Link Securities | Repsol, Spain’s largest oil company, has estimated that it can recover €4.55 billion from Venezuela, which is currently trapped in the country, according to the newspaper Expansión.
The figure includes loans and outstanding invoices from PDVSA, the state-owned hydrocarbon monopoly. It also includes the accounting provisions that Repsol has been making for years to cover the impairment of its assets in the country, given the chaotic situation in the hydrocarbons sector following its nationalisation in 2007.
The data is reflected in Repsol’s annual report, presented a few days ago. This is the first time the company has detailed how much it can recover. It does so under an analysis it calls the ‘recoverability’ of its investments in Venezuela, particularly in view of the PwC audit.
Repsol details that there is a total of €3.603 billion linked to outstanding loans with PDVSA. Of that amount, €584 million is currently outstanding and another €3.019 billion is provisioned. In addition, there are another €947 million in outstanding invoices, mainly for gas supplies. Of this amount, €379 million are outstanding invoices and another €568 million are provisioned. In total, there is a €4.55 billion financial hole, of which €963 million are debts and outstanding invoices, and €3.587 billion are provisioned.
