Petroperú, Peru’s state-owned oil company, faces a challenging financial landscape. The company’s executives recently presented their economic results to the Energy and Mines Commission of the Peruvian Congress.
Alejandro Narváez, Petroperú’s president, revealed preliminary data showing a loss of US$ 968 million in 2024. The company’s financial woes stem from various factors. A negative working capital of around US$ 2 billion plagued Petroperú in the past year.
Despite the new Talara refinery’s full operation, the North Peruvian Pipeline (ONP) continued to generate losses. The ONP’s maintenance costs have been substantial, totaling S/395 million over the last three years.
Narváez emphasized that Petroperú is not bankrupt, citing a positive net worth. The company managed to reduce expenses by 10% in 2024 and aims for profitability this year.
Petroperú projects ambitious goals for 2025, including a positive gross margin of US$ 677 million and a net profit of US$ 185 million. The company’s market share in the fuel sector declined to 25% in 2024.
However, Petroperú aims to increase this to 38% by 2025. This target seems optimistic, considering the projected negative working capital of US$ 645 million for the same year.
Petroperú’s Restructuring Plan
Petroperú’s restructuring efforts are underway, with a dedicated commission working on the transformation plan. The company is collaborating with the Comptroller General’s Office for a forensic audit, partly to investigate the increased costs of the Talara refinery project.
Minister of Energy and Mines, Jorge Montero, expressed confidence in Petroperú’s leadership. He ruled out privatization and stated that no additional financial bailouts should be necessary.
In addition, the government expects Petroperú to achieve its financial targets and return to profitability. As Petroperú navigates these financial challenges, its ability to implement effective restructuring measures will be crucial.
Improving operational efficiency will also play a key role in its success. The company’s journey towards financial stability will likely impact Peru’s energy sector and economy in the coming years.
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