30 October 2010 | Nick Martindale
Supply chain rationalisation and cost-reduction initiatives helped to stem financial losses at the state-owned Petroleum Oil and Gas Corporation of South Africa .
The company’s annual report said the business made a net loss of R356 million for the 2009/10 financial year, compared to a R1.9 billion net profit in 2008/09.
It blamed the loss on reduced production, lower oil prices and the statutory shutdown of the company’s GTL refinery at Mossel Bay, which meant it was forced to import finished products such as diesel and petrol.
Where it has worked to stem the flow of losses, the report read: “The company further rationalised its supply chain for various product streams through reducing storage costs and continued identification of new suppliers and sources of supply for both feedstock and finished product.”
PetroSA said a key focus for 2010-11 was to ensure security of supply for feedstock for the GTL refinery and hinted that it would look again at importing liquid natural gas.
It also said it had contributed R80 million to the cost of building a R200 million desalination plant to supply five million litres of water to the plant.
