PetroSA has followed up last year's strong financial performance with an impressive R1,4-billion net profit - a 54% increase on the 2010/11 posting.
Cape Town, South Africa.
PetroSA has followed up last year’s strong financial performance with an impressive R1,4-billion net profit – a 54% increase on the 2010/11 posting.
The company also recorded a R14,4-billion turn-over for the 2011/12 financial year, compared to R10,5-billion in the 2010/11 period. Last year PetroSA recorded a R831-million net profit, following a R356-million net loss in the 2009/10 financial year.
During the period under review PetroSA also saw its cash reserves increase to R12,8-billion, up from R11,8-billion in the 2010/11 financial year. The good performance was attributable, in part, to an aggressive savings drive embarked on by PetroSA during the 2011/12 financial year.
PetroSA also continued to play a leading role in Broad-Based Black Economic Empowerment (B-BBEE). For the 2011/12 period, payments made to suppliers of goods and services totalled R11,30-billon. Of this amount, R2,86-billion – or 25% of the total procurement spend – went to B-BBEE companies with a minimum black ownership of 25,1%. The 2010/11 B-BBEE spend was R1,36-billion.
In the period under review, feedstock challenges resulted in the Mossel Bay Gas-To-Liquids (GTL) Refinery operating at moderated rates. However, PetroSA has embarked on initiatives to sustain the GTL Refinery. These include the flagship Project Ikhwezi, a five-well drilling initiative to tap into gas reserves in the company’s F-O field – located 39km south-east of the company’s F-A production platform – to sustain the refinery for at least an additional six years.
PetroSA’s Board of Directors took a Final Investment Decision in April 2011 for the company to embark on the project.
Gas production from the first well is planned for the second half of 2013.
“The gas reserve decline will be partially offset by Project Ikhwezi, our off-shore gas project in which significant progress has been achieved so far. In the year under review, long-lead items were ordered,” said Ms Nosizwe Nokwe-Macamo, the PetroSA Group CEO.
“The 2011/12 financial year was mostly beset with many challenges that included the feedstock issue, geopolitical tensions in the Middle East and North Africa and the threat of a global recession. In spite of all these challenges, though, this was still a good year for PetroSA,” she added.
Ms Nokwe-Macamo said PetroSA’s strong financial position will be reduced significantly over the next year due to an aggressive capital expansion programme that the company has embarked on. This includes Project Ikhwezi and the recently- announced acquisition of Sabre Oil and Gas Holdings Limited in Ghana, which gives the company access to the producing Jubilee field.
Mr Nkosemntu Nika, the PetroSA Chief Financial Officer, said over time the expansion programmes would improve the company’s balance sheet.
“Growth initiatives will include new upstream and downstream projects to complement the Sabre Oil and Gas acquisition which, together with a downstream entry, would provide immediate diversification of the income base,” he said.