Guyoil profit grew last year despite challenges – chairman

The fuel business in 2010 was characterized by high acquisition prices, aggressive competition, high prevalence of smuggled fuel and low margins, the Chairman of the Guyana Oil Company, Dr Keshav Mangal, has said.

The Guyana Oil Company achieved a gross profit of $3.388 billion last year compared to $2.937 billion in 2009, a rise of 15%, according to its 2010 Annual Report laid in the National Assembly recently.

Net profit after tax was $1.422 billion compared to $1.093 billion in 2009, an increase of 30%. The report said that revenue for 2010 was $26.496 billion compared to $22.374 billion in the preceding year. In terms of capital expenditure, this amounted to $476 million for the year.

Dr Mangal, in the Chairman’s Report, said that the fuel business continued to be characterized by high acquisition prices, aggressive competition, high prevalence of smuggled fuel and low margins. “An aggressive competition and high prevalence of illegal fuel in the market imposed great challenges on the company during the year,” he said.

The reported noted that the company continued to acquire fuel under the PetroCaribe agreement from Venezuela while some fuel is also sourced from Trinidad. “Despite the challenges, Guyoil continued to be the leader in stabilizing the prices of fuel products, to the benefit of the consuming public and industry,” the report said.

Sales volume in 2010 was 977,547 barrels compared to 953,425 barrels in 2009, an increase of almost 3%.
Mangal said that while it is expected that 2011 would see positive economic growth, there are major challenges to be faced. “The world economy has not fully recovered from the global financial crisis of 2008/2009, with a number of countries still facing recession, OPEC member states would like to maintain the price of crude oil above US$70/barrel and this will result in high prices for refined products. Manage-ment faces great challenges ahead to avoid adverse effects on the company in 2011,” he said.

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