(MENAFN- Kuwait News Agency (KUNA)) The Kuwait Petroleum Corporation (KPC) has posted KD 1.4 billion (USD 5.3 billion) in the fiscal year ending on March 31, 2014 compared with KD 2.5 billion (USD 8.8 billion) in the same period last FY.
The fall in the KPC's profits is due to global oil price fluctuations which led to a dip in the Kuwaiti oil price from USD 105.3 per barrel in the FY 2012-2013 to USD 103.5 pb in the FY 2013-2014, the corporation's spokesman Sheikh Talal Al-Khaled Al-Sabah said in a news statement.
The drop was discussed during a KPC meeting held on Thursday under chairmanship of Minister of Oil and Minister of State for National Assembly Affairs Ali Al-Omair, he said.
A KD-76.2-million hike in the corporation's general and administrative expenditure due to the application of the labor law on oil workers' end-of-service gratuity was also considered during the meeting, he said.
The KPC has consequently borne costs that did not exist in the past FY and that mark the accumulative outgrowth of end-of-service gratuity but has been carried forward to this FY, the spokesman added.
This item makes up around KD 105 million, which has actually dipped to KD 29 million when compared with the total hike in administrative and general expenditure, he pointed out.
The meeting, furthermore, discussed a KD-24-million dip in refined oil during the FY ending in on March 31, 2014, which was partly caused by periodical maintenance programs and maximized hydrocarbon substance revenues and shutdown of refining units owing to power problems, Sheikh Talal said.
On the losses of the Kuwait Petroleum International (Q8), which is the international marketing arm of Kuwait Petroleum Corporation, the KPC's spokesman said the losses were sustained due to two problems: the negative impacts of the stock assessment process according to IAS 2 Inventories, and the application of the IAS 36.
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