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PDVSA spent USD 38.3 billion in oil purchases
By Marianna Parraga
El Universal ( Venezuela)
CARACAS
Petroleumworld.com 03 30 07Venezuelan state oil conglomerate Pdvsa disbursed USD 38.33 billion, or 37.6 percent of total revenues, to purchase crude oil and byproducts last year, thus driving costs and expenses up to USD 78.9 billion, an increase of USD 12.38 billion (18.6 percent compared to 2005.
Together with the prospectus providing details on the issue of Pdvsa debt bonds, this week the holding published its non-audited financial statements, including affiliates abroad. This information supplements the data provided in Pdvsa 2006 annual report filed with the National Assembly.
Pdvsa and affiliates' revenues from crude oil and byproducts sales jumped from USD 81.10 billion in 2005 to USD 96.67 billion in 2006, boosted by increased oil prices. Sales in the domestic market were 58 percent up compared to 2005 and totaled USD 2.23 billion.
Further, Pdvsa received USD 1.06 billion in profits from foreign affiliates, USD 113 million less than in 2005. However, this is a significant amount, if compared with results in 2001, when profits from Pdvsa branches abroad were USD 464 million.
Besides crude oil and byproducts purchases, other Pdvsa costs increasing significantly last year were royalties, which climbed from USD 13.31 billion in 2005 to USD 18.24 billion in 2006.
In terms of USD per barrel, Pdvsa's production costs soared 4.2 percent, from USD 3.77 to USD 3.93. However, excluding operational agreements that last April migrated to joint ventures, production costs fell from USD 3.29 to USD 3.13 per barrel. This is a significant cost, however, compared to USD 2.17 per barrel in 2001.
Increasing social expenses
Pdvsa's profit before tax in 2006 was USD 22.93 billion. Out of this amount, the holding disbursed USD 13.26 billion to social plans, in comparison to USD 6.9 billion in 2005. Therefore, there was a substantial increase of 91.9 percent in 12 months.Based on Pdvsa 2006 annual report to the National Assembly, the conglomerate recorded domestic social expenses at USD 11.83 billion. Therefore, it can be assumed that USD 1.42 billion was devoted to social expenses abroad.
Pdvsa's refining branch in the United States Citgo last year undertook a program to sell subsidized heating oil to the poor in several US states. This move involved subsidies at approximately 40 percent.
Additionally, it is noteworthy that while expenses for royalties and other taxes jumped significantly, income tax plunged 15.8 percent from USD 5.81 billion in 2005 to USD 4.89 billion in 2006, particularly because of tax discounts related to social expenses.
Regarding Pdvsa's cash flow, last year it was USD 5.63 billion, a decrease of USD 1.05 billion, compared to 2005.
Pdvsa's net benefits abroad dropped USD 1.70 billion (26.3 percent) from USD 6.48 billion to USD 4.77 billion. Domestic profit was USD 3.28 billion -similar to that in 2001, when the Venezuelan oil basket price averaged USD 20.21 per barrel.
Translated by Maryflor Suárez R.
msuarez@eluniversal.com
El Universal 29 03 07
Copyright© 2007 Diario El Universal. All Rights Reserved.
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