Financial data revealed that the Kuwait Petroleum Corporation and its subsidiaries invested their surpluses in short- and long-term deposits at specific interest rates agreed upon with local banks at five percent more than it was in 2018.
The data showed that the cash and deposit balances of the Petroleum Corporation were greatly affected during the last period by the changes that occurred during the recent years of the corporation, in addition to the impact of its cash flows on operational operations and financing and investment operations that took place during that period, in addition to being affected by the results of its other investments, which was reflected negatively on its liquidity and financial solvency, as studies on cash flows during the five years (2020/2021 to 2024/2025) referred to in the review submitted by the working group studying the financial situation of the Kuwait Petroleum Corporation predicted a financial deficit estimated at 10 billion dinars, taking into account the size of the capital expenditure required to be financed and other obligations, which exposes the institution to the risk of being unable to fulfill the financial obligations to contractors, lenders and the state, reports Al-Anba daily.
The data said that the revenues achieved by the Petroleum Corporation during the past fiscal year amounted to 1.5 million dinars. In detail, the deposits are concentrated with the “Petroleum Corporation” with 513.5 million dinars, then the Kuwait National Petroleum Company with 15.9 million dinars, then the Kuwait Gulf Oil Company with 5.02 million dinars, then the Kuwait Petroleum Corporation (Aruba) with 3.9 million dinars.
Historically, KPC deposited in 2019 recorded the highest historical level at 626.2 million dinars, achieving annual returns of 4.5 million dinars. In total, “Petroleum” and its companies achieved realized returns from bank deposits amounting to 17.4 million dinars during the past five years, and it is noted that the returns achieved for “Petroleum Corporation” deposits decreased as a result of low interest rates that coincided with the outbreak of the “Corona” pandemic during the past years.
On the other hand, cash and current account balances in the last fiscal year amounted to 401.7 million dinars, a decrease of 330 million dinars when it amounted to 600.2 million dinars. It also achieved returns of 158 thousand dinars, compared to achieved returns of 7.6 million dinars in 2018, when the total deposits amounted to 7323.8 million dinars.
It is noted that the revenues achieved from cash and current accounts decreased by about 98% compared to the interests achieved in the fiscal year ending on March 31, 2018.