Staatsolie Annual Report 2017

Confidence in Our Own Abilities
14
Financial and
operational Performance 2017
Financials 2017
In 2017, the average posting price per barrel was
US$ 47 compared to US$ 32 in 2016, an increase
of 47%. Gross revenue was US$ 434 million
compared to US$ 358 million in 2016. This is an
increase of 21% compared to 2016 and includes
net cash income from the participation with
Newmont Merian Gold Mine of US$ 46 million.
Profit before tax is US$ 94 million compared to
the US$ 9 million loss in 2016. Contribution to the
Government was US$ 129 million, compared to
US$ 41 million in 2016.
The breakdown of sales and revenue for 2017 was
as follows:
In this regard we have engaged with Ernst &
Young, one of the big 4 international audit
firms to audit our 2017 financial statements.
The 2017 financial statements are the first we
have prepared in accordance with International
Financial Reporting Standards (IFRS). In
preparing the 2017 financial statements
together with the comparative 20161period data,
Staatsolie’s opening statement financial position
was prepared as per January 1, 2016, our date of
transition to IFRS. Previously Staatsolie used US
Generally Accepted Accounting Principles.
In 2018 several improvements will be implemented
to further strengthen our internal control
1
2017 2016
x 1000 Bbls in M$ x 1000 Bbls in M$
Fuel Oil & Crude 3,221 183 4,249 162
Diesel 1,986 152 1,416 123
Gasoline 593 49 358 32
Bitumen 24 2 36 2
Total 5,824 386 6,059 319
in MWh in M$ in MWh in M$
Electric Energy 30,478 48 26,896 39
Total revenues in US$ 434 358
In this improved context and considering the
maturity of the 2015 syndicated bank loan
in 2019, we refinanced and consolidated our
outstanding debts, including the government
loan, to improve the amortization profile and
extend debt maturities. With the new bank loan,
cash has been freed up for additional upstream
investments. The refinancing also included the
buyback of the 4.8% stake of the Government
related to their financial contributions made
in 2016 on Staatsolie’s behalf to the Limited
Partnership Agreement with Newmont.
We aim to maintain a healthy debt to EBITDA ratio
of less than 2.5 and are preparing to diversify
our funding sources through a capital market
transaction planned for the first half of 2019.
framework and finalizing our readiness to
enter the international capital market. Over
the next 3 years our capital investments will
focus on sustaining production at 16,500 bopd,
Enhanced/Improved Oil Recovery (EOR/IOR)
and nearshore exploration.
For 2018, capital expenditures (CAPEX) are
forecasted to amount to US$ 216 million (2017:
US$ 130 million) which includes US$ 112 million
for nearshore exploration and EOR/IOR. The total
estimated project budget for nearshore exploration
is US$ 120 million.
For 2019, we expect a CAPEX budget of around
US$ 350 million including approximately US$ 140
million for nearshore exploration and EOR/IOR.