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Revenue increases but Petrotrin still suffers loss
Petrotrin recorded revenue of $11.3 billion for the six month period ending March 31 —a 9.6 per cent increase compared with the corresponding period in 2017.
The company’s audited financial statements show earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) increased to $984.6 million, or 4.4 per cent more than the 2017 result for the comparable period.
However, the state-owned energy company incurred a loss before tax of $513.8 million which translated to a loss after tax of $571.3 million.
Chairman Wilfred Espinet said the loss was largely due to a change in the accounting treatment of taxes related to losses in the Refining and Marketing division that resulted in a $218 million increase in losses, as well as a change in the accounting treatment of Interests cost on bank borrowing for the Ultra Low Sulphur Diesel (ULSD) project which increased losses by $94.3 million
He added: “For the period ending March 31, 2018, Crude Purchases—Cost of Sales—increased by $1,059 million over the corresponding period because of higher prices. This was partially offset by a $990 million increase in revenue from Refined Product sales, but the net effect was a $69 million loss.”
Petrotrin’s asset base decreased to $39.7 billion compared with $49.2 billion for the corresponding period in 2017, primarily because of the write down of its fixed asset balance for an impaired asset and the reclassification of previously capitalised borrowing cost on the ULSD project to expense.
Total debt to equity and current ratios as at March 31 2018 were 3.63 and 0.48 respectively, compared to ratios of 1.10 and 0.48 as at March 31, 2017.
“The Board remains committed to addressing all the issues confronting Petrotrin in the midst of challenging external circumstances. We continue with an aggressive programme to reduce costs and improve productivity and asset integrity in our drive for sustainability,” Espinet said
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