The Kuwait Petroleum Corporation (KPC) posted a record profit of one billion dinars ($3.58 billion) for the 2011 fiscal year. The profits soared at 9.1% for the year compared to the previous fiscal year with an increase of 183 million dinars.
Ali Amer Al-Hajiri, Managing Director of Financial and Administrative Affairs in KPC, said that return on investment for the year stood at 11.8%, an increase of 0.7% points from last year.
Kuwaiti newspaper Al Watan reported that growth rate surged 9.1% while profit margin was 6.6%, an increase of 0.6% points over last fiscal year. Al-Hajiri said the financial results are a distinctive achievement for the corporation this year and attributed the success to the special efforts made by the company’s employees. He underlined that world’s economies and the region as a whole are going through a very difficult time with negative effects felt across many sectors. Nonetheless, he said, KPC succeeded to overcome those challenges and achieved excellent results.
“The financial results were achieved due to a combination of factors, which centred around the company’s integrated strategy to improve profits, particularly reducing the amount of shutdown time required for maintenance, in addition to improving the quality of production and products,” Al-Hajiri explained.
He added that the strategy included the search for high-profitability markets, continuous monitoring of the performance of financial investments, and modifying the composition of investments in order to obtain the largest possible return in line with the movement of global markets, all of which combined to allow KPC to achieve the strong financial results that have characterised this year.
The Kuwait Petroleum Corporation said the price of Kuwaiti crude oil dropped 87 cents in trading last Wednesday, to settle at $106.67 a barrel, compared to $107.54 at the beginning of the trading day. The decline in crude oil prices came as the result of the financial and political turmoil in Greece, and fears about the continuing sovereign debt crisis in the eurozone, which also led to a decline in share prices in global markets.
The US has developed a large crude oil stockpile, storing crude at a rate of 6.57 million barrels for the week ending 11 May, a report published in the American Petroleum Institute weekly periodical claimed. The International Energy Agency said in its report last Friday that the relatively low oil prices have been possible thanks to increased production in OPEC countries, particularly Iraq, Libya, and Nigeria. OPEC’s total production reached 32 million bpd, despite the cartel members agreeing to a ceiling of 30 million bpd, the report disclosed.