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Cape Town – PetroSA’s group profit surged 54% to about
R1.3bn in the 2011-12 financial year‚ says CEO Nosizwe Nokwe-Macamo.
Presenting the state-owned company’s annual report to
Parliament on Wednesday‚ Nokwe-Macamo said revenue increased by 37% to
R14.444bn but the cost of sales had dropped to R8.855bn from R11.941bn.
This meant gross profit increased by 17% to R2.503bn.
Nokwe-Macamo said the rise in revenue was due in part to a
2% increase in sales volumes. This‚ she said‚ was slightly offset by the cost
of sales increase due to increased products purchased. The rand’s weakness both
helped and hindered the company‚ increasing both the value of sales and costs.
However‚ operating expenditure declined from R1.904bn in the
2010-11 financial year to R1.675bn due to the freezing of posts and other
cost-saving measures.
Investment income dipped to R840m from a previous R860m due
to lower interest rates despite higher cash reserves.
A contract cancellation fee of R19m caused fruitless and
wasteful expenditure to rise to R35.8375m in the 2011-12 financial year
compared with R21.619m in the 2010-11 year.
Nokwe-Macamo told Parliament’s energy committee that the group was looking at extending the life of the Mosgas field until at least 2020‚ that the company wanted to be actively involved in exploration for shale gas in the Karoo and that the study of the building of a refinery in the Eastern Cape would be finalised by end of December.
