Energy
At the end of the fiscal year 2008, the state-run oil company Petróleos de Venezuela (Pdvsa) reported revenues and earnings higher than in the previous year. Despite this increase, Pdvsa's contribution to income tax (ISLR) and to social development programs lowered, although the price of the Venezuelan basket of crude oil averaged USD 86.49 in 2008. However, Pdvsa's contribution on royalties, extraction taxes and other imposts was slightly higher.

The state-run oil company reported revenues above USD 126.3 billion, a figure higher than the USD 96.2 billion recorded the year before, while net profits exceeded 9.4 billion versus 6.2 billion in 2007.

According to the sectorial consolidated statement of income in 2008 -available on the website of the oil corporation-, the income tax contribution (with a rate of 50 percent for the hydrocarbon sector and related activities) fell 14 percent in 2008, as measured in nominal terms, over the previous year.

The state-owned oil company made a USD 4.28 billion income tax contribution to the Treasury during the fiscal year. This figure is lower than the USD 5.02 billion contribution that Pdvsa made in 2007, and puts and end to the upward trend recorded in the last four years.

However, including royalties, oil extraction tax and other imposts, Pdvsa's contribution in 2008 was slightly higher (6.7 percent up) compared to 2007. In 2008, Pdvsa contributed USD 23.5 billion, compared to USD 22 billion in 2007.

Pdvsa's contribution to "social development" decreased. This trend was mirrored in the report of the third quarter of last year.

This item fell 68.31 percent in 2008 compared to the previous year. Last year, Pdvsa allocated only USD 2.33 billion to social programs versus USD 7.34 billion in 2007.

Social plans in decline
This reduction is likely to result in a lower allocation of funds for the social programs (also known as missions) that Venezuela's President Hugo Chávez has largely financed with funds from the state-run oil company, which at least until mid 2008 reported high revenues from high crude oil prices. However, social plans are also funded by the Government with the official national budget.

Nevertheless, Pdvsa's contributions to the National Development Fund (Fonden) increased to USD 12.41 billion versus USD 6.76 billion in 2007. Fonden has been used to finance social programs, including some plans of the Venezuelan oil company.

Costs and expenses also skyrocketed in the breakdown of purchases of crude oil, byproducts, and foodstuffs. Costs related to purchases of crude oil amounted to 39.6 billion, 40 percent higher that in 2007.

Pdvsa earmarked USD 693 million for the purchase of foodstuffs, distributed by its Pdval subsidiary. Operating expenses stood at USD 22.4 billion while exploration expenses amounted to USD 375 million.

Translated by Gerardo Cárdenas

Deisy Buitrago
EL UNIVERSAL