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April 3, 2008 |
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PETROLEOS DE VENEZUELA: Debt Up 449% in 2007, 28.5% of Assets El Universal relates that Petroleos de Venezuela SA's debt increased 449% to US$13.09 billion in 2007, 28.5% of the companany's assets. According to El Universal, Petroleos de Venezuela's "sharpening indebtedness over the last 12 months drastically changed the company's accounts to the extent that its debt to net worth ratio at the end of 2007 was 28.5%, the highest in the last decade." El Universal notes that Petroleos de Venezuela's consolidated debt was US$16 billion last year, comprising: -- US$13.12 billion in long-term debt, and -- US$2.87 billion in current debt. The report says that most of the long-term debt "was contracted" by Petroleos de Venezuela in Venezuela, where it issued US$7.5 billion in debt bonds in April 2007. Petroleos de Venezuela's President and Venezuelan Oil Minister Rafael Ramirez emphasized that the firm's net worth increased 5.5% to US$56.06 billion in 2007, compared to US$53.10 billion in 2006. However, the increase was "significantly below the expansion of debt in the same period," El Universal states. Petroleos de Venezuela SA -- http://www.pdv.com/ -- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. PDVSA is one of the top exporters of oil to the US with proven reserves of 77.2 billion barrels of oil -- the most outside the Middle East -- and about 150 trillion cu. ft. of natural gas. PDVSA's exploration and production take place in Venezuela, but the company also has refining and marketing operations in the Caribbean, Europe, and the US. * * * As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela SA's long-term issuer default rating and local currency long term issuer default rating at BB-. Fitch said the ratings outlook is negative. * Moody's Sees Neg. Outlook for Global Paper & Forest Products |
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