A Review of the Nigerian Energy Industry

PDVSA oil revenue dropped in 2013

Crude oil drips from a valve at an oil well operated by Venezuela's state oil company PDVSA in Morichal24 June 2014, News Wires – Venezuelan state oil company PDVSA’s revenue from oil and fuel sales dropped 8 percent in 2013 from the year earlier as exports declined and prices slipped, according to a report.

Revenue from sales dropped to $114 billion, Reuters reported, citing an audited financial statement obtained by the news wire.

That was driven by a 5.6% drop in exports of crude and refined products, and a decline in the price of Venezuelan oil.

Though total revenue did increase 5%, this was largely due to non-operational factors including foreign exchange earnings from the devaluation of the bolivar currency, and PDVSA’s sale of a stake in a state-run gold company.

Economists tend to focus on PDVSA’s revenue because of its multibillion dollar contributions to anti-poverty campaigns, which make profits less relevant than they would be for other private firms.

Total crude output including condensate and liquids remained stable at 3.02 million barrels per day.

PDVSA’s trade accounts payable, an indicator of its debts to service providers, rose 28% to $21.4 billion.

That increase may have been a factor in production remaining roughly unchanged despite long-standing plans to pump more crude, as service companies are crucial to launching new projects and increasing productivity of existing fields.

PDVSA said net profit more than tripled from the previous year to reach $15.8 billion, helped by a decline of more than $4 billion in net contributions to social development fund Fonden.

It also recorded $9.5 billion in revenue from the sale of its 40% stake in gold company Empresa Nacional Aurifera to Venezuela’s central bank. The company in question owns gold reserves in the ground but had no operations in 2013.


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