Data shows Kuwait lost $2.11 from a barrel of refined oil during the past fiscal 2021/2022, compared to 92 cents per barrel losses estimated by KPC for the fiscal year, and these losses are specifically due to lower sales revenues and its cost as a result of the decline in the prices of refined materials, the increase in the cost of purchasing crude oil, and the increase in sea freight expenses.
It stated that the total cost of a refined barrel amounted to 28.5 dollars, as the cost of purchasing crude oil amounted to 66.97 dollars, the value of which was 6.22 dollars for refining expenses, 6.8 dollars for production values, and 2.55 dollars for depreciation. Dinars for the losses estimated in the budget for the fiscal year 2021/2022 amounting to 173.1 million dinars, and the decrease in actual results by 23.7 million dinars is due to the activity of marketing petroleum products, reports a local Arabic daily.
The data showed that the total revenues achieved by Kuwait from sales of petroleum products amounted to 6.72 billion dinars, compared to 7.16 billion dinars estimated in the operating budget, which reflects a decrease of 441.7 million dinars, or about 6.2%. This decrease is due to the following reasons:
— A decrease of 2.6 billion dinars as a result of the impact of the decrease in the quantities sold of petroleum products.
— A decrease of 102.3 million dinars as a result of lower sea freight revenues than estimated in the budget.
— A decrease of 32.5 million dinars as a result of the decrease in the exchange rate of the US dollar compared to what was estimated in the budget.
— An increase of 2.3 billion dinars as a result of the increase in average product prices.
— An increase of 100,000 dinars in the revenues of local marketing sales.
Compared to the financial results of crude oil marketing, we find that the activity achieved net profits of 220.3 million dinars, an increase of 118.5 million dinars over the profits estimated in the budget for the same period for this activity, amounting to 101.8 million dinars.
The increase in actual profits is due to an increase in the cost of purchasing crude oil as a result of the high average oil purchase prices. Crude from the state is about $34.27 per barrel in the quantities purchased at about 636.9 thousand barrels per day. The increase in profits is also due to:
— An increase in sales revenues to 10.3 billion dinars, compared to the budget estimates, i.e. by 159.3%. This increase was achieved as a result of the increase in the selling price of Kuwaiti export crude.
— A decrease in marketing expenses by 1.9 million dinars.
— An increase of 3 billion dinars as a result of an increase in the volume of crude oil sales by about 636.9 thousand barrels per day.
— A decrease of 127.2 million dinars as a result of the drop in the dollar exchange rate.
— A decrease of 57.7 million dinars as a result of a decrease in actual freight revenues.
