Nov 2016 Financial News

Petrotrin records $533m loss

Nov 23, 2016

State-owned Petrotrin has recorded a loss of $533 million this year which is an improve­ment from $819 million last year. Preliminary unaudited financial results for the financial year end­ed September 30 show a drop in revenue of $3.2 billion or 16 per cent compared to the previous year. 

The energy company’s unaudited net income improved by $286 million or 35 per cent which was the result of lower operating expenses. A media release from the company stated that it continues to meet its debt service, required capital ex­penditure and asset maintenance obligations with the support of its shareholder.

“Since assuming office one year ago, the new board of directors is taking the necessary steps to realign cost and capital requirements given the projected lower revenue streams due to the fall in oil prices—which decreased by as much as 27 per cent for fiscal 2016 compared to 2015.”

Petrotrin’s performance is claim­ing some noteworthy achievements during the fiscal year. These include:
• Reduction in operating expend­iture by $500 million from fiscal 2015 to fiscal 2016 including re­duction in overtime.
• Increased refinery utilization from 55 per cent in 2015 to 73 per cent in 2016 and 15 per cent increase in product sales to the local, regional and international market.

“In addition, the company is in detailed discussion with all stake­holders with respect to increasing crude production from our Petrotrin Trinmar Marine Operations through a series of interventions aimed at un­locking oil volumes in that operation.

“Other initiatives in our land op­erations include continued drilling and work-over activities based on ongoing seismic data from recent surveys and a number of enhanced oil recovery initiatives based on steam and carbon dioxide injection.”

The company also expects to real­ise increased refinery throughput for fiscal 2017 which will result in further increased product sales and revenue to the business. Petrotrin also con­tinues to focus on asset integrity improvements and enhanced safety performance.

The release continued: “Petrotrin remains a most important part of the national economy of Trinidad and Tobago and continues steady im­provements geared towards increas­ing our already strong contribution.

“Our efforts are to emerge from this difficult period in a funda­mentally stronger position. We are confident of improved and sustained performance in the years ahead.”

Source:
Trinidad Guardian
Wednesday November 23, 2016

http://www.guardian.co.tt/business/2016-11-23/petrotrin-records-533m-loss