PetroSA bounces back from net loss; Announces R831 million net profit for 2010/11 financial year
Cape Town, 19 October 2011 – PetroSA, South Africa’s national oil company, has reversed last year’s negative annual results posting, recording R831 million in net profits and R10, 5 billion (R8 billion – 2010) in revenues, a 31% increase from last year.
This return to profitability is in stark contrast to the 2009/10 financial year, when PetroSA recorded a R356 net loss. During the 2010/11 period PetroSA also saw an 18% increase in its cash reserves to R11, 8 billion.
The increase in revenue was attributable mainly to volumes sold and higher crude oil prices. During the period under review PetroSA’s Gas-To-Liquids Refinery also experienced no major disruptions, resulting in a 25% increase in production volumes, compared to the previous year.
Payments to Black Economic Empowerment (BEE) suppliers equalled R1, 36 billion. BEE suppliers are companies with a minimum 25, 1% black ownership. Total expenditure on goods and services for the year was R7, 38 billion. The expenditure on BEE companies was 19% of the total PetroSA spend on procurement.
During the period the PetroSA Board advanced efforts to sustain the life of the GTL Refinery, by taking a final investment decision to search for additional gas reserves off the F-O field located 40 km south-east of the F-A production platform. Production of the gas field is targeted for 2013. The project has been christened Project Ikhwezi, a Nguni-language word for a morning star.
Yekani Tenza, the Acting President and CEO, explained that the name signals the beginning of a new dawn for PetroSA.
“Project Ikhwezi will also serve as an enabler of further development of gas prospects near F-O, which could provide a further five year life for the GTL Refinery to 2025,” Mr Tenza said.
PetroSA also continues to be committed to Project Mthombo. The company has intensified consultations with the shareholder and various stakeholders, particularly those in the petroleum sector. These have strengthened the original business case for Project Mthombo. A final decision on the project is expected before the end of the next financial year.
Benny Mokaba, the Chairman of the PetroSA Board of Directors, welcomed the results, which, he said, were achieved in an environment filled with many challenges. He added that the period under review provided PetroSA with a firm platform for future growth.
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