Orca profit swells, amid challenges

Orca Exploration Group, that operates the Songo Songo gas field in Lindi Region, made a record profit in 2012 due to increase in gas sales and gas price.

The firm, that operates in the country under its sister company PanAfrica Energy, said in a statement it made 18.3 million US dollars (29.28bn/-) net profit for 2012, equivalent to over 130 per cent increase from 2011. It said that its pre-tax profit increased to 35.45 million US dollars (about 56.7bn/-) from 15.32 million US dollars (24.5bn/-) in 2012.

“Orca operated its Songo Songo gas field at maximum plant and pipeline capacity resulting in record operating and financial results,” the statement reads. The profit was attributed to an 18 per cent increase in gas sales volumes plus a 10 per cent increase in the average gas price.

This was together with higher cost recoveries as a result of capital spending combined to double funds flow from operations over 2011 to a record 45.8 million US dollars (77.6bn/-). 

The firm, however, that the same year was challenging as the country’s power supply utility, TANESCO and Songas did not pay their debts to the company.

“Given TANESCO and Songas nonpayments record funds flow did not translate to cash – balances at the end of 2012 were 16 million US dollars, down 54 per cent from 2011,” the report says.

Average gas prices up 10 per cent in 2012 to US$ 4.31/Mcf million cubic feet (Mcf) while in 2011 was US$3.92/Mcf, industrial gas prices were down 7.5 per cent in 2012 to US$9.31/Mcf from changes in the sales mix.

The average power sector gas prices increased 15 per cent over 2011 to US$3.18/ mcf from US$2.77/mcf, pursuant to the PGSA and ARGA. Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through the wholly owned subsidiary PanAfrican Energy.
Source: The Daily News, reported by Abduel Elinaza in Dar es Salaam
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