PetroSA rig
searches for oil
Cape Town, South Africa — 18 October 2012 – The group profit of PetroSA “’ South Africa’s national oil company “’ surged 54% to about R1.3 billion in the 2011-12 financial year‚ says CEO Nosizwe Nokwe-Macamo.

Presenting the state-owned company’s annual report to Parliament‚ Nokwe-Macamo said revenue had increased by 37% to R14.444 billion, but the cost of sales had dropped to R8.855 billion from R11.941 billion, reports Fin24.

This meant gross profit had increased by 17% to R2.503 billion.

Nokwe-Macamo said the rise in revenue was due in part to a 2% increase in sales volumes. This‚ she said‚ was slightly offset by the cost of sales increase due to increased products purchased.
The rand’s weakness both helped and hindered the company‚ increasing both the value of sales and costs.

However‚ operating expenditure declined from R1.904 billion in the 2010-11 financial year to R1.675 billion due to the freezing of posts and other cost-saving measures.

Investment income dipped to R840 million from a previous R860 million due to lower interest rates, despite higher cash reserves.

A contract cancellation fee of R19 million caused fruitless and wasteful expenditure to rise to R35.8375 million in the 2011-12 financial year, compared with R21.619 million in the previous 12 months.

Nokwe-Macamo told Parliament’s energy committee that the group was looking at extending the life of the Mosgas field until at least 2020; that the company wanted to be actively involved in exploration for shale gas in the Karoo; and that the study of the building of a refinery in the Eastern Cape would be finalised by end of December.

Source: Fin24. For more information, click here.