(Bloomberg) – Peru's troubled state-owned oil company Petroleos del Peru Sa will lower its financial guidance in the days to come, with lower international prices and unexpected pauses at the largest refinery.
Petroperu predicts a full-year net loss of $163 million, but has lost $111 million in the first quarter, according to its financial statements. It lost $805 million in 2024.
“In view of what happened in the first quarter, I think we will adjust our guidance downward,” Petroperu’s chairman Alejandro Narvaez said in a press conference. “In the next few days, we will release new guidance.”
Petroperu has faced numerous financial setbacks in recent years, mainly due to the fact that the construction of its $6 billion Talara refinery is significantly beyond budget and delayed, and its construction requires a lot of debt. In April, the Peruvian government agreed to convert its 6 billion bottom line (US$1.64 billion) with state-owned companies into equity.
Narvaez said the Tarala refinery continued to pause as abnormal ocean currents prevented its oil from being transported. He said that Talara currently has too much inventory and does not store too much production space. This will pause until at least May 9, executives said.
The company also seeks to put the Ministry of Energy and Mining financial responsibility for the large-scale oil pipeline from the Amazon rainforest in Peru to the Tarala refinery on the coast. The oil pipeline has not transported any oil for many years and is expected to cost $112 million in 2025.
But he said the company continued to experience a cash crunch that had impacted the company over the years.
“It’s overwhelming and complicated to assume short-term obligations above our accounts receivable,” Narvaez said. “This emphasizes our cash flow, but we have emerged from it and we don’t have any missed payment issues.”
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