Shaping the Energy Future: Partners in Sustainable Solutions

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Shaping the Energy FuturePartners in
Sustainable Solutions
Mr Bob Goldman VP Finance
World Petroleum Congress
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World Petroleum Congress Finance Report
Topics Covered

• 2004 FINANCIAL RESULTS
• 2005 YEAR-TO-DATE RESULTS
• MEMBERSHIP DUES STUDY
• NEW RATE STRUCTURE PROPOSAL
• 2006 BUDGET PROPOSAL
• THREE YEAR CONGRESS BUDGET ESTIMATE
• ELECTION OF INDEPENDENT AUDITOR

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World Petroleum Congress Finance Report 2004
results

• 2004 AUDITED FINANCIAL RESULTS ( in thousands)
• UNQUALIFIED OPINION ISSUED BY BIRD LUCKIN
• DEFICIT FOR THE YEAR OF 81 (BUDGET -80)
• 19 REDUCTION IN REVENUE (190)
• 6 COUNTRIES HAD MEMBERSHIPS REVOKED OR SUSPENDED
  DUE TO SLOW PAY
• NEW DEPRECIATION POLICY INITIATED
• GENERAL FUND AT YEAR END 620 (2003 702)

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World Petroleum Congress Finance Report 2005
update (,000s)
30/06 YTD BUDGET 2004 INCOME National Dues
115 135 117 Congress 0 250
0 Handbook 10 50 15 Other 16
19 33 141 454 165 EXPENSE Office
Salaries 53 119 130 Other Office Costs 18
54 59 Travel 20 35 36 Congress
0 20 10 Other 5 35 23
96 263 246 SURPLUS 44 191 (81)
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World Petroleum Congress Finance Report Rate
structure

• WPC RATE STRUCTURE PROPOSAL
• Membership dues survey indicates WPC creates
  value
• Dues formula should be revised to be based solely
  on country production and consumption of crude
  oil and gas
• Flat rate rejected
• Differentials in rates should be reduced to be
  more competitive
• Five brackets proposed (tonnes in millions)
• Production/
• Consumption Countries Fee in s
• 1000 2 3 7,500
• 300 1000 7 11 4,000
• 100 300 16 26 2,500
• 50 100 9 15 2,000
• 0 50 28 45 1,200
• Includes countries whose
  membership has been cancelled

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World Petroleum Congress Finance Report
Council Approval

• I would like to recommend to the Council for
  approval the change in methodology of the dues
  rate structure as proposed by the Executive
  Committee, with the understanding that the rates
  will be reevaluated periodically based on changes
  in British Petroleums annual Statistical Review
  of World Energy and the financial needs of the
  WPC.

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World Petroleum Congress Finance Report 2005
Proposed Budget (000s)
2005B 2006 2007 2008 INCOME National
Dues 135 125 127 129 Congress 250 0
0 350 Handbook 50 16 16 60 Other 19
19 17 16 454 170 170 555 EXPENSE Office
Salaries 119 170 179 186 Other Office Costs 54
63 64 64 Travel 35 46 47
48 Congress 20 15 15 15 Other 35
42 39 39 263 333 344 352 SURPLUS 191 (163
) (174) 203 GENERAL FUND 811 648 474 677
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World Petroleum Congress Finance Report
Council Approval

• I would like to propose for the Councils formal
  approval of the 2006 WPC budget showing a deficit
  of 163,000 as recommended by the Executive
  Committee based on the revenue and cost
  assumptions presented today. .

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World Petroleum Congress Finance Report
Council Approval

• I recommend that the Council approve the
  appointment of Bird Luckin, U.K. Chartered
  accountants to prepare the audited financial
  statements of the World Petroleum Congress for
  the calendar year 2005 in accordance with
  generally accepted accounting principles of the
  United Kingdom.