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GuyOil imports less fuel in 2016, declares higher profits – Chairman credits lower acquisition costs, restructuring, inventory management
GuyOil Chairman Lance Carberry
GuyOil maintained its control of the fuel market in 2016, according to its annual report of that year.
The 2016 Annual Report of the State-owned Guyana Oil Company (GuyOil) is out, with Chairman of the Board of Directors, Lance Carberry, disclosing that the entity managed to complete its organization restructuring, aimed at improving efficiency, transparency and accountability. The report was laid last week in the National Assembly.
GuyOil competes with privately-run gas importers and is involved in the importation, storage, distribution, and marketing of gasoline, diesel, kero, Castrol lubricants and bituminous products.
GuyOil has the largest distribution network in the petroleum business in Guyana with 49 dealer-owned and eight company-owned service stations. It has three terminals – in the three counties.
According to the Chairman’s Report, the Petro Caribe Agreement with Venezuela, which was suspended in August 2015 as a result of the territorial controversy, forced GuyOil to turn to the Petroleum Company of Trinidad and Tobago (Petrotrin) for supplies.
As a result, in the latter part of 2016, the company signed a supply agreement with that Trinidad oil supplier.
“Despite the increasing manifestation of smuggled/illegal fuel and the increased number of licensed private importers, GuyOil maintained its dominant position in the Guyana market and continued to be the leader in stabilizing fuel prices, to the benefit of the Guyana consuming public and industries.”
GuyOil has been largely silent since 2015, after new management and a board were installed.
There were widespread accusations of wrongdoing, with various reports endorsing calls for restructuring. There were accusations of deals with transportation and even kickbacks for licences.
In all, the fuel transactions involved billions of dollars with Guyana heavily dependent on import oil for its fuel demands.
According to Carberry in the report, focus has been placed on the Finance and Audit Committee, the Tender Board, Marketing and Security Committee and the Management Committees of the board, which has led to prudent management.
“In 2016, there was the completion of the organizational restructuring of the company, aimed at improving efficiency, transparency and accountability.”
According to the report, for the last three quarters, the prices went up but remained stable.
Sales revenues were $31.939B compared to $36.407B, a decrease of $4.468B or 12.27 percent.
Volume sales were lower at 1,287,211 barrels compared to 1,319,603 barrels, a decrease of 32,392 or 2.45 percent. Gross profit was just over $6B compared to $5.27B in 2015.
After tax, the profits were better than the previous year at $2.609B compared to $2.314B.
The Board of Directors also comprises Oscar Phillips, Harryram Parmesar, Lawrence Paul, Berkley Wickham, Shaundell Brotherson and Shondel Hope.
GuyOil’s biggest seller remained gasoline with over 716,000 barrels sold compared to 723,000 barrels the previous year.
In 2016, GuyOil market share was the highest with 28.8 percent. It was followed by SOL at 21.8 percent; Rubis at 19.8 percent, and smaller operators who did a combined 29.6 percent.
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