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RECOPEANNUALREPORT2014
Situation
Financial andAdministrative
The financial situation of the Company during the year 2014 shows a
positive result and improvement in comparison with the closing results for the year
2013. To December of 2014, RECOPE served corporate activities with the resources
collected for fuel sales and using as supplementary short term financing through
credit lines, for fuel purchases.
It must be noted that the price conditions on the international market
were favorable for achieving these results, as during this period the average CIF price
of oil stood at $107.59/bbl, meaning $8.07/bbl lower than in the year 2013, which,
coupled with the increase in the selling price in the ordinary study approved by the
Regulatory Authority for Public Services (ARESEP), allowed RECOPE to recover its
financial situation and close the termwith profits.
During the period 2014 exchange rate situation also impacted
international trade activities. Since RECOPE purchases its imports in dollars, and
domestic sales are made in colones, the constant change in the dollar generated a
greater foreign exchange rate expense.
Notwithstanding the foregoing, the balance of accounts payable for oil
imports decreased by 49% as compared with the previous period. This year, the
increase in import volume for increasing inventory and the exchange rate factor led to
some of the oil bills required financing with credit lines, to be paid in 90 days, during
and at the end of the year.