Heritage makes $5.4b in 10 months

Heritage Petroleum Co Ltd earned $5.4 billion for its first ten months of operation. In its audited financial statements for the period ending September 30, 2019, and published Thursday, the company also turned a $1.4 billion profit and made no taxation expense. The company also held $1.16 billion in cash and cash equivalents for the end of the period.

According to the accompanying notes on the financial statements (Note 2), Heritage is owed $1.47 billion from transactions from related parties (the State and other state enterprises), including $48.3 million in VAT refunds. It is also owed $515 million from parent company TPHL mainly from loan principal repayments, interest obligations and cash advances. It is owed $900 million from Petrotrin for fees and transactions related to restructuring and asset transfers.

The company does, however, owe Government $185.7 million in taxes other than income tax ($23 million) and royalties ($162 million).

According to Note 16, the revenue breakdown, the company earned $4.8 billion from crude oil sales; $329 million from natural gas sales; $229 million in royalties; and $11.1 million from natural gas liquids. Note 20 explained that for the period, the company paid $89.3 million for employee benefit expenses including $63 million in salary and wage benefits.