– a 29.13 per cent decrease

THE Guyana Oil Company Limited (GUYOIL) recorded a net profit after taxation of $1.849B in 2017 compared to $2.609B in 2016. The sum represents a 29.13 percent decrease in net profit after tax, according to the company’s annual report (2017) which was laid in the National Assembly on Friday.

According to the report, the net profit before tax for 2017 was $3.104B compared to $4.456B in 2016 – a decrease of $1.352B or 30.34 per cent.

It was explained in the report that the reduction in profitability recorded in 2017 when compared to 2016, was a result of the performance of motor gasoline.
“The major contributing factor was the performance of motor gasoline, which accounted for 58 per cent of revenues in 2017. Gasoline sales and the associated gross profit both declined by 4.67 per cent and 21.5 per cent respectively in 2017, as compared to 2016,” the company explained in its report.

Despite a shortfall in profit, GuyOil said it continued to honour its corporate responsibilities during 2017 by contributing $6.240M to community-based organisations and institutions involved in sports, education, culture and charitable work.

It added too that “the management and staff were able to meet the strong competitive market challenges in 2017 by continuing to deliver consistent, reliable, efficient and cost-effective international quality services. The streamlining and restructuring of the company, which began in 2015, was completed and fully implemented in 2017.”

It said though it lost its market share with respect to its flagship product, motor gasoline, efforts have been made in 2018 to arrest the decline.

“The company’s drive to expand its market share for fuel and lubricants dictated an aggressive posture, with deliberate emphasis on aggressive pricing strategies and continuing staff training and development. In 2017, GuyOil introduced the environmentally friendly Ultra Low Sulphur Diesel (ULSD) to the Guyana market.

The Chairman of the Board of Directors, Mark Bender, in his report noted too that during 2017, GuyOil continued its programme to consolidate and strengthen its delivery capacity. Capital expenditure for the year was $777.502M.