ISSUES....
Inside, confidential, off the record

 

PDVSA’S Financial Results for 2006

Yet once again Reuters has published a statement that show they do not understand that net profits are a virtually irrelevant figure when applied to PDVSA . The header reads “Venezuela's PDVSA reports $5.45 billion 2006 profits,” and they go on to say, “Venezuelan state oil company PDVSA'S 2006 net earnings were $5.45 billion compared to $6.48 billion the year before, according to the company's audited results released on Saturday.”

In a State company, the difference between income and costs, excluding royalties, all accrues to the government as “government take” and that is the figure which interests Venezuelans. It is composed of royalties, payments for social purposes, income tax and net income. The last one is included because the government can, and does, take an amount as dividends.

PDVSA says that the government take, based on actual cash payments rather than the amounts shown in the Statement of Net Income, reached $39.21 billion in 2006. This is probably some $5.00 billions more than in 2005, but we shall not know the exact figures till PDVSA publishes its accounts together with the notes thereto. It is hoped this will happen within the next few days.

Oliver L Campbell

09.09.07

Petroleumworld 09 10 07

 

ISSUES.... Is an independent journalist effort from Petroleumworld, on Inside, Confidential
and Off The Record Information, its views are not necessarily those of Petroleumworld

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