The financials were only signed by the KPMG auditor late Friday night (and the auditor put in 7 pages of CYA caveats where KPMG had problems with the PDVSA Narnia numbers).

Rolf,

Attached, please find PDVSA's 2016 financials.

The financials were only signed by the KPMG auditor late Friday night (and the auditor put in 7 pages of CYA caveats where KPMG had problems with the PDVSA Narnia numbers).

Still, even though they are full of false numbers, the financials are bad. Very bad.  PDVSA claims that they only made $828 million profit based on sales of $42 billion and other financial income of $6 billion and says 2016's $828 million profit is down from $7.345 billion in 2015 and $9.074 billion in 2014.  If this was Liar's Poker, we would call bullshit because that $42 billion is virtually impossible to have achieved even on their claimed fictitious exports of 2.19 million bpd (being generous actual exports are closer to 500k bpd lower than that, and of that China was getting 505k bpd that they had already paid for years earlier), which would have been at last year's average price which we know was $35.15. (2.19 million bpd export x 365 days x $35.15 is just $28 billion).

There is also more insight into the Russia investments and more that I am happy to go through with you.

Happy to discuss if you wish.

Russ

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