The CEO said that the results show the highest EBITDA in ENAP’s history, a profit that for the second consecutive year exceeds 550 million dollars.
Empresa Nacional del Petróleo (Enap) reported its 2023 economic results, with an EBITDA of US$ 1.4135 billion, the largest in Enap's history; profits of US$ 565.8 million and a reduction of its consolidated debt by US$ 602 million. The above, in a complex local and global scenario.
The 2023 EBITDA is 2.5% higher than in 2022 and, although profits for the period were slightly lower than the US$575.3 million in the previous year, this result includes a net impairment of US$113.1 million due to the impairment of some of the subsidiary's assets in Argentina. Without this adjustment, profits would have exceeded US$680 million.
The company also reported that, during the fourth quarter of 2023, it completed a transfer of resources to the Treasury for US$400 million, requested by the Minister of Finance as an advance on 2023 and 2024 profits.
The CEO of ENAP, Julio Friedmann, noted that "the results for 2023 are very positive and not only because of the profits obtained but also because we carried out an important financial order, which is fundamental for the company’s development. We managed to reduce our debt in a particularly challenging context due to external and internal aspects, such as global volatility in commodity prices, decreasing margins in refining, and weak domestic demand. Without the impairment in Argentina, our profits would have approached the 700 million dollars we projected until November 2022."
Friedmann added that “for Enap these results are historic, but 2024 will be an even more complex year and, as we have already said, we foresee narrower results. Our focus, hand in hand with our workers, will be on cost containment and strengthening our operational performance."
Positive results in the Refining & Commercialization line
In the breakdown by business unit, the Refining and Commercialization (R&C) line obtained a pre-tax result (RAI) of US$769 million, compared positively with US$629.8 million in the previous year. Enap explains this mainly by a 27% increase in sales of its own production, lower international refining margins, and higher distribution costs due to higher prices and logistics costs.
Meanwhile, the Exploration and Production (E&P) line for its operations abroad obtained results with a loss of US$33 million due to the recognition of a gross impairment of assets in the Argentine subsidiary for US$174 million.
In addition, the results of operations in Egypt were affected by the 17% decrease in the price of Brent with respect to the previous period. Ecuador's operations contributed a gross margin of US$119 million, in line with 2022.
Finally, the E&P line of Enap Magallanes obtained pre-tax profits of US$28 million, while, in 2022, this figure was US$56.5 million. This result is explained by lower condensate and liquefiable prices and higher operating and maintenance costs.