Petrotrade declares $225 000 dividend

Business Reporter
STATE-OWNED fuel retailer Petrotrade Pvt Limited has declared a dividend of $225 000 after posting a $1.8 million net profit for the full year ended December 2015.

The results show that Petrotrade’s profitability was aided by a fair value adjustment on investments of $1 million after its revenues fell during the period to $110,7 million from $139 million the previous year.

In a statement accompanying its abridged audited financial results for the period, released Thursday, the company said it was working on expanding its retail network so as to improve foothold in the fuel industry.

“The company held its annual general meeting on 26 October and a dividend of $225 000, being 30 percent of the profit after tax attributable to the shareholder, was declared.

“Total comprehensive income for the year increased by 160 percent driven by the fair value adjustment on maturity investments,” it said.

The firm cited the general difficult economic environment characterised by low demand for fuel products in the wake of cash shortages and low production activity across the country.

It also said international oil prices continued to fall from around $60 per barrel in January 2015 to as low as $35, forcing oil firms in the country to reduce prices thereby impacting on their revenues.

Petrotrade, however, said it managed to withstand the tide by attaining after tax profit of $749 621 and a total comprehensive income of $1,8 million.

Petrotrade is a private company, wholly owned by the Government of Zimbabwe. It is a successor Company to the former National Oil Company of Zimbabwe (Noczim).

In December 2010, the Government of Zimbabwe, the shareholder of Noczim, through the Ministry of Energy and Power Development, took a decision to restructure Noczim by unbundling it into two companies.

Petrotrade was assigned the responsibility for downstream activities, including the selling of petroleum products and lubricants through bulk sales and service stations while the National Oil Infrastructure Company of Zimbabwe (NOICZ) focused on infrastructure development.

The firm said it will continue to move cautiously in maintaining its market share within the short term while anticipating improvement in the economy.