BAKU, Azerbaijan, November 1
By Tamilla Mammadova – Trend:
Georgian lari’s 10 percent depreciation against the US dollar in 1H2019, triggered the reduce of pipeline rental revenues, Trend reports via the Georgian Oil and Gas Corporation (GOGC).
Compared to 1H2018, the rentals have decreased in dollar terms by 7.1 percent to $7.9 million, while in lari terms income remained flat.
Oil transportation revenues declined by 15.1 percent to $3.6 million, as crude oil through put in the Western Route Export Pipeline (WREP) was down.
Significant growth in revenues from crude oil sales (up 70.8 percent year-on-year to $1.6 million), which makes up only 1 percent of total revenue, was partially driven by increased volumes (up 53.9 percent year-on-year) as well as higher global crude oil prices.
The 1H2019 operating expenses were up 14.9 percent year-on-year to $130.9 million. Cost of gas, largest expense category, which combines gas purchased for resale (85 percent of cost of gas) and gas used by Gardabani I HPP, grew 19.6 percent year-on-year to $114.5 million.
The gas costs for resale increased in both, volume (+12.8 percent year-on-year) and price (+ 3.8 percent year-on-year) terms.
As a result this category was up 16.7 percent year-on-year to $97.9 million. Cost of gas used in electricity generation also grew 39.9 percent year-on-year to $16.7 million as demand on gas from Gardabani I increased in the reporting period.
Georgian Oil and Gas Corporation is a diversified company with business activities in various segments of energy. It has the status of the National Oil Company and protects state interests in the Production Sharing Agreements signed with investors.
GOGC is actively engaged in international projects and business relations, it plays the decisive role in implementation of the governmental economic policy of integration into Euro-Atlantic structures.
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