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GUYOIL records $4.2B after-tax profits for 2023: Annual Report
GUYOIL logo
Kaieteur News – The Guyana Oil Company Limited (GUYOIL), the country’s largest petroleum distribution company in its 2023 Annual Report has declared that it recorded a profit of $4.221 billion after taxes for that year which represents a 43% increase from 2022.
In the report, GUYOIL detailed that the net profit after tax of $4.221 billion is a $1.265 billion increase from 2022 which recorded $2.956 billion. The company stated that the higher net profit resulted mainly from higher gross profit.
As it relates to its gross profit for the year it was $10.404 billion compared to $7.088 billion for 2022, which is an increase of $3.316 billion or 47%. “Higher gross profit resulted from higher profit margin,” it noted.
For its net profit before tax, the document stated that for 2023 it was $7.333 billion, with overall expenses for that year increasing by $1.079 billion. The increase was primarily due to increased expenses, repairs and maintenance of bulk storage tanks, local freight charges, river dredging, product loss, provision for doubtful debt, advertising, events, professional fees and fringe benefits and salaries, GUYOIL detailed.
According to the document, GUYOIL’s revenue for the year was $51.243 billion compared to $61.935 billion for the preceding year, a decrease of $10.692 billion or 17%. The decrease resulted significantly from lower sales volume, it mentioned.
In explaining this, GUYOIL detailed the decrease resulted mainly from a reduction of 14% in sales volume which resulted from a shift in marketing and operational conditions.
“Cost of sales was $40.839 Bln compared to $54.847 BIn in 2022, a decrease of $14.008 BIn or 25%. The main contributory factors to the decrease were lower sales volume coupled with lower average FOB prices,” the company shared.
On the issue of sales volume, the company documented that in combined wholesale and retail sales volume totaled 1,460, 199 barrels compared to 1,703,220 barrels in 2022, a decrease of 243,021 barrels or 14%.
“While overall sales volume at the Retail Sector had increased to 398,871 barrels when compared to 389,072 barrels in 2022, sales volume at the Wholesale Sector had decreased to 1,061,328 barrels from 1,314,148. Due to operational changes, there were significant reductions in Diesel and Motor Gasolene sales volume of 143,034 barrels and 104,861 barrels respectively,” the Report noted.
Further, GUYOIL said that over the years the cost of kerosene had escalated causing more shifting to the consumption of LPG, thus a reduction in kerosene sale. “The reduction in Fuel Oil merely resulted from the change in the tendering process of the almost sole customer – DDL which led to the decision to remove the product from the portfolio,” the company explained.
Notably, the Annual Report reported that the dividends paid for the year ending December 31, 2023 was $575 million for share capital.
Commenting on its financial performance for that year, the company said, “GUYOIL’s 2023 performance was affected by the continued oil supplies dilemma which has put a strain on the supply chain and cost. Nevertheless, since the commercial activities of the business involve products of necessity and with its wide area network across the country, profit yield for 2023 was yet another record setting in the history of the company.”
Meanwhile, speaking on the company’s after-tax profit of $4.221B with an overall sales volume of 1,460,199 barrels, Chairman of GUYOIL, Paul Cheong said “This achievement was realized as volumes of petroleum products were equitably distributed throughout all administrative regions in Guyana, matching the demand for energy within all major growing sectors.”
The Chairman further noted that despite navigating through a challenging economic landscape, the company remains steadfast in its pursuit of excellence, leveraging our strengths and seizing emerging opportunities to drive sustainable growth.
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