused by extended downtime to facilitate planned maintenance turnaround at the facility, as well as the bypass of approximately 60 mmscfd of gas in quarter 1 to manage operational challenges on one (1) gas plant. This matter has since been addressed.

Performance at PPGPL's North American- based subsidiary, Phoenix Park Trinidad and

Tobago Energy Holdings Limited ('PPTTEHL') was impacted by warmer winter weather and even lower demand as the market transitions into the summer months. Nevertheless, sales volumes for the review period stood at 15,205 barrels per day, 3.8% above the 2022 level. Additionally, margins per gallon for this segment remain robust.

Uncertainties around gas supply, climate variability, shifting market demand, and the resulting negative eect on product prices were the key drivers of performance at PPGPL for the period, with their impacts expected to continue putting pressure on margins in the near term. However, PPGPL remains focused on rationalisation of costs, satisfying its customers, retaining its markets, and maintaining operating eciency as it strives to create and grow long-term shareholder value.

Dr Joseph Ishmael Khan, Chairman

SUMMARY STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME

TT$'000			Unaudited		Unaudited		Audited
			Restated				Restated
			Three	Three		Six	Six
			months	months	months	months		Year
			ended	ended		ended	ended		ended
			30 June 30 June	30 June	30 June		31 Dec
	2023	2022		2023	2022		2022
Income			$'000	$'000		$'000	$'000		$'000
Share of (loss)/profit from
investment in joint venture	(17,040) 53,320		(2,122)	118,432		168,053
Interest Income	29	20		55	53		96
Foreign exchange gain	-	248		-	248		130
Total (loss)/income	(17,011) 53,588		(2,067)	118,733		168,279
Expenses
Impairment loss	-	-		-	-		(562,448)
Legal and professional fees	(129)	(259)	(482)	(617)	(1,221)
Other expenses	(187)	(281)	(211)	(400)	(1,192)
Loss/(profit) before tax	(17,327) 53,048		(2,760)	117,716		(396,582)
Income tax (expense)/credit	-	(119)	-	(198)	2
(Loss)/profit after taxation		(17,327) 52,929		(2,760)	117,518		(396,580)
Other comprehensive income:
Exchangetranslationdifferences,netoftax	234	(111)	1,956	(882)	(5,974)
Other comprehensive income/(loss)		234	(111)	1,956	(882)	(5,974)
Total comprehensive (loss)/income			(17,093)	52,818		(804)	116,636		(402,554)
(Loss)/earnings per share	(0.11)	0.34		(0.02)	0.76		(2.56)
Basic (dollars per share)

SUMMARY STATEMENT OF FINANCIAL POSITION

TT$'000					Unaudited	Audited
						Restated
	30 June 2023	30 June 2022	31 Dec 2022
Non-current assets					$'000	$'000	$'000
Investment in joint venture	1,572,515	2,145,851		1,588,588
Total non-current assets		1,572,515	2,145,851		1,588,588
Current assets
Tax recoverable	314	341		314
Dividend receivable	7,897	-		-
Cash at bank and on hand	112,955	120,912		105,547
Total current assets		121,166	121,253		105,861
Total assets			1,693,681	2,267,104		1,694,449
Equity
Share capital	2,772,120	2,772,120		2,772,120
Translation reserve	147,208	150,344		145,252
Retained deficit	(1,229,253)	(658,215)	(1,226,493)
Total shareholder's equity		1,690,075	2,264,249		1,690,879
Current liabilities
Due to parent company/related party	88	110		142
Trade and other payables	3,518	2,705		3,428
Tax payable	-	40		-
Total liabilities		3,606	2,855		3,570
Total equity and liabilities		1,693,681	2,267,104		1,694,449

NOTES TO THE SUMMARY INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2023

1. Basis of preparation

These condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 - "Interim Financial Reporting". They do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited financial statements for the year ended 31 December 2022. These condensed interim financial statements have not been audited and were approved by the Board of Directors on 11 August 2023.

2. Significant Accounting Policies

The accounting policies applied in these unaudited condensed interim statements are consistent with those applied in the audited financial statements for the year ended 31 December 2022.

3. Currency

All monetary amounts are stated in Trinidad and Tobago dollars.

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SUMMARY STATEMENT OF CHANGES IN EQUITY

TT$'000			Share	Translation	Retained	Total
				capital	reserve	(deficit)/	equity
										earnings
Unaudited six months ended			$'000		$'000	$'000	$'000
30 June 2023
Balance at 1 January 2023	2,772,120	145,252	(1,226,493)	1,690,879
Loss for the year				-		-	(2,760)	(2,760)
Other comprehensive income				-		1,956	-		1,956
Total comprehensive loss				-		1,956	(2,760)	(804)
Dividends				-		-	-		-
Balance at 30 June 2023	2,772,120	147,208	(1,229,253)	1,690,075
Unaudited six months ended
30 June 2022 (restated)
Balance as at 1 January 2022 -
originally stated	2,772,120	153,860	789,655		3,715,635
Effect of restatement
(prior period error)				-		(2,634)	(1,487,988)	(1,490,622)
Balance at 1 January 2022	2,772,120	151,226	(698,333)	2,225,013
Profit for the year				-		-	117,518		117,518
Other comprehensive loss				-		(882)	-		(882)
Total comprehensive income				-		(882)	117,518		116,636
Dividends				-		-	(77,400)	(77,400)
Balance at 30 June 2022	2,772,120	150,344	(658,215)	2,264,249
Audited year ended
31 December 2022
Balance at 1 January 2022	2,772,120	151,226	(698,333)	2,225,013
Loss for the year				-		-	(396,580)	(396,580)
Other comprehensive loss				-		(5,974)	-		(5,974)
Total comprehensive loss				-		(5,974)	(396,580)	(402,554)
Dividends				-		-	(131,580)	(131,580)
Balance at 31 December 2022		2,772,120	145,252	(1,226,493)	1,690,879
SUMMARY STATEMENT OF CASH FLOWS
TT$'000							Unaudited	Audited
				Six months	Six months
							ended		ended	Year ended
					30 June		30 June	31 Dec
								2023		2022			2022
Cash flows from operating activities				$'000		$'000	$'000
Profit/(loss) for the period/year before taxation	(2,760)		117,716			(396,582)
Impairment loss							-		-			562,448
Dividends from joint venture							15,792		65,848			105,286
Interest income							(55)		(53)		(96)
Share of loss/(income) from
investment in joint venture							2,122		(118,432)		(168,053)
							15,099		65,079			103,003
Increase in dividend receivable				(7,897)		-			-
(Decrease)/increaseinamountduetorelatedparty				(54)		90			122
Increase in trade and other payables							90		1,110			1,833
Cash flows generated from operating activities				7,238		66,279			104,958
Taxation received							-		-			29
Taxation paid							-		(158)		(1)
Netcashflowgeneratedfromoperatingactivities				7,238		66,121			104,986
Cash flows from financing activities
Dividends paid							-		(77,400)		(131,580)
Net cash used in financing activities							-		(77,400)		(131,580)
Cash flows from investing activities
Interest and other investment income							55		53			96
Net cash generated from investing activities				55		53			96
Net increase/(decrease) in cash at							7,293		(11,226)		(26,498)
bank and on hand
Net foreign exchange differences							115		(123)		(216)
Cash at bank and on hand at 1 January				105,547		132,261			132,261
Cash at bank and on hand at end of period/year			112,955		120,912			105,547