Petrotrin: better times ahead

In a media statement yesterday, the company noted that while it was currently undergoing the annual audit of its financial results for the fiscal year ended September 30, 2016, preliminary unaudited results indicated a drop in revenue of TT$3.2 billion or 16 percent as compared to the previous year.

“Despite the drop in revenue, the unaudited net income improved by TT$286 million or 35 percent from a net loss of TT$819 million in 2015 to a loss of TT$533 million in 2016,” the company stated and noted that lower operating expenses were instrumental in reducing the loss from the prior year. Also contributing to the lower operating cost was a reduction in operating expenditure by $500Million from fiscal 2015 to fiscal 2016 which included a reduction in overtime.

There was also an increase in refinery utilisation from 55 percent in 2015 to 73 percent in 2016 and 15 percent increase in product sales to the local, regional and international market, the company stated.

“The Company continues to meet its debt service, required capital expenditure, and asset maintenance obligations with the support of its shareholder,” Petrotrin stated and noted that its Board, since assuming office one year ago, was taking the “necessary steps to realign cost and capital requirements given the projected lower revenue streams due to the fall in oil prices - which decreased by as much as 27 percent for fiscal 2016 as compared to 2015.” “The Company is in detailed discussion with all stakeholders with respect to increasing crude production from our Petrotrin Trinmar Marine Operations through a series of interventions aimed at unlocking oil volumes in that operation.

Other initiatives in our land operations include continued drilling and workover activities based on ongoing seismic data from recent surveys and a number of enhanced oil recovery initiatives based on steam and carbon dioxide injection,” Petrotrin stated.

“Petrotrin also expects to realise increased refinery throughput for fiscal 2017 which will result in further increased product sales and revenue to the business,” the company stated while reaffirming its commitment to focus on asset integrity improvements and enhanced safety performance.

“Petrotrin remains a most important part of the national economy of Trinidad and Tobago and continues steady improvements geared towards increasing our already strong contribution. Our efforts are to emerge from this difficult period in a fundamentally stronger position. We are confident of improved and sustained performance in the years ahead,” the company stated.

Meanwhile, Oilfields Workers Trade Union (OWTU), Chief Education and Research Officer, Ozzi Warwick, said the company’s top managers had to accept blame for the continuing decline in revenue saying there had not been a focus on ramping up oil production.

“Heads should roll for this dismal showing,” Warwick said, and noted that the union had presented a detailed plan to the Prime Minister regarding the way forward for the oil company