PetroSA Posts Full-Year Loss on Higher Costs, Supply Delays

PetroSA, South Africa’s national oil company, reported a full-year loss following a one-time charge taken for higher project costs and feedstock delays.

The loss was 1.65 billion rand ($151 million) for the year ended March 31, the Cape Town-based company said today in a statement. The profit before the 3.4 billion rand-impairment was 2.2 billion rand, compared with 983 million rand a year ago.

Revenue increased to 21.2 billion rand from 18.9 billion rand because of higher local demand for its products and the weakening of the rand, the company said.

“This is the result of a volatile economic environment; creep in project costs and delays in the feedstock drilling program” of Project Ikhwezi, earmarked to supply the company’s gas-to-liquids refinery in Mossel Bay, the company said.

Supplying natural gas to its refinery remains an obstacle and production at the plant fell 14 percent below target, the company said. PetroSA is drilling off the south coast of South Africa to supply the 45,000-barrel-a-day plant, which is running at about 50 percent capacity because of lower gas supply, the company said last year.

“The sustainability of our refinery is critical as it not only contributes to the sustainability of our business but also to our total revenue,” Chief Executive Officer Nosizwe Nokwe-Macamo said in the statement.

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