FDO’s operating expenses and maintenance costs relating to tank farms are low seen from an international perspective. FDO applies generally accepted accounting principles and policies for financial reporting and cost allocation.
Principles governing the calculation of FDO’s unit costs per category:
In general, the calculation includes all costs. The only exception is costs relating to activities aimed solely at creating income for FDO, e.g. staff costs and electricity costs incurred in user pumping.
The following types of costs are included:
- Staff costs
- Administrative expenses, e.g. rent etc.
- All operating and maintenance costs relating to stockholdings
- Refreshment costs incurred in keeping the products sellable
- Costs relating to renting of storage space, e.g. for crude oil and ethanol stocks
- Opportunity costs relating to capital tied up in products. For this, FDO applies the socio-economic discount rate (ref. fact sheets 2013 issued by the Danish Ministry of Finance). For stock valuation, the average of Platts’ prices over the year is applied and, for conversion into Danish kroner (DKK), the average dollar rate is applied.
- Depreciation and amortisation are based on the annual report for the preceding year.
Most costs are broken down by m3 or tons since they do not relate to any specific category. However, the depreciation of certain stockholdings may be added directly to a category, just as opportunity costs will depend on the product price in the specific category. The costs of crude oil and feedstock are broken down by the other categories pro rata to the shares covered by the respective categories.
Monthly budget per product category for 2023:
Category 1: 21,73 DKK/m3
Category 2A: 28,79 DKK/m3
Category 2B: 27,74 DKK/m3
Category 3: 18,02 DKK/MT
The monthly accounts per product category for 2022 including the audit opinion are available here (in Danish):
Category 1: 21,70 DKK/m3
Category 2A: 36,81 DKK/m3
Category 2B: 27,03 DKK/m3
Category 3: 4,45 DKK/MT
Category 4: 13,71 DKK/MT (crude).