Petroperú in crisis: MEF and Minem convene a Shareholders’ Meeting

Almost a month after the inauguration of the only energy megaproject in recent years: the new Talara refinery, its operator Petroperu it is headed to fall into default, and without hints of correction from its directors and neither from its owners, that is, the State itself.

downgrade

The day before, Standard & Poor’s (S&P) reduced the rating of the first company in Peru, from the BBB- grade to the BB+ grade, a step where the ‘junk bonds’ are located. This review is due to the lack of financial transparency and the weakening of Petroperú’s governance.

Enrique Díaz, founding partner of MC&F Consultores, explains that this review of the rating indicates that the state company is losing credibility and warns that there would be a possibility that you will not honor your financial obligations.

However, if its financial information is not made transparent or its management is improved, the financial rating could continue to be reduced.

“Today it is a high-risk bond, but it can still pay off. The extreme is default, when they already tell you that you cannot pay, but it is not the case yet, by far we are not there”, added the expert.

In the words of Petroperú’s corporate finance manager, Jesús Fernando de la Torre, the state-owned company’s audited financial report is expected to be ready by August this year, he told Bloomberg. The previous auditor, PwC, offered to have the financial statements next June. Given Petroperú’s refusal, the Comptroller’s Office announced a new public contest to choose an auditor.

shared responsibilities

According to the fifty-first article of Petroperú’s statute, it is the power of the company’s board of directors to control the operation of Petroperú, directly or through the general management. Thus, the directors: Mario Contreras, Rafael Zoeger, Carlos Palacios and Juan Pari, in addition to Hugo Chávez, director and general manager at the same time, would be responsible for reducing the company’s investment grade.

But not only them. In the opinion of various specialists in the energy sector, There is also responsibility of the General Meeting of Shareholders –made up of the Ministry of Energy and Mines and the Ministry of Economy and Finance– whose actions would have been at least lax.

In a dialogue with La República, the director of Petroperú Juan Pari questioned the rating agency, since it indicates that it is not taking into account any economic indicator and they only assume that the financial results cannot be audited within the established period.

“Our point of view is that the financial statements have come out, rather, positive, and the comparison with the previous year is extremely interesting and has come out positive, those results have to be audited,” said Pari, who avoided commenting on whether the manager general must remain in office.

irregular income

In a letter addressed to President Pedro Castillo, as well as to Prime Minister Aníbal Torres and to the heads of the MEF and Minem, the Union of Administrative Workers of Petroperú (STAPP) denounced the irregular entry of personnel into the company, replacing career workers.

“He has placed (Hugo Chávez) in replacement of those who he has mistreated with these abusive imposed personnel actions, with personnel from outside the company without experience and lacking knowledge of the oil industry. and coming from institutions that do not reflect any guarantee of probity due to the investigation processes to which they have been subjected and, coincidentally, coming from the Regional Government of Ancash, a Regional Government well known in the offices of the Judicial Power”, denounced the union.

emergency board

At the close of the edition, this newspaper learned that in the face of the institutional crisis that Petroperú is going through, a General Shareholders’ Meeting was convened at the central offices located in San Isidro. Ministers Carlos Palacios, from Minem, and Oscar Graham, from MEF, attended. There were two topics on the agenda: the financial situation of Petroperú and the contracting of the auditing company.

According to well-informed sources, in the Ministry of Economy and Finance there is concern about what is happening in Petroperú, even since the previous administration of former Minister Pedro Francke, so much so that it was proposed to change the current general manager Hugo Chávez; however, it did not materialize because the latter has the full support of the President of the Republic, Pedro Castillo, as he has expressed in various appearances in the media.

Despite the rumors that spread yesterday about the restructuring of the board and Chavez’s departure, this outlet was able to confirm that there will be no changes in the state company despite the complicated situation of the company.

Control actions from Congress and the Comptroller

From the Congress they have also ruled on the situation of the state company. The president of the Energy and Mines Commission, Enrique Alva, has called for the immediate dismissal of Hugo Chávez from the position of general manager.

In addition, it has requested financial information on Petroperú; as well as the situational status of the hydrocarbon exploitation contracts, of lots 64, 192 and I (Talara).

Meanwhile, Comptroller Nelson Shack has summoned the Ministers of Economy and Energy and Mines to find out what is happening in Petroperú.

“We are very concerned about the things that are happening in Petroperú regarding the financial audit and that the risk rating agencies have lowered the rating of the bonds that have been issued. That can potentially cost the country many millions of dollars and that is why I have summoned the two ministers who are the owners of Petroperú, who are present at the General Shareholders’ Meeting”, said.

Data

Debt. Currently, Petroperú has a bond debt of US$ 3,000 million from the PMRT and US$ 1,300 million of the syndicated loan with Cesce of Spain.

Bondholders. If a debt call is exercised, there are US$ 4,300 million that Petroperú must honor its bondholders. At the end of 2021, Petroperú reported profits of US$106 million.