Details of the loss of Bidboland gas refinery ‌

According to the economic correspondent of Fars News Agency, the lack of transparency in the financial relations of the oil companies and their operation has caused the level of supervision of these companies by the Islamic Consultative Assembly and other responsible institutions to decrease.

In the meantime, an examination of the financial statements of the companies affiliated to the Ministry of Petroleum can reveal accurate information about the status of these companies and their strengths and weaknesses.

In previous reports, the financial statements of the following companies of the Ministry of Oil were examined as follows:

1. South Pars Complex Company
2. Fuel consumption optimization company
3. National Petroleum Products Distribution Company
4. Caspian Oil Company
5. Southern Oilfields Company
6. Imam Khomeini Shazand Oil Refinery
7. Offshore Oil Company
8. Central Iranian Oil Company
9. Pars Oil and Gas company
10. Arvandan Oil and Gas Company

This report examines the financial statements Bidboland Gas Refining Company Paid.

* Upward trend of losses of Bidboland Gas Refining Company

According to the financial report of Bidboland Gas Refining Company in 1999, this company is one of the subsidiary units of the National Gas Company, which is responsible for purchasing and supplying gas from generating units, processing gas and turning it into the main product of natural gas and by-products such as extracted liquids. And is responsible for the supply of sulfur and any related derivatives.

According to Table 1, the operating income of Bidboland Gas Refining Company in 1999 was about 118 billion Tomans, which has increased by 15 billion Tomans compared to last year. However, this company has suffered a net loss of 88 billion tomans. The net loss of Bidboland Gas Refining Company in 1998 was about 10 billion Tomans.

Table 1

* Supply of 4 billion cubic meters of refined gas by Bidboland refinery in 1999

According to Table 2, the amount of refined gas in Bidboland Gas Refining Company in 1999 was about 3.9 billion cubic meters, which was sold to the National Gas Company at a rate of 30 Tomans per cubic meter, bringing the company’s operating income to 118 billion Tomans.

In 1998, the amount of refined gas in Bidboland Gas Refining Company was equal to 4.2 billion cubic meters, but due to lower gas rates, the operating income of this company was less than in 1999 and about 103 billion tomans.

In other words, the 13.5 percent increase in sales in 1999 compared to the previous fiscal year was due to an 18.9 percent increase in sales and a 5.4 percent decrease in sales.

Table 2

Of the 3933 million cubic meters of refined gas sold to Iran Gas Transmission Company, 3841 million cubic meters amounted to 115.2 billion Tomans related to the sale of Bidboland Gas Refining Company refined gas and 92 million cubic meters amounted to 2.8 billion Tomans It has been to Masjed Soleyman gas refinery.

Masjed Soleiman Refinery is a subsidiary of Bidboland Gas Refining Company, the report of which is given in the financial statement of this company.

* The cost of Bidboland gas refinery for gas processing is 2.7 times the revenue

Table 3 shows the income and expenses of Bidboland Gas Refining Company for gas processing and refining in 1999. According to this table, considering the pricing of each cubic meter of gas sales equal to 30 Tomans, the operating cost of this company is 2.7 times its revenues, and this has caused the company to be on the decline of cumulative losses.

Table 3

According to the financial statements, the reason for the increase in operating losses was mainly due to the increase in the cost of operating income, which was affected by the increase in the cost of services and consumer goods and general inflation, rising prices.

* Less than half the capacity of Bidboland gas refinery was used in 1999

Table 4 shows the amount of sour gas received and refined gas sent to Bidboland Gas Refining Company in 1999. According to this table, the amount of refined gas in this refinery has decreased by 222 million cubic meters compared to 1998.

Table 4

Table 5 also shows the amount of refined gas at Bidboland Refinery and Masjed Soleiman. Interestingly, the practical capacity of Bidboland Gas Refining Company to purify gas was more than twice its actual production in 1999.

Table 5

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