| – remained single biggest distributor Guyana imported 1.3M barrels of oil in 2013 from mainly Venezuela under the PetroCaribe arrangements.During that year, high acquisition costs, aggressive competition and low margins proved the going was tough for the state-owned Guyana Oil Company Limited (GuyOil).GuyOil imported 1.3M barrels of oil from mainly Venezuela in 2013, racking up $44M in sales.The situation would have expected to increase significantly this year when oil prices fell from US$135 per barrel then to now just over US$40.GuyOil was also taking oil from Trinidad. It owns seven service stations and has 36 dealer-controlled ones across the country with its price at the pumps below its privately-run competitors.In the Chairman’s Report, Dr Keshav Mangal, disclosed that the acquisition prices for refined petroleum products fluctuated between US$80 and US$135 per barrel that year, averaging US$120.In addition to Venezuela, GuyOil also sourced fuel from Trinidad.Sales in 2013 were $44.34B compared to $44.13B in 2012, an increase of $0.21B.In terms of volume sales, GuyOil sold 1,322,907 barrels compared to 1,334,910 in 2012, a decrease of 12,Authentic NFL Jerseys Wholesale,003.GuyOil’s gross profits in 2013 added up to $2.857B compared to $3.264B in 2012, a decrease of $0.407B or 12.47 percent.Net profit after tax was $0.474B compared to $0.951B in 2012, a decrease of $0.477B or 50.17 percent.According to the Chairman, while the sales volume and sales revenue in 2013 and 2012 were similar, the gross profit and net profit were significantly lower than in 2012.The low gross profit is explained by the very small margin the company traded at, while the low net after tax profit resulted because the company was required to provide Corporation Tax at two percent of turnover instead of 40 percent of net profit.“Had the company provided Corporation Tax at 40 percent of net profit, total taxation for 2013 would have been $550,513,448 compared to $886,801,100 provided for at two percent of the turnover,” the Chairman said in his report.The report was recently laid in the National Assembly.In 2013, GuyOil said it spent almost $590M to expand. The projects included the erection of an AVJET Fuel Handling Facility at the Providence Terminal and similar one, in another phase, at the Cheddi Jagan International Airport.Modernization of the Regent Street service station started in 2013 with plans in the year to expand the Providence Service station to increase fuel storage capacity and bigger space for vehicles.An interim dividend of $950M was declared by directors and paid on June 28, 2013.In 2013, GuyOil as a single company commanded 29 percent of the fuel market, selling 1,310,576 million barrels. Privately-owned service stations, however, stayed on top selling an accumulative 1,483,969 barrels.In 2012, GuyOil had tied with these controlling 31 percent of the market.According to the annual report, while Sol did better than Rubis in 2012, selling 1,118,412 barrels as against 497,542 for the latter, the gap has been closing.In 2013, Sol sold 959,006 barrels controlling 22 percent of the market while Rubis was 16 percent with 712,559 barrels.GuyOil is currently facing a major shakeup with a new Board of Directors named, chaired by Lance Carberry, a long-time board member. Its Managing Director, Badrie Persaud, was sent on leave in early July amidst a scandal where persons were unauthorisedly collecting fuel but the bills were sent to a number of ministries. |
