VENEZUELAN OIL CONCESSIONS
THE annual general meeting of the Venezuelan Oil Concessions, Ltd., will be held at Shell-Mex House, London, on June 20th.
The statement of the chairman (Sir Andrew Agnew, C.B.E.), which has been circulated with the report and accounts, is as follows : Ladies and gentlemen,—Anticipating your approval, I am circulating with the annual report and accounts the remarks which I should other- wise have made at the annual general meeting. This will enable share- holders to obtain all the available information at minimum incon- venience to themselves and will involve minor savings in various directions.
As you will observe, the report is considerably shorter than pre- viously, it having been decided to eliminate all information regarding production and field operations.
I shall refer briefly to the accounts. You will note that profit for. the year is £1,103,666, which is £178,318 lower than last year, but for the reasons already given I do not propose to compare the two years' results in detail. Turning to the balance-sheet you will see that capital expenditure has fallen to the low level of £357,000, which comprises mainly routine requirements of well casing, pumping units, and machinery. Your board is satisfied that adequate allowance has been made for depreciation. Stocks of materials have increased from LI,16I,000 to Lx,564,000, owing partly to higher purchase costs and partly to the necessity, under present conditions, of buying further ahead of requirements than is customary. Oil in stock, debtors, investments at market value and cash together total £2,156,000, and creditors, including taxation reserves, bills payable and other liabilities,
L2,294,00o. Of this latter figure £r,366,000 represents taxation reserves.
There is one event to which I should like to refer—namely, the change in the Venezuelan Presidency, which took place in April last. The term of the outgoing President, General Eleazar Lopez Contreras, who took office in 1936, has by common consent represented an outstanding epoch in the development of Venezuela. His successor, General Medina, is a man with similar democratic outlook and ideals, and I feel that we may look forward with confidence to a continuation of the country's political, social, and economic progress. I should not like to omit, even from this short statement, a word of apprecia- tion froni the board, and I am sure also from the shareholders, of the valuable services which have again been rendered by our management and staff, both in Venezuela and at home. Numerous members of the staff have, of course, joined the services, which throws an added strain on those remaining, and the important work which they are doing is much appreciated.
The formal resolutions will be proposed at the meeting in the usual way.
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