In spite of low oil prices, Petrotrin is reporting improvements to its performance for the third quarter for the fiscal period 2014-2015.In a release, Petrotrin said financial statements for the nine-month period ending June 30 2015 recorded a contribution of approximately TT$2.5 billion to its shareholder, the government, in the form of taxes and benefits.
Direct taxes and fees amounted to TT$1.3 billion, while indirect taxes and benefits were placed at TT$1.2 billion.Petrotrin did indicate at the end of the second quarter, that despite a continuing adverse commercial environment, the company was on course with its mission to maximise its long-term value and return on its assets.
Petrotrin's president Khalid Hassanali said he was encouraged as the company is in the process of putting in place measures to ensure adequate access to capital in the coming years to meet its obligations and fund expanded drilling.He commended management and employees for achievements to date and renewed the call for a commitment to excellence and productivity across the board to ensure that the company is positioned for profitable operations in the future.
In the release, Petrotrin said, "As global oil prices trended downwards, reflecting a nearly 50 per cent decline since the same period last year, Petrotrin's board and management drove the implementation of strategic decisions streamlining operations so that the company would remain sustainable and profitable in an expected low oil price scenario."
It said these directions included prudent budget management, measures to improve refinery margins and noted successful efforts to stabilize the decline in production."The company was able to continue its substantial contributions to the national economy, despite recording an accounting loss for the period. This third-quarter accounting loss is largely due to the crude oil and refined product inventory valuation write downs of approximately TT$1.4 billion consequent upon the fall in oil prices."
Senior Analyst on Oppenheimer's Emerging Market's Trading Desk Omar Zeolla, commenting on Petrotrin's operations, said, "While results for the first nine months of the 2015 fiscal year ending June 2015 are still being affected by the weak performance of the first quarter of the fiscal year, the last two quarters have shown a return to financial performance similar to previous years. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) margins are back to the 11 per cent to 12 per cent range and free cash flow has been positive for the last two quarters."