08/02/2010

ENAP earns US$242 million in 2009 and reverses the heavy losses of 2008

 

ENAP's chief executive, Rodrigo Azócar, said that the company achieved its highest profitability in the last 15 years.

Empresa Nacional del Petróleo produced a consolidated net income of US$ 242 million in 2009, thus reversing the losses of 2008 and achieving its highest level of profitability in 15 years, the company’s chief executive, Rodrigo Azócar, reported today.

This is the result after income tax of 17% and foreign taxes. Net income, measured as the result after the additional special tax applied to state-owned companies (DL 2.398) was US$ 200 million, which compares favorably with the loss of US$ 956 million in 2008.

“There are only a few cases where losses of US$ 1,000 million have been reversed in just 12 months while, at the same time, correcting the strategic direction to return to the offensive in the market and continue growing. ENAP is one of them, so the year 2009 will remain marked as one of the best years in our company’s history”, said Rodrigo Azócar at a press conference.

He added that “as well as reversing the heavy losses of 2008, we have also been able in 2009 to restore the confidence of our customers, suppliers, banks and investors”.

The gross margin in 2009 was US$ 278 million, a figure that compares positively with the negative margin of US$ 744 million the year before. The better margin is mainly explained by the 47.3% reduction in the cost of sales, against a 41.7% reduction in sales, both heavily influenced by the fall in international prices on both oil and refined products.

Administrative expenses in 2009 were US$ 97 million, implying a reduction of 9.3% compared to 2008.

Financial expenses fell by 14.4% compared to 2008, from US$ 201 million to US$ 172 million respectively, mainly reflecting lower interest rates on ENAP’s debt and excellent access to its present borrowing terms and conditions.

An exchange difference was booked in 2009 of US$ 52 million, compared to a loss of US$ 129 million in 2008.

Prices of crude and refined products

The international crude oil price, based on the West Texas Intermediate (WTI) benchmark, averaged US$ 62 per barrel, 38.2% lower than that of 2008 (US$ 100 per barrel).

The prices of refined products on the US Gulf COSAT, which ENAP uses as a benchmark for domestic price levels, continued their downward tendency compared to 2008. The average price of diesel was US$ 70 per barrel in 2009, 43% below the average for the previous year. In the case of gasoline, the average for 2009 was also US$70 per barrel, a fall of 34% compared to the average for 2008. Finally, the price of fuel oil No.6 averaged US$ 56 per barrel, a fall of 23% with respect to 2008.

Assets, financial debt and EBITDA

ENAP’s total assets at December 2009 rose by 4.6%, from US$ 5,318 million in December 2008 to US$ 5,560 million in 2009. This increase is mainly explained by the higher value of inventories and an increase in property, plant and equipment, offset by a reduction in recoverable taxes.

Total liabilities at December 2009 amounted to US$ 5,116 million, a slight reduction compared to the US$ 5,121 million at December 2008. ENAP’s financial debt plus interest-bearing supplier credits rose from US$ 3,637 million in December 2008 to US$ 4,015 million at the end of 2009, as a result of an increase in working-capital needs following the 72% increase in the crude price. However, as mentioned above, ENAP achieved a large reduction in financial expenses.

EBITDA generated by ENAP in 2009 were US$ 546 million, comparing positively with the negative EBITDA of US$ 641 million in 2008.

Santiago, February 8, 2010.