Financial statements 2022 at its zero hour for Petroperú

After the arrival of the new president of Petroperú, Carlos Vives Suárez, the challenges for the new Board of Directors of the oil company are divided between recovering the confidence of investors and consolidating its business model for the coming years.

Financial statements 2022

One of the main aspects that hit Petroperú’s economy in recent years was the breakdown of its financial-institutional image, after the management of Hugo Chávez Arévalo, now under investigation, failed to deliver the audited statements for the period. 2020-2021.

This impasse with the international audit PricewaterhouseCoopers (PwC) It led to him losing his investment grade and the doors were closed to him to obtain bank loans and face the fuel crisis of 2022. Finally, the subsequent administration of Humberto Campodónico managed to deliver the missing documentation and revive the oil company.

Now, the new management of Carlos Vives must define which will be the international auditing company that will review the accounts of the state company for the year 2022, a report that must be presented by March 31st.

refine to succeed

In addition to once again enjoying the blessing of investment banking, Petroperú needs to consolidate the business model. In the oil market, a profit is obtained by selling oil as it was extracted from the subsoil, and another by refining it and selling it converted into diesel or gasoline, for example. The difference in profit between one and the other is the ‘oil rent’, which Petroperú does not have today, since it is only dedicated to importing ready-made fuels and reselling them.

The energy specialist Aurelio Ochoa Alencastre stresses that the New Talara Refinery will allow Petroperú to start refining its own oil, whether local or imported, and obtain an additional profit margin that will allow it to face its own debts. Make box. But it is crucial that its gradual start ends this January, as announced.

“There it has a serious disadvantage with Repsol, which does obtain income by bringing refined oil from its parent company. Refining is the only way for Petroperú to give more competitive prices to the market”, he maintains.

Vertical integration

If you understood the business model, in which one extracts, another refines and the last one sells, you will have noticed that the circle would not be complete if Petroperú does not extract either. When a company occupies all levels of the chain, it accesses what is known as “vertical integration”, where it can soak up the profitability generated by a single barrel, which today is quoted above $80but which to extract from the earth does not cost more than $20 in Peru.

Ochoa explains that Petroperú has two options: the Talara light crude oil blocks, whose 30-year contracts are about to expire, and the operation of Block 192, the largest oil reserve in the country. For the first, Perupetro has shown its willingness to grant the Lot X, while, with the second, Minem anticipates the signing of the contract for February. Only the political decision is missing.

Focus

Humberto Campodónico, former president of Petroperu

Opportunity to reach consensus

Petroperú has gone through very difficult times as a result of the lack of consensus to determine its role in the country’s energy planning. Just as an example, in the 90s the Fujimori regime “dismembered” the company with the sale of lots of oil (in Talara and in the jungle), sold the most important refinery (La Pampilla) and all its service stations .

Today there is a great opportunity for a long-term positive consensus, since the Ministry of Energy and Mines, Perupetro and the Petroperú Board of Directors are taking advantage of synergies.

Talara is already coming into operation, oil can be exploited again, as well as making extensive improvements to the Good Corporate Governance and in the meritocratic election of its Board of Directors to avoid political interference and corruption. What is missing is a debate to achieve long-term consensus among the political, business, academic, and civil society classes and indigenous populations.

The key

Retail. Petroperú does not have taps, it only rents the name to private. They charge the wholesale price that the state company offers.

Batch. Isabel Tafurpresident of Perupetro, has offered up to 80% of Block X to Petroperú.