OREANDA-NEWS. Trinidad and Tobago's state-owned oil company Petrotrin that runs the country's sole refinery "may soon go out of business" because it is not profitable, chairman Andrew Jupiter has told employees.

The company that operates the 168,000 b/d Pointe-a-Pierre refinery has been spending much more than it earns, Jupiter said in a 9 October statement to employees that has been obtained by Argus.

The company "is in a perilous state," he said, without detailing the company's balance sheet.

The factors affecting Petrotrin's operations include rising debt, low productivity and escalating labor costs, Jupiter said.

Petrotrin is carrying debts of $2.14bn and owes a bond payment of $850mn in 2019.

"Oil prices are expected to remain low and volatile and the company's projected revenue for fiscal 2015-2016 (Oct-Sep) is unlikely to support its current cost structure," Jupiter said.

The OWTU oil workers union has not reacted publicly to the chairman?s assertions.

Jupiter recently replaced Lindsay Gillette after a change of government following last month?s general election.

The Pointe-a-Pierre refinery produces gasoline, LPG, kerosene, fuel oil, diesel and aviation fuel. Its main export markets are the US, neighboring Caribbean countries and Central America.

The company's financial operations have been affected over the years by the cost of upgrading several units and the installation of a gasoline optimization unit.

The upgrades included a 40,000 b/d ultra-low sulphur diesel plant that was commissioned in December 2013, five years later than originally scheduled.

The changes have allowed Petrotrin to produce fuel to meet US and European Union standards, but the upgrade that was originally projected at $600mn had a final price of $1.88bn.

Upstream, Petrotrin is the country's biggest oil producer, with around 43,000 b/d of crude production, out of total national output of 81,000 b/d.

Petrotrin obtains additional crude through imports mainly from Gabon, Colombia, Russia and Norway.