Petrojam eyes US$16m profit in year ahead
Published:Saturday | February 12, 2022 | 12:08 AM
Jamaica’s state-owned oil refinery, Petrojam, is forecasting a net profit of US$15.77 million for the 2022-2023 financial year.
For the current fiscal year, which ends next month, Petrojam is expected to realise an estimated net profit of US$12.58 million.
The company says that crude oil prices are scaling multi-year highs as a shortage of natural gas, liquefied natural gas and coal boosts demand for the product, which could keep the market in deficit through 2022-23.
Petrojam’s budget for the upcoming fiscal year projects the average sale price of petroleum at US$79.36 per barrel. The company says the sales target is projected at 12.89 million barrels for the new financial year.
Bloomberg reported on Friday that Brent crude rose to US$95 a barrel for the first time since 2014.
The latest spike in crude oil price comes against the background of increasing political tensions between Ukraine and Russia.
United States authorities reported yesterday that Russia could invade its neighbour Ukraine in a matter of days, even as it urged its citizens to leave the country in 48 hours.
The spike in the price of oil on the global market is having a deleterious effect on the local petroleum sector, with both consumers and retailers complaining about the impact of the surge.
Petrojam sources crude supplies primarily from Brazil, Ecuador and Colombia, while finished products are imported mainly from the open market.