Empresa Nacional del Petróleo produced a positive consolidated net result of US$ 82 million in 2010, maintaining the trend shown in the third quarter and improving the company’s results, which enabled it to reverse the losses suffered in the first half of the year.
This result includes the costs related to the divestment plan the company has had to face, which were booked in the last quarter of the year. The result for the year 2010 of US$ 82 million is shown after income tax at the rate of 17%. Earnings measured after the special additional tax of 40%, applicable to state-owned companies (decree law 2,398), amounted to US$ 70 million.
It is important to stress that the year’s results were strongly affected by the earthquake and the deterioration in international refining margins during a large part of the year. Nevertheless, the recovery in the company’s results began to be seen from the second quarter of the year.
This is evident from the company’s result, after 17% income tax, to March 31, 2010 of a loss of US$81 million, affected by the stoppages of both refineries as a result of the earthquake. The second quarter result, after 17% income tax, was a positive US$ 18 million, reflecting the resumption of both facilities.
For the third quarter, the post 17% income tax earnings were US$ 62 million, showing the effect of the refineries’ functioning at normal average capacity and the inclusion of insurance claims with respect to earthquake damage. In line with the third quarter’s result, earnings for the last quarter, after 17% income tax, were US$ 83 million, mainly due to the improvement in international refining margins.
The gross margin as of December 31, 2010 was US$ 246 million, a figure slightly lower, by US$ 32 million, than that in December 2009. The margin reduction is mainly explained by the effect on the business of the stoppage of operations at ENAP’s refineries due to the effects of the earthquake, and partly to the reduced international refining margins in 2010, compared to the year before.
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Source: Enap, March 2, 2011;