KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) Botswana-listed operation last year recorded its first profit drop in four years due to the decline in international crude oil prices.
Engen Botswana Ltd told the Botswana Stock Exchange on Friday that its net profit was halved to 65.2 million pula (RM24.1mil) last year on the back of a slightly lower revenue of 2.6 billion pula (RM962mil).
The downstream petroleum marketer said its gross profit fell by 26.9% mainly due to the decline in international crude oil prices, which necessitated the revaluation of inventories during the course of the year in line with International Financial Reporting Standards.
Foreign exchange gains also decreased from 9.7 million pula (RM3.6mil) at the end of 2013 to 1.4 million pula (about RM520,000) at the end of 2014. It said this was due to the depreciation of the Botswana pula against the South African rand.
Engen Ltd, which operates South Africa’s second largest refinery, is 80% owned by Petronas and has a 70% stake in Engen Botswana, according to Engen Botswana’s 2014 annual report,
Engen Botswana said while retail sales grew by 4%, commercial sales declined by 4% due to the completion of some infrastructure development projects that the group was supplying fuel to, and supply constraints on liquefied petroleum gas during an unplanned shut down of its affiliate refinery in Durban, South Africa.