PETCOM leaking profits
By
Edmond Campbell, Senior News Coordinator
Jamaica
Gleaner
KINGSTON
Petroleumworld.com
08 14 06
After
recording staggering sales of more than $5.5 billion
for financial year 2004/2005, the state-run Petroleum
Company of Jamaica's (PETCOM) profit and loss account
showed an operating loss of nearly $30 million.
In
2003/2004, the company chalked up an operating profit
of $44.89 million and ended that financial year
with a net profit of $25.69 million. However, the
following year the company closed the period with
a net loss of $18.85 million.
President
of the Jamaica Gasolene Retailers Association (JGRA),
Trevor Heaven, said the operating loss is a disappointment
when the massive sales are taken into account.
"One
would expect that their margins on all grades of
product are in line with the other marketing companies,
and so we believe the PETCOM stake of the business
should put them in a profit situation rather than
a loss position," Heaven told The Sunday Gleaner.
Concerns
Opposition
spokesman on energy, Clive Mullings, recently raised
a number of concerns in relation to the operations
of PETCOM.
Among
the issues highlighted by Mullings was a $47.87
million in bad debts for 2004/05, representing a
more than 800 per cent increase over the $5.44 million
for doubtful debts in 2003/04.
"What
is the reason for all these bad debts when you are
turning over sales of $5,600 million dollars a year?"
he enquired.
Meanwhile,
the JGRA president told The Sunday Gleaner that
PETCOM was leading the way in terms of lower prices
on the market.
PETCOM,
with some 35 stations across the island, has contracted
the operation of most of its outlets to private
operators.
PETCOM
figures
$30 million operating loss in 04/05
$18.85
million net loss in 04/05
$47.87
million in bad debts for 04/05
$5.44
million for doubtful debts in 03/04
Jamaica Gleaner
Sunday | August 13, 2006
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