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36
Annual Report 2013 www.recope.com
PROFIT & LOSS STATEMENT
Net sales:
Total fuel sales for the year 2012 were
¢1,587,759 million, compared to the 2013 term which totaled
¢1,620,674 million, for an increase of ¢32,915 million (2%).
The sales volume increased in the same proportion (2%). The
monetary growth during the year 2013 is a result of the sales of
diesel 50, Plus 91 gasoline, Super gasoline and AVGAS (100LL),
which represent 82% of the total income.
Cost of sales:
Cost of sales reflect the import costs,
plus fuels and inventory, showing an increase of ¢3,942 million
(0.26%), with regards to the year 2012.
The increase in cost is lower than the increase on
sales, resulting in an increase of the gross sales margin, mainly
explained by the decrease in international fuel prices, stability of
the exchange rate during the period and the growth in local sales
as a result of a study price approved by ARESEP.
The CIF fuel cocktail import prices for the period under
analysis shows a decrease of 5.04/barrel, as a result of a variation
on the average cost of $120.70/barrel, CIF 2012, to $115.66/barrel,
CIF 2013.
Cost of sales represented 94% of sales for the year 2012
and 92% for 2013. For every 100 colones sold by the company,
a margin of ¢6 and ¢8, respectively, was obtained to cover
operating expenses. This shows an improvement in operations
for the year 2013.
Gross profit on sales:
Gross profit margin,
after deduction of operating expenses, yields
operating profits with a significant improvement in
comparison with the year 2012. However, availability
of financial resources for RECOPE in the year 2013
decreased in part to the significant payment to the
Tax Authorities for income tax 2009-2010, as well
as commissions, financial expenses and interests
resulting from interpretation of Law 7722 (Tax Law)
and Law 7593 (Tariff Law) by ARESEP.
Also, even though for this term ARESEP
applied various adjustments increasing fuel sale prices
during the first months, prices were lowered during
the last months. The formula for adjusting the sales
price in itself presents a time gap in the calculation
methodology, as it takes Platt’s average prices for the
15 days prior to the last calculation date, generating
said gap in the application of prices of approximately
45 days, as prices are effective for the following month.
To a certain extent, this affects resource availability
and financial balances.
Additionally, exchange rate accounts show
an increase, as the rate for colones to dollars has been
stable for the last two terms analyzed, although the
last few months of the year 2013 presented important
fluctuations.