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March 18, 2008 |
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PETROLEOS DE VENEZUELA: Books US$3.5 Bil. Net Profit in 2007 Petroleos de Venezuela SA and its affiliates reported US$99.23 billion in revenues in 2007, compared to US$99.26 billion in revenues in 2006, according to El Universal. Of the almost US$100 billion in revenues last year, domestic gross income from exports and the domestic market accounted for US$66.01 billion -- about 19.4% or US$10.74 billion greater than in 2006, El Universal says, citing Petroleos de Venezuela's 2007 Annual Report the Ministry of Energy and Petroleum submitted to the National Assembly. El Universal notes that the increase in the gross income wasn't reflected in net profits. According to El Universal, Petroleos de Venezuela's domestic profit decreased for the second straight year. In 2006 Petroleos de Venezuela's domestic profit declined 65.7%, in 2007 it dropped 8.6% to US$1.81 billion. Petroleos de Venezuela's domestic net profits over the last two years decreased 68.6%, or US$3.9 billion. Petroleos de Venezuela kept 2.74% of its domestic revenues in 2007, while it kept 3.58% of its domestic revenues in 2006, the report says. El Universal relates that Petroleos de Venezuela's 2007 Report indicates that operational costs increased 22.2% or US$1.8 billion to US$9.89 billion in 2007, compared to 2006. Expenses totaled US$19.02 billion in 2007. Petroleos de Venezuela's consolidated "sales, management and overhead expenses" increased 65% in 2007, from 2006, El Universal says. Petroleos de Venezuela's global assets increased 33% to US$107.34 billion in 2007, with a part of such growth due to a 272% increase in restricted cash and a 106% increase in long- term accounts to collect. The accounts comprise the outstanding bills related to energy accords for oil supply and the bills to collect from related bodies and they increased to US$7.5 billion in 2007, compared to US$3.65 billion in 2006, El Universal relates. El Universal notes that regarding liabilities, accounts payable to suppliers rose 64% to US$10.46 billion in 2007, from US$6.37 billion in 2006. Petroleos de Venezuela's total liabilities increased 95% to US$53.51 billion. After social expenses and income tax both in Venezuela and abroad, the consolidated net profits of Petroleos de Venezuela and its affiliates decreased 35.4% to US$3.51 billion in 2007, compared to from US$5.45 billion in 2006, accounting for 3.5% of gross revenues, El Universal states. Petroleos de Venezuela SA -- http://www.pdv.com/ -- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook was negative. |
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