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Editorial / Commentary / Opinion

 

 

Oliver L Campbell :
PDVSA'S financial results for 2009 overdue

 

According to its Statutes, PDVSA should have presented its 2009 Financial Results for approval by the shareholder, the Venezuelan government, by 31 March 2010 at the latest. The "New PDVSA" has not met this date for some years because the Oil Minister has not wanted them to. PDVSA has competent accountants and I am sure the accounts have been ready for several weeks. For instance, the 2008 accounts were published on 9 June 2009, but the external auditors' opinion was dated 29 March 2009 so the accounts must have been ready before then.

It is to be hoped PDVSA will publish its 2009 results within the next few days since its ultimate shareholders, the Venezuelan people, are anxious to read about its financial and operational performance. We do not expect the financial results to be as good as those of 2008, when the average export price reached $86.49 per barrel, but that is no reason for holding up the accounts..

In conclusion, I should like to remind my colleagues who write on financial matters in the international press that, in a State company like PDVSA, all the difference between income and costs paid to third parties accrues to the government and that net income of itself is of no particular importance. If in 2008 the country had received only the $7,451 million of net income, after deducting minority interests, that would have been a disaster. In fact, the government take was $48,777 million, as seen in the table below, and that was the important figure.

Petróleos de Venezuela S.A.
Government Take 2008
(Figures in millions US dollars)

	Year 2008
Royalties	23,462
Payments for social development	2,326
Contribution to Fonden	12,407
Venezuelan income tax	3,131
Net income	9,413
Less minority interests	-1,962
Government take	48,777

The total above is taken from the accounts but the actual cash paid to the nation, according to the Oil Minister, was the greater amount of $53,100 million. Either figure is many times higher than the net income.

When the 2009 results are published, may I ask my colleagues in Agence France-Presse, Reuters, Miami Herald et al to concentrate on government take or total cash paid into the nation's coffers but not net income.

 

 

Oliver L Campbell , MBA, DipM, FCCA, ACMA, MCIM was born in El Callao in 1931 where his father worked in the gold mining industry. He spent the WWII years in England, returning to Venezuela in 1953 to work with Shell de Venezuela (CSV), later as Finance Coordinator at Petroleos de Venezuela (PDVSA). In 1982 he returned to the UK with his family and retired early in 2002. Petroleumworld does not necessarily share these views.

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Petroleumworld News 31/05/2010

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