The half year report 2017 of Staatsolie Suriname gives insights in the operational performance and financial conditions of the company.
Crude oil production and refinery output
• First half 2017
In the first half of 2017, the average price of our Saramacca Crude was $44.48 per barrel. We experienced challenges in ramping up production, achieving a total crude production of 2,953,463 barrels, equating to 16,319 barrels per day. Wells drilled in 2016 and in early 2017 were at the edges of our production fields and had not reached the desired level of productivity. This was due to factors such as lower pressure and increased oil water contact, fewer wells drilled than forecasted and a lower contribution from new oil wells.
• Second Quarter
In the second quarter of the year we exceeded our high-end product target by 35%. Based on our achievement of 1.12 million barrels in the first half of the year and a utilization rate of 66%, we anticipate achieving output of 2.5 million barrels of high-end product for the full year. At a projected average price of $ 69.90 per barrel high-end products, the refinery will make a significant contribution to Staatsolie’s success this year and for many years to come.
The Merian gold investment is bringing net profit of US$ 22.6 million in the first half of 2017, with the mine achieving 215,000 oz. of gold production to 30 June at an average price of $1,243 per oz. Forecast production for the full year is 502,000 oz. at an even higher price than in the first half of 2017.
Revenue and earnings
Our consolidated gross revenues in the first half of 2017 increased by 20% to US$ 204.6 million compared to the first half of 2016. We also achieved consolidated earnings before tax of US$ 40.0 million this period, a 381% increase on the 2016 half year. This is a pleasing result and a testament to the efforts of all our people to take ownership of the business and focus on costs.
For the full year 2017, our estimate is that overall consolidated gross revenues will be US$ 472 million.
More detailed information is available in the half year report of Staatsolie Suriname under the button:
Number of pages 31 • Language English • Country Suriname
Tags: public finance and tax, tax, compliance, economy, economie, suriname, government, financien, finance, budget, begroting, report, annual report, jaarverslag, staatsolie.