TO see any profit at Heritage Petroleum Company Limited as some vindication for the closure of Petrotrin is really a moot point.
The Exploration and Production division of Petrotrin which is now Heritage Petroleum was always a profitable entity.
The issue that arose in the refinery was the treatment of non-cash items such as:
1) Large depreciation expenses arising from the completion of the Gasoline Optimization Programme in 2013 to 2014 and the commencement of operations of these new plants.
2) The write down of inventories due to the fall in oil prices (2014 to 2016). This hit the Profit and Loss statement hard.
3) The impairment of assets such as the Ultra Low Sulphur Diesel plant. This hits the profit and loss statement.
4) The write off of a significant deferred tax asset in 2016 by Petrotrin. Again this hits the Profit and Loss statement.
On top of all that the company had seen its revenues fall significantly in 2015 to 2018 due to lower crude oil prices. The decision to close the refinery will remain a point of contention for years to come.