Latest update November 21st, 2024 1:00 AM
Skeldon Energy Inc. recorded $1.688B deficit in two years – AG Report
Skeldon Energy Incorporated (Skeldon Energy Inc. recorded $1.688B deficit in two years – AG Report)
Kaieteur News- The latest audits of Skeldon Energy Incorporated (SEI) for the years 2020-2021 reveals significant financial difficulties for the company.
“The financial statements have been prepared on a going-concern basis,” the Auditor General Report of 2023 said about the state enterprise.
According to the report SEI experienced a deficit of $490.985 million in 2020 and $1.198 billion in 2021. This indicates that the company’s financial health has worsened over the audited period. The report also highlights negative retained earnings, which were $1.216 billion in 2020 and increased to $1.588 billion in 2021. Negative retained earnings mean that the agency has lost more money than it has made over the years.
Additionally, the audit raised concerns regarding a $52 million advance payment made in March 2017 for boiler tubes from a South African supplier. Notably, the company could not provide a contract for this transaction, and attempts to contact the supplier have not been successful, leaving this payment in question.
According to SEI’s website, the company was established as a special purpose company in April 2015 to operate and maintain the energy assets of Guyana Sugar Incorporated, Guysuco’s Skeldon Estate.
SEI was initially designed to generate electricity from two sources: Heavy Fuel Oil (HFO) for its three Wartsila engines with a 10 MW total installed capacity and Bagasse for its 30 MW Steam/Thermal Energy Turbines.
(Skeldon Energy Inc. recorded $1.688B deficit in two years – AG Report)
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