Europa earns $6.9M

Press, 2 May 1981, Page 18

Europa earns $6.9M

Europa Oil NZ, Ltd, announced an unaudited consolidated tax paid profit of 56.9 M for the year ended December 31, of‘which S3M was an initial dividend from Europa's indirect interest in oil exploration and gas production. This compares with the adjusted 1979 figure of SS.BM, the adjustment (SI.IM) being for reduced depreciation arising from a change in the basis of valuing the company’s assets. Interest on convertible notes is covered 16.7 times. At the same time as the halfyearly interest cheques are paid, a bonus voucher valued at $5 and redeemable at any Europa service station will be issued to every registered holder of 100 or more convertible notes as at April 30.

The directors have recommended a dividend for the year to ordinary shareholders of S2.BM, equivalent to 40 per cent of the tax paid profit. In 1980 industry inland sales volume declined by some 5 per cent from 1979 levels. For Europa, however, the figure of only 1 per cent compares very favourably. Profit from the oil wholesaling activities amounted to $3.9M which was some SI.9M lower than the previous year. Although sales were lower, the reduction in profit was primarily because of the high interest cost incurred in financing the unavoidable increase in working capital investment during the year, which cost is not recoverable in the industry pricing mechanism.