Heritage reports $2.8b in revenue

HERITAGE Petroleum Co Ltd has recorded $2.8 billion in revenue for the six month period ended March 31. In a statement accompanying the company's unaudited summary consolidated financial statements for that period, Heritage chairman Michael Quamina said, "As the world economy slowly resumes its economic activity, international Brent (crude oil) pricing averaged (US$) 53 per barrel compared to (US$) 57 per barrel for the corresponding period in 2020."

He continued, "Despite this lower price environment, Heritage's profit for the period improved to $0.8 billion compared to $0.7 billion for the same period in 2020 as a result of a focus on cost management in a volatile price environment."

Quamina said cash generation remained resilient and $1.2 billion was generated for the period, resulting in a cash balance of $1.5 billion. "Heritage's contributions to the Government through its payment of taxes, levies and royalties amounted to $372 million for the six-month period."

He added that Heritage continues to meet all of the Trinidad Petroleum Holdings Ltd (TPHL) Group's debt payment obligations inherited from Petrotrin. TPHL was formed in 2018 after the closure of Petrotrin.The group consists of Heritage, Paria Fuel Trading Company, Guaracara Refining Company, Heritage and Petrotrin (which exists only on paper).

Quamina said key strategic partnerships are being developed through lease operatorships, farm outs and joint ventures. "These are being progressed to explore and develop key resources in the Southern basin oil play which includes the Soldado and Jubilee offshore fields and the deeper horizons on land."

He said Heritage and EOG recently embarked upon a joint operating agreement which involves EOG farming-in by drilling one and the possibility of adding another exploration well in the offshore Trinidad Northern Area.

As part of Heritage's environmental agenda, Quamina said a grant of $1.5 million in sponsorship was given to the Pointe-a-Pierre Wild Fowl Trust. "The Trust is dedicated to environmental education and the conservation of wetlands and waterfowl."

As part of Heritage's commitment to the national response against covid19, Quamina said the company distributed hampers to vulnerable families in the communities that it serves and staff personally donated $250,000 of their own money to buy additional food hampers in support of these efforts.

He said Heritage also donated over 500 computers to students to facilitate online learning in response to covid19 protocols.