The Board of Directors of Petroperú proposed the privatization of the company before its General Meeting of Shareholders (JGA), made up of the Ministries of Economy and Finance and of Energy and Mines, to the effect that “private management in the management of the company is the best option to achieve a return to financial self-sustainability.”
Through a statement, the state-owned company explained that the company’s financial conditions require broad financial backing from its shareholder, which in the case of Petroperú is the Peruvian State; that is, with the resources of all Peruvians. They specified that the latest calculations indicate that an additional US$2.2 billion is required.
“In the current circumstances of a Petroperú with governance and business management exposed to the usual political appetites, it would be irresponsible and an act of immorality to request greater financing from the Statesince nothing ensures that the company will not return in the near future to request more state support, to the detriment of the fiscal coffers and the pockets of Peruvian taxpayers,” the statement warned.
The Board of Directors specified that this approach of “autonomy in the private management of Petroperú” has already been raised before the AGM, as well as before the Government – which is said to be leftist –, and they are waiting for a definition that, “in case of “If it is affirmative, it will allow us to continue with a management that we believe can and should be carried out for the benefit of Peru.”
Directory should clarify
The statement, published in the Superintendency of Stock market, does not specify the impact of all the measures on the auditor and bondholders, sector sources warned. In this sense, they urged the Board of Directors to clarify the situation with the audited financial statements (which must be delivered on May 31), as well as the possible concern of the bondholders, if the debt will be honored (it is paid every 6 months and a payment is coming up in June); Otherwise, it would be assumed by the MEF.
“These issues have not been clarified and can have profound financial impacts, since in a situation like this the payment of Petroperú’s commitments is put at risk and there is a risk of accelerating the payment of the debt,” the source warned.
Be careful with the bargaining
Aurelio Ochoa Alencastre, former president of Perupetro, recalled that Currently there is a law in force (Law 30130), which allows the entry of up to 49% of private capital in Petroperú; However, in the scenario of a pure and simple privatization, he considers that it would be complicated due to the current moment of the oil company and the debt it has for the New Talara Refinery (NRT), which would require a State guarantee, “unless they sell it at a fire sale price,” he warns.
“Petroperú has problems that are temporary, although any investor who sees a refinery of that level, one of the most modern in the world, analyzes that the future is guaranteed, but with adequate management. With the potential that Petroperú has with correct administration, without political interference, it would allow the company not only vertical integration, but also its rescue.”
Ochoa highlighted that an eventual entry of private capital to Petroperu would allow breaking the locks of the Constitution, and the state would have immediate access to more profitable links in the chain of hydrocarbonssuch as retail marketing (own taps) and oil lots in 30-year contracts.
The word
“The potential that Petroperú has without political interference would allow not only vertical integration, but also its rescue. For any investor it would be attractive, but with proper management”.
Data
- Most. The current General Meeting of Shareholders of Petroperú, made up of five people, has a majority from the Ministry of Economy and Finance.
- Results. According to the statement from the Petroperú Board of Directors, the projected ebitda for 2024 is US$135 million, “insufficient to cover any debt payment.”
Source: Larepublica
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