27
2016 ANNUAL REPORT
and consumers had more disposable
income, fuel consumption increased.
Therefore, the decline in revenue
registered in 2016 was primarily
caused by price variations within the
international market. In spite of the fact
that crude oil prices in 2014 averaged
about $90 USD per barrel, by December
2016 the price had dropped to $53.12
USD per barrel (representing more than
a 44% decline). In addition, the average
price per barrel of the CIF value of import
for hydrocarbons dropped by $11.03/
bbl in relation to December 2015, when
the price of crude oil closed at $64.15/
bbl. This undoubtedly had an effect on
the cost of sales and led to the price
adjustments that caused the decrease in
revenue.
In light of the above, the cost of sales
accounted for 90.6% of total sales in
2016 (90.91% in 2015). This reduction
represented a 5.32% decrease in relation
to the previous year (equivalent to $150
million in absolute terms).
Since the year-over-year decline in sales
revenue is lesser than the decrease in the
cost of sales, and considering that the
gross profit sales exhibited a decrease
in 2016 in relation to 2015, the gross
profit margin increased from 9.09% to
9.40%; this resulted in a smaller margin
for covering expenses.
2016 EROGATIONS
MILLIONS OF DOLLARS
EXPENSES
AMOUNT
PERCENTAGE
Hydrocarbons import
$ 1,955
90.44%
Wages
79
3.64%
Goods and services, taxes and others
52
2.40%
Transfers and debts
27
1.25%
Investments
49
2.27%
TOTAL
$ 2,162
100.00%
Source: Data provided via e-mail by the Office of Finance, February 2017. San Jose, Costa Rica.
$2,157
millions, total sales
revenue in 2016
Expenditures
Expenditures rose to $2,162 million.
As shown in table, expenditures were
primarily funded with: the proceeds
obtained from the sale of hydrocarbons;
the BNP-SG loan; the placements of
a slight difference (0.60%) with respect
to the real exchange rate. The anual rate
of inflation as at December 2016 was
0.77%, according to the official website
of the Central Bank of Costa Rica.
securities; and other revenue streams.
The value and the relative weight of the
expenditures as at December 2016 were
as follows (in millions of dollars):
The following were noted in regards to
the expenses registered on December
31
st
, 2016:
The resources available for the purchase
of hydrocarbons as at December 2016
were greater than expected, percentage-
wise and in absolute terms. This can be
partly explained by the behavior and the
conditions of the international market,
and by the substantial variations in the
exchange rate of the Costa Rican colon
(CRC) to the United States dollar (USD).
The average CRC/USD exchange rate
used to create the initial budget presented
