Petro­trade de­clares $225 000 div­i­dend

Chronicle (Zimbabwe) - - Business Chronicle - Busi­ness Re­porter

STATE-OWNED fuel re­tailer Petro­trade Pvt Lim­ited has de­clared a div­i­dend of $225 000 after post­ing a $1.8 mil­lion net profit for the full year ended De­cem­ber 2015.

The re­sults show that Petro­trade’s prof­itabil­ity was aided by a fair value ad­just­ment on in­vest­ments of $1 mil­lion after its rev­enues fell dur­ing the pe­riod to $110,7 mil­lion from $139 mil­lion the pre­vi­ous year.

In a state­ment ac­com­pa­ny­ing its abridged au­dited fi­nan­cial re­sults for the pe­riod, re­leased Thurs­day, the com­pany said it was work­ing on ex­pand­ing its re­tail net­work so as to im­prove foothold in the fuel in­dus­try.

“The com­pany held its an­nual gen­eral meet­ing on 26 Oc­to­ber and a div­i­dend of $225 000, be­ing 30 per­cent of the profit after tax at­trib­ut­able to the share­holder, was de­clared.

“To­tal com­pre­hen­sive in­come for the year in­creased by 160 per­cent driven by the fair value ad­just­ment on ma­tu­rity in­vest­ments,” it said.

The firm cited the gen­eral dif­fi­cult eco­nomic en­vi­ron­ment char­ac­terised by low de­mand for fuel prod­ucts in the wake of cash short­ages and low pro­duc­tion ac­tiv­ity across the coun­try.

It also said in­ter­na­tional oil prices con­tin­ued to fall from around $60 per bar­rel in Jan­uary 2015 to as low as $35, forc­ing oil firms in the coun­try to re­duce prices thereby im­pact­ing on their rev­enues.

Petro­trade, how­ever, said it man­aged to with­stand the tide by at­tain­ing after tax profit of $749 621 and a to­tal com­pre­hen­sive in­come of $1,8 mil­lion.

Petro­trade is a pri­vate com­pany, wholly owned by the Govern­ment of Zim­babwe. It is a suc­ces­sor Com­pany to the for­mer Na­tional Oil Com­pany of Zim­babwe (Noczim).

In De­cem­ber 2010, the Govern­ment of Zim­babwe, the share­holder of Noczim, through the Min­istry of En­ergy and Power Devel­op­ment, took a de­ci­sion to re­struc­ture Noczim by un­bundling it into two com­pa­nies.

Petro­trade was as­signed the re­spon­si­bil­ity for down­stream ac­tiv­i­ties, in­clud­ing the sell­ing of petroleum prod­ucts and lu­bri­cants through bulk sales and ser­vice sta­tions while the Na­tional Oil In­fra­struc­ture Com­pany of Zim­babwe (NOICZ) fo­cused on in­fra­struc­ture devel­op­ment.

The firm said it will con­tinue to move cau­tiously in main­tain­ing its mar­ket share within the short term while an­tic­i­pat­ing im­prove­ment in the econ­omy.

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.