$ Millions

1990 Money

DETERMINATION OF GROSS INCOME REQUIRED TO BREAK EVEN

(GEARED FOR CHINESE CRUDE)

'80

'81

182

'83

$84

*85

'86

'87

180

'89

'90

*91

192

193

194

$95

196

197

CAPEX

(56)

(224)

(224)

(56)

OP COSTS

(15)

(15)

(15)

(15)

(15)

(15) (15)

(15)

(15)

(15)

(15)

(15)

(15)

(15)

(15)

&

GROSS INCOME

X

X

X

X

X

X

X

X

X

X

X

MET INCOME

TAX AT 17X

OU HET INCOME

X-15

X-15

X-15

X-15

X-15

X-15

X-15 X-15

X-15

X-15

X-15

X-15

X-15

X-15

X-15

nil in

0.17% lot Year -2.55

0:17x 0.17x 0.17x -2.55

-2.55

0.17x 0.17x 0.17% -2.55 ~2.55 -2.55 -2.55

-2.55

-2.55 -2.55

0.17x 0.17x 0.17x 0.17x 0.17x 0.17x 0.17x 0.17x

-2.55 -2.55 -2.55 -2.52

-2.55

TAX RELIEF

AGAINST DEP.

10.7

6.6

6.0

5.5

5.0

4.5

4.1

3.7

3.1

1.7

0.3

CASH FLOW

(56)

(224)

(224)

X -60.3

0.33x -5.85

0.83% -6.45

0.83x -6.95

0.93x 0.93x -7.45 -7.95

0.93x 0.83x 0.83x -8.35 --8.75 -9.35

0.83x 0.83x -10.75 -12.15

0.83x 0.83x 0.83x 0.83x -.17x -12.45 -12.45 -12.45 -12.45

+2.55

To break even:

12.45x

X

695.85 $55.87m/an

annum :

or

$55.87m

11.045mt

$5.06mt to break even over 15 years

DOF 5%

1.1576

1.1025

1.05

0.9524 0.90703

0.8638 0.8227 0.7855

0.7462 0.7107

0.6768

0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4910

PRESENT VALUE

(65)

(247)

(235) X-60.3

0.79x 0.75x -5.57 -5.85

0.72x 0.68x 0.65x -6.0

-6.13 -6.22

0.62x

0.59x -6.23 -6.22

0.56x

0.54x

0.44x 0.45x -6.33 -6.93 --7.46 -7.28 -6.93 -5.60

0.49x 0.51x

0.42x -0.08x -6.29 +1.23

To get 5% real:

9.14

=

$698.11m

X

www

$16.3&m

76.39

Of

$6.9mt

11.045

APPENDIX 5

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