Operating Cash Surplus Determinations

The paper defines the concept of operating surplus. Then, it is compared to thegross operating surplus and the differences are identified. The two calculationmethods are presented next: (1) operating revenue less operating charges and(2) the gross operating surplus less ΔWCN (Working capital needs) lessimmobilised production less stored production less other operating revenues).Then, a three year study is presented (2005-2007) and the results areinterpreted. Then, there is a correlation between the operating cash flow surplusand the operating cash flows.