Petroperu’s board plans to sell a minority stake in the state-owned oil firm early next year, its chairman Oliver Stark said, as the company edges toward its first annual profit since 2021. Stark, who returned as chairman in August, described the firm as being in “survival mode,” burdened by $7.5 billion in debt and cost overruns from the Talara refinery that opened in 2023. Despite these challenges, strong refining margins driven by disruptions in the Strait of Hormuz helped Petroperu report a net profit of over $120 million in the first half of the year.
Stark expects a full-year net profit of around $350 million, its largest since at least 2016. A $475 million bridge loan from JPMorgan Chase & Co. and Citigroup Inc. has eased liquidity pressures, part of a $2 billion funding package expected to close in mid-November. The board is also considering job cuts and debt restructuring.
Stark emphasized the need for political independence, citing the central bank’s stability under Governor Julio Velarde. He aims to keep Petroperu focused on becoming self-sufficient, paying taxes, and contributing to the country. While he may seek support from President Keiko Fujimori, who has criticized repeated bailouts, private investors can legally own up to 49% of the company.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing