the Barbados National Oil Company Limited (BNOCL) says it was buckling under more than $118 million in debt after the previous administration took a decision to subsidize gasoline, diesel and electricity bills for Barbadians.
This was revealed by the state agency in a clear-the-air statement yesterday in which it said the BNOCL went from $22 million in retained earnings in 2007 to $118 million in losses after just two years of subsidies in 2008 and 2009.
However, in the face of much “discussion and misconception in the public domain concerning the company’s profitability”, BNOCL admitted that after the losses in 2008 and 2009 it had earned profits averaging $50 million in 2010 and 2011.
But the agency claimed that much of its cash flow had been reinvested in the oil company’s operations. (GE)
