:quality(75)/cloudfront-us-east-1.images.arcpublishing.com/elcomercio/I3632LWPZRCD3AKOI2SM7UNZE4.png "MEF will now have more control over Petroperu's shareholders mining | DGH | economy")
The government decided to change the structure of shareholders of the government company PetroPeruReduces weight Ministry of Energy and Mines (Minem) and contribute more to the oil company's bottom line Ministry of Economy and Finance (MEF)Amid a delicate financial situation, it puts its operations at risk.
Although the company belongs to the Peruvian state, the largest weight in the decisions of the shareholders' meeting was held by the Ministry of Energy and Mines (which represented 60%) and the MEF (with 40%).
Read more: Petrobrae offers 61% stake in Lot 192 to Altamesa
Therefore, through Supreme Decree 004-2024-EM, the government recreated the participation of Petroperu stakeholders, giving greater importance to representatives of the MEF in this way:
- Minister of Energy and Mines, represents 20%Total number of subscribed and paid up shares and chairman of the board.
- Minister of Economy and Finance 20% representation Out of the total shares subscribed and paid up by the members of the Board.
- Minemin is the Deputy Minister of Hydrocarbons, which represents 20%. Out of the total shares subscribed and paid up by the members of the Board.
- Finance Deputy Minister of MEF representing 20% Out of the total shares subscribed and paid up by the members of the Board.
- Deputy Minister of Economy of MEF representing 20% Out of the total shares subscribed and paid up by the members of the Board.
Earlier, the composition was similar, 20%, represented by the Secretary General of the Ministry of Energy and Mines, now falls to the Deputy Minister of Economy.
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Recently, the president of MEF, Alex Contreras, commented that Petroperú's situation will change, “it will turn upside down,” he revealed.
“We already have a work plan to give stability to PetroPeru. There is an improvement process. We always value the information from the Fitch ratings. But I think there is relevant information that they don't consider, for example, upcoming activities,” Contreras pointed out in Latina a few days ago.
Regarding these measures, he explained that they are compatible with: providing stability to the company, speeding up the restructuring plan and improving governance; and – in the second phase – providing Petroperú with some type of facility that would allow liquidity at a competitive cost.
It is worth recalling that Prime Minister Alberto Otárola said that “there will be no new money, capitalization in favor of Petroperú (…) it will not be capitalized”.
What is left up in the air are the assurances that the MEF can make.
read more: Lot X's future is limited this month, but it risks going to PetroPeru.
Finance in Petroperu
The end must come, Following the report of the Directorate General of Macroeconomic Policy and Fiscal Decentralization of the MEF (Report No. 0004-2024-EF/60.03)In this Petroperú is one of the country's public institutions whose performance has a significant impact on the public finances of the non-financial public sector, which is why the two sub-ministries of the MEF recommend participating in the delegation. The board of this public company is state in general shareholders meeting.
With the suggested modification, The Deputy Minister of Economy replaces the Secretary General of the Ministry of Energy and Mines.
read more: After downgrading Petroperú: “It's upside down,” says MEF
DGH support in directory
For its part, the Directorate General of Minem Hydrocarbons (DGH), issued another report (Report No. 025-2024-MINEM/DGH), in which it considers it appropriate to ensure the sustainability of Petroperú.
In this way, the DGH recommends itself to provide technical support for the necessary operational technical measures of Petroperú in the hydrocarbon market, which is required by the general assembly of stakeholders in accordance with the objectives and guidelines of the current National Energy Policy.
In this regard, it was agreed to incorporate a general rule in the published resolution DGH provided technical support as required for public stakeholder meetings.
read more: What will happen now to the state oil company, without Petroperú capital?
Noting that PetroPeru still lacks clarity on its debt management, Fitch Ratings downgraded the company's long-term issuer default rating (IDR) to “B+” from “BB+” in both local and foreign currency. . It downgraded the senior unsecured notes to “B+” from “BB+”. Complete Credit Profile (SCP) stands at “ccc-“. The valuation outlook remains negative.
It is an important issue Fitch believes that additional support is needed as high levels of debt persist in an environment of compressed refining margins.
