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EGPC forecasted net profit fell to EGP 21.4bn in FY 2019/20, down 30% - Daily News Egypt

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EGPC forecasted net profit fell to EGP 21.4bn in FY 2019/20, down 30%

Profit targets were set based on minimum oil, gas production, say sources

The Egyptian General Petroleum Corporation (EGPC) is expected to achieve a net profit of EGP 21.4bn during the current fiscal year (FY) 2019/20, down EGP 6.4bn (30%) from FY 2018/19, according to official sources.

The share of EGPC net profit of the economic government bodies’ net profits fell to 18.7% during FY 2019/20, compared to 27.8% during FY 2018/19, the sources told Daily News Egypt.

Egypt’s 2019/20 general budget estimated the net profit of economic government bodies at EGP 114.2bn, up from EGP 100bn in FY 2018/19, a 14.2% increase.

However, the sources said that the growth rate of economic bodies’ profits during the current fiscal year is less than that of the last fiscal year which recorded 37%.

An industry source said that the target profits in the FY 2019/20 budget were set based on the minimum oil and natural gas production and the revenues obtained by the EGPC from oil and gas exploration tenders.

He pointed out that the EGPC sets its budget according to production rate averages, as production rates are subject to fluctuations, and it is not possible to establish a specific estimate of production or revenue from exploration tenders.

The source pointed out that the budget of the authority includes the revenues and expenses of all the joint oil companies affiliated to them, and are placed within the total revenues of the EGPC.

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