Botswana Oil Limited has achieved a profit before tax of P8.8 million and P15.5million in its second and third year of operation respectively for the year ended March 2016.
The company has attributed the success to have been driven by the increase in revenue and margins compared to the previous year. Also it is attributed to the sale of cleaner fuels (ULP95 and AGO50PPM) to International Oil Companies and declining crude oil prices.
Botswana Oil Chief Executive Officer (CEO) Willie Mokgatlhe said there was the unrealised gain on product loan re-evaluation at year end, adding that it was caused by the decline in crude oil prices.
“There has been government strategic reserves procurement income as well as finance interest from investment in the money markets and call accounts,” said Mokgatlhe.
He stated that the company aimed to mitigate national challenges such as security of supply of petroleum products and facilitation of local content as well as achieving economies of scale in the procurement of petroleum products and achieving security of product supply.
He said it was key for the company maximising the development of national resources, enabling BOL to develop the petroleum sector and capturing greater value from the resource sector. He said the company was mandated to ensuring more equitable distribution of resource benefits as well as being able to develop facilities in the rural areas
“We are managing other risks that come along and ensuring quality of resources, meeting global demand trends, the country’s economic and institutional context,” he stated.
Mokgatlhe spoke of stabilised fuel suppliers, adding that there were no fuel supply disruptions since inception despite strikes in South Africa and also being able to deploy alternative routes in case of emergency. He added that they developed links with oil producing nations. He said at least eight citizen companies are being actively facilitated.
Mokgatlhe further stated that the country was working towards diversifying its economy through coal beneficiation and associated by-product. He believes that true security of supply comes with being self-sufficient therefore an opportunity exists for Botswana to exploit her vast coal resource through environmentally friendly technologies.
“We are supporting the facilitation of meaningful participation of citizens in the petroleum sector, including placement of 49 percent shares into the stock exchange,” Mokgatlhe stated.
He added that they ensured the distribution of petroleum products to the rural areas where the multinationals are not able to operate.
Asked on the annual national consumption of petroleum products, Mokgatlhe stated that it was about 1.2 billion litres, adding that Botswana had limited petroleum investment infrastructure such as storage facilities and pipelines.
“The country is looking at promoting investment in infrastructure that includes pipeline and storage facilities locally and coastally, to increase reliability of supply,” he said.
