(ENAP, 28.Oct.2021) — Empresa Nacional del Petróleo (ENAP), achieved a profit of Ch$90bn (US$109.9mn) in the third quarter of this year, compared to a loss of Ch$103bn (US$127.2mn) in the same period of the previous year, equivalent to a better result of Ch$190bn (US$237.1mn).
These figures reaffirm the positive trend that the company has been registering since the second half of last year, and which only confirm the effectiveness of the plan for efficiency, productivity, savings and control of investments and incorporation of digital technology, prepared by the Board of Directors and the current Administration, and launched at the end of 2018.
“The third quarter was very challenging for ENAP, we had to react quickly to a strong increase in demand, which exceeded 2019 levels, when the pandemic did not exist. This increase exceeded market projections, forcing us to quickly adjust all our logistics and refinery production, so as not to cause shortages in the country,” said the CEO of ENAP, Andrés Roccatagliata.
The company’s financial situation is well on track as a result of the solid execution of its strategic plan, together with a continuous process of cost containment and prioritization of investments, which has enabled it to reduce debt by Ch$570bn (US$700mn) from its highest level and reduce interest payments by more than Ch$40bn (US$50mn) annually. “The company is on strong ground from a financial point of view, which allows it to face the next two years with virtually no maturities. Likewise, it has managed to lower the interest rate and reduce its debt. From an investment point of view, we have an ambitious plan that amounts to $1.9tn (US$2.33bn) for the next few years, which contains an important component of environmental measures. This investment plan will be executed without resorting to greater indebtedness, thanks to the growth in Ebitda, which we estimate will reach $646bn (US$ 800mn) this year.”
Regarding how the end of the year is coming, Roccatagliata pointed out that it will be a complicated quarter, due to the maintenance stoppage of the Aconcagua Refinery, which supplies approximately 30% of the fuels consumed in the country.
For us, the impact is great from the point of view of the results, because it means reducing the production of the refining in a very important way, which leads to a strong increase in costs, as a result of this critical, but necessary activity, which we must also execute with the highest safety standards for people.”
In terms of demand, the executive explained that “We estimate that current levels will be maintained to the extent that there is no resurgence of the pandemic, although the demand for kerojet will continue to be low, given that air activity has not recovered to pre-pandemic levels.”
He also reiterated his concern about the rise in the price of crude, which impacts the pockets of all Chileans and that, in the case of ENAP, has a direct effect on the increase in its costs and working capital, as it imports 99% of the crude that it refines. “We maintain our concern about the high price of crude oil and the negative expectations that exist around the increases that could come.”
Andrés Roccatagliata highlighted that the financial improvements achieved by ENAP must be taken care of and maintained since they allow the State to avoid capitalizing the company again and, instead, allocate those resources, for example, to the construction of hospitals, schools, homes or meeting other needs in the interest of all Chileans.
Finally, the executive thanked the work of each and every ENAP collaborator, who, in addition to having good performances, received various recognitions in different areas of action. Among the distinctions we highlight the Covid-19 Seal awarded by Mutual de Seguridad, the “2021 Smart 50 Awards,” the Impulsa Female Talent Award granted to ENAP Sipetrol, the 2021 Executive Award, the 2021 Mining Woman Award and Woman in Cyber.
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