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Friday, July 11, 2025

Petrotrin improves half-year performance

by

20150722

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."


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