Non-U.S. oil companies faced a tough market during 1997

Non-U.S. oil and gas companies confronted a number of earning challenges in 1997, including reduced Asian demand and low oil prices. Although net profits were less than stellar, many posted gains over the previous year. For the fiscal year ending Mar. 31, Oil India Ltd. (OIL) showed a 30% increase in net profit from its crude oil and natural gas production. Net profit for the year rose to $81.3 million compared with $63.3 million in the previous year. OIL's production reached 3.094 million

April 27, 1998

2 min read

Asia

For the fiscal year ending Mar. 31, Oil India Ltd. (OIL) showed a 30% increase in net profit from its crude oil and natural gas production. Net profit for the year rose to $81.3 million compared with $63.3 million in the previous year.

OIL's production reached 3.094 million metric tons in 1997 vs. a target of 3.05 million tons. This was a 20-year record high.

Natural gas output for the firm was 1.67 billion cu m, a 10.23% jump over last year's 1.515 billion cu m of gas production. OIL attributed the increase to new discoveries adjoining the Naharkatiya oil and gas field.

Hong Kong's Jilin Chemical Co. Ltd. posted substantially lower earnings compared with the previous year. Jilin Chemical reported operating profits of $20 million in 1997-a 65.1% decrease from 1996-and $12 million in net profits, down 67.9%, for the fiscal year ending Dec. 31, 1997.

The declines were attributed to depreciation and financial expenses incurred from start-up of ethylene facilities, increases in crude oil costs, and declines in the prices of certain products.

Elsewhere

In Mexico, lower oil and gas inventories and rising labor costs were significant factors affecting state firm Petroleos Mexicanos' 1997 financial report.

Pemex reported net profits of 7.371 billion pesos ($931 million), down 55% from the previous year, in peso terms. Crude production rose for the year, however, with most of the increase coming from the country's offshore Cantarell complex in Campeche Sound.

Natural gas production increased to 4.467 bcfd-a 6.5% increase on the year-mostly from the Burgos basin in northern Mexico.

PanCanadian Petroleum Ltd., Calgary, posted net income of $330 million (Canadian) on $3.4 billion in revenues in 1997. The company said it had a 156% production replacement rate for the year.

Meanwhile, fledgling producer Lundin Oil AB, Stockholm, reported net earnings of $7.8 million on $76.2 million in petroleum and natural gas sales for the year ended Dec. 3, posting a 4.2% return on shareholders' equity.