Smuggled fuel dents GuyOil sales in 2017

Dec 28, 2018 News

The state-owned Guyana Oil Company Limited (GuyOil) last year lost ground in its gasoline, thanks to among other things, smuggling.
In its 2017 Annual Report, it was reported that net profit has decreased almost 29 percent.
GuyOil competes mainly with SOL and Rubis.
The company’s business involves the importation, storage, distribution and marketing of motor gasoline, gasoil, kerosene, fuel oil, and Castrol lubricants.
The products are distributed through the large network in the petroleum business in Guyana, comprising 52 dealer-owned, dealer operated, and eight company-owned, company-operated service stations.
Its three terminals are at Adventure, Region Two; Providence, East Bank Demerara and Heathburn, Berbice.
Since the loss of the Venezuela supplies in 2015, Guyana had turned to the Petroleum Company of Trinidad and Tobabo (PetroTrin) refinery in Trinidad which is the main supplier of Mogas, Gasoil, Kerosene, and Jet A1; and Staatsolie Maatschappij, Suriname.
Lubricant products are being supplied by BP with the company the sole distributor of Castrol lubricants in Guyana.
According to the chairman, Mark Bender’s report, “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 Guyanese consuming public and industries.”
According to the sales revenues, in 2017 sales were $35.259B, compared to $31.939B in 2016, an increase of $3.32B or 10.39%.
Cost of sales was $30.465B compared to $25.889B in 2016, an increase of $4.576B or 17.68 percent.

GuyOil’s profits and sale of gasoline went down last year, according to the 2017 annual report.

With regards to the sales volumes, GuyOil managed to reach 1,309,093 barrels compared to 1,287,211 barrels in 2016, an increase of 21,882 barrels or 1.7 %.
The annual report disclosed that it should be noted that sales of motor gasoline, the company’s flagship product, decreased by 4.97%, with the company losing market share.
In its financial performance explanation, GuyOil said that it recorded a reduction in profitability in 2017 as compared to 2016.
The major contributory factor was the performance of motor gasoline, which accounted for 58 percent of revenues in 2017.
Gasoline sales and the associated gross profit both declined by 4.67 % and 21.5% respectively in 2017 as compared to 2016.
Gross profit for the year was $4.794B compared to $$6.05B for the previous year, a decrease of $1,256B or 20.76%.
Net profit for the year after taxation amounted to $1.849B compared to $2.609B for 2016, a decrease of $0.76B or 29.129%.