GUYOIL sees near half-billion-dollar shortfall in 2011

Oct 23, 2012 News

High acquisition prices, aggressive competition coupled with low margins were factors that contributed to a near half billion shortfall in the gross profit obtained by the Guyana Oil Company during the past year.
This state of affairs was highlighted in the company’s 2011 Annual Report which was yesterday circulated, among other reports, in the National Assembly.
The GUYOIL Report revealed that acquisition prices for refined petroleum products during the past year fluctuated between US$104.22 per barrel and US$138.77 per barrel with an average of US$124.40 per barrel. The pricing concerns were further compounded by what the Report describes as “aggressive competition in the market” which imposed great challenges on the operations of the company.
Its operation last year reflected a $0.495 B decrease in its gross profit indicative of a 14.61 per cent shortfall when compared to its 2010 figures. The gross profit for that period was $2.893B while in 2010 it was $3.388B.
The report details too that the net profit before taxation was $1.822B compared to $2.516B in 2010, reflecting a decrease of $0.694B or 27.11 per cent. A total of $1B was earned as net profit after taxation while in 2010 showed a higher sum of $1.422 B indicating a decrease of $0.422B or 29.7 per cent.
Owing to the price situation the noticeable deficit was reflected despite an increase of sales last year which amounted to $41.213B compared to $26.496B in 2010 representing an increase of $14.717B or 55.55 per cent.
Cost of sales, according to the Report, was in fact $38.319 B compared to $23.108B in 2010 an increase of $15.211B or 65.83 per cent.
It was revealed too that the volume of sales achieved last year was 1,277,380 barrels compared to 977,547 barrels in 2012 reflecting an increase of 299,833 barrels or 30.67 per cent.
GUYOIL is involved in the importation, storage, distribution and marketing of motor gasoline, gasoil, kerosene, fuel oil, Castrol lubricants and bituminous products. The products are distributed through the largest distribution network in the petroleum business in Guyana, comprising 36 dealer-owned and seven Company-owned service stations.
These are all serviced by its three terminal locations in Regions Two, Four and Six.
During the past year GUYOIL acquired fuel under the PetroCaribe Agreement from the Venezuelan’s refinery located in Curacao which is the local company’s main supplier. However, some of its supplies are secured from Trinidad.
According to the Report, too, “despite the challenges, GUYOIL continued to be the leader in stabilising the prices of fuel products to the benefit of the consuming public and industry.”
In an attempt to build and improve its operation the company continued in its bid to partner with BP/Castrol.
This, according to the Report, has allowed it to benefit from extensive training in marketing and product knowledge, thereby enabling it to maintain its market share in the lubricant business despite selling at significantly higher prices than the competitors.
It was outlined too that the company’s drive to expand its market share for fuel and lubricants along with retail pricing strategies coupled with vigorous marketing activities was the key factor contributing to its success in 2011.
However, the report did allude to its vigorous pursuit of trade debtors with the objective of collecting all debts. In fact legal action has been taken where necessary in an attempt to ensure that the company’s credit policy is being strictly adhered to.

Latest News

GUYOIL sees near half-billion-dollar shortfall in 2011

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Lewis, Gentle defend GTA One Guyana Open Tennis titles; each take...

Zion Hickerson scores one-year sponsorship with...

‘The women need a lot of work’: CWI...

Milerock face Winners Connection, Botafago clash...

GGA Declares 2024 a Landmark Year for Golf

Deochand, Narine hit centuries, Ganpat claims 8...

Features/Columnists

Jagdeo is skirting the issue

Breaking the Chains of Poverty: A need for political will

Barrels, boxes, and bills

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]

GUYOIL sees near half-billion-dollar shortfall in 2011

Share this:

Related

Similar Articles

The Glenn Lall Show | December, 2nd, 2024

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Features/Columnists

Publisher’s Note

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]