State-owned oil company, Petrotrin has seen a reduction in revenue by $3.2 billion over the last fiscal year. However, Petrotrin says it has managed to reduce the company's net income losses by $286 million.
The company issued the following statement today.
"Petrotrin is currently undergoing the annual audit of its financial results for the fiscal year ended 2016 September 30. Preliminary unaudited results indicate a drop in revenue of TT$3.2 billion or 16% compared to the previous year.
Despite the drop in revenue, the unaudited net income improved by TT$286 million or 35% from a net loss of TT$819 million in 2015 to a loss of TT$533 million in 2016. Lower operating expenses helped to
reduce the loss from the prior year.
The Company 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% for fiscal 2016 compared to 2015.
Notwithstanding these challenging market conditions, Petrotrin’s performance in fiscal 2016 demonstrated some noteworthy achievements.
Reduction in the Company’s operating expenditure by $500MM from fiscal 2015 to fiscal 2016 including reduction in overtime.
Increased refinery utilization from 55% in 2015 to 73% in 2016 and 15% 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 workover activities based on ongoing seismic data from recent surveys and a number of enhanced oil recovery initiatives based on steam and carbon dioxide injection.
Petrotrin also expects to realise increased refinery throughput for fiscal 2017 which will result in further increased product sales and revenue to the business. All this, as the Company continues to focus on asset integrity improvements and enhanced safety performance.
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."
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