Declining production will continue to hit Pdvsa

Exports of Venezuela’s state-run steel and aluminum companies declined 45 percent last year

Venezuela's executive office submitted to the Securities and Exchange Commission (SEC) the 2009 annual report in which the government recognized that state-run oil company Petróleos de Venezuela (Pdvsa) will continue being affected by declining production.

The report, which was prepared by the Ministry of Planning and Finance, includes Pdvsa's consolidated results, characterized by falling revenues, lower earnings, and a growing debt. The report conceded that the oil industry was hit by lower production and a decline in oil prices.

Financial authorities acknowledged that production and expenditures have been key factors in the financial situation of the oil industry. They added that these factors will continue to hit the industry in the future.

The annual reports highlights that Pdvsa's oil contractors have filed complaints against the state-run oil company over late payments.

The Ministry of Finance also reported the economic situation of Guayana's basic industries (steel, aluminum), where output has tumbled due to the energy crisis.

Steel production fell 31 percent in 2009, whereas aluminum output decreased by 6 percent and alumina dropped 14 percent. Total exports of such commodities declined 45 percent last year, the report added.

Translated by Gerardo Cárdenas

Mayela Armas H.
EL UNIVERSAL