Guy­oil saw sharply lower after-tax profit of $1.8B in 2017

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The Guyana Oil Com­pany (Guy­oil) recorded a re­duc­tion in profitabil­ity in 2017 com­pared to 2016 due to the poor per­for­mance of the sale of gaso­line, which ac­counted for 58 per cent of rev­enue in 2017 ac­cord­ing to the Guy­oil 2017 an­nual re­port. This con­trasted with an in­crease in sales gen­er­ally.

The sales of mo­tor gaso­line, the com­pany’s flag­ship prod­uct, de­creased by 4.97 per cent in 2017 with the com­pany los­ing mar­ket share. “Ef­forts have been made in 2018 to ar­rest this de­cline,” chair­man of the board of di­rec­tors Mark Ben­der said in his re­marks in the re­port.

Ac­cord­ing to Ben­der, the net profit after tax­a­tion was $1.849 bil­lion in 2017 com­pared to $2.609 bil­lion in 2016, a de­crease of $0.76 bil­lion or 29.13 per cent.

The net profit be­fore tax for 2017 was $3.104 bil­lion com­pared to $4.456 bil­lion in 2016, a de­crease of $1.352 bil­lion or 30.34 per cent. Gross profit achieved in 2017 was $4.794 bil­lion com­pared to $6.050 bil­lion in 2016, a de­crease of $1.256 bil­lion or 20.76 per cent.

Guy­oil im­ports, dis­trib­utes, stores and mar­kets mo­tor gaso­line, gasoil, kerosene, fuel oil, ul­tra-low sul­phur diesel (ULSD) and Cas­trol lubri­cants. The ULSD, re­garded to be en­vi­ron­men­tally friendly, was in­tro­duced to the Guyana mar­ket in 2017.

The dis­tri­bu­tion net­work in­cludes 52 dealer-owned dealer-op­er­ated and eight com­pany-owned com­pa­ny­op­er­ated ser­vice sta­tions.

In terms of sales rev­enue, it was $35.259 bil­lion in 2017 com­pared to $31.939 bil­lion in 2016, an in­crease of $3.320 bil­lion or 10.39 per cent.

Cost of sales was $30.465 bil­lion com­pared to $25.889 bil­lion in 2016, an in­crease of $4.576 bil­lion or 17.68 per cent.

Vol­ume sales achieved in 2017 were 1,309,093 bar­rels com­pared to 1,287,211 bar­rels in 2016, an in­crease of 21,822 bar­rels or 1.7 per cent.

In terms of its cor­po­rate so­cial re­spon­si­bil­ity, Guy­oil con­trib­uted $6.240 mil­lion to com­mu­nity-based or­gan­i­sa­tions and in­sti­tu­tions in­volved in sports, ed­u­ca­tion, cul­ture and char­i­ta­ble work, Ben­der said.

On mar­ket­ing, he said, the com­pany’s drive to ex­pand its mar­ket share for fuel and lubri­cants dic­tated an ag­gres­sive pos­ture with de­lib­er­ate em­pha­sis on ag­gres­sive pric­ing strate­gies and con­tin­u­ing staff train­ing and de­vel­op­ment. He said there is also need to im­prove cus­tomer ser­vice across the board.

Nev­er­the­less, he said, train­ing con­tin­ued and cus­tomer sales rep­re­sen­ta­tives at­tended sem­i­nars on cus­tomer ser­vice, mar­ket­ing and prod­uct knowl­edge. Dur­ing the year, some 3,960 man-hours of in-house and ex­ter­nal train­ing were done.

On man­age­ment and staff, he said, the stream­lin­ing and re­struc­tur­ing of the com­pany, which be­gan in 2015, was com­pleted and fully im­ple­mented.

The in­dus­trial re­la­tions cli­mate, he said, con­tin­ued to be stable and cor­dial dur­ing 2017. Em­ploy­ees re­ceived salary in­creases of two per cent to ten per cent across the board in keep­ing with the gov­ern­ment’s salary in­crease. An an­nual in­cen­tive bonus of four weeks was also paid to em­ploy­ees.

Trade debtors were be­ing “vig­or­ously” pur­sued with

Mark Ben­der

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