Petroperu’s 2025 Losses Could Be Bigger Than Previously Forecast

Alejandro Narvaez, chairman of Petroleos del Peru SA, speaks during a press conference in Lima, Peru, on Tuesday, May 6, 2025. Perus struggling state-owned oil company will lower its financial guidance in upcoming days, on lower international prices and an unexpected pause at its largest refinery. Photographer: Angela Ponce/Bloomberg Photo by ANGELA PONCE /Bloomberg RSS

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(Bloomberg) — Peru’s struggling state-owned oil company Petroleos del Peru SA will lower its financial guidance in upcoming days, on lower international prices and an unexpected pause at its largest refinery. 

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Petroperu had forecast a net loss of $163 million for the full-year 2025, but has already lost $111 million in the first quarter, according to its financial statements. It lost $805 million in 2024. 

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“I think we are going to adjust our guidance downwards, given what has happened in the first quarter,” said Petroperu’s chairman, Alejandro Narvaez, in a press conference. “In the next few days we will publish the new guidance.” 

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Petroperu has faced a myriad of financial setbacks in recent years, largely due to the construction of its $6 billion Talara refinery, which was significantly over budget, delayed and whose construction required a large amount of debt. In April, Peru’s government agreed to convert 6 billion soles ($1.64 billion) worth of debt it had with the state-owned company into equity. 

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Narvaez said the Talara refinery continues to be on pause due to anomalous ocean currents that prevent its oil from being transported. He said Talara had too much inventory at the moment and didn’t have the space to store excess production. It will be on pause at least until May 9, executives said. 

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The company is also trying to get the Energy and Mines Ministry to assume financial responsibility over a massive oil pipeline that goes from Peru’s Amazon rainforest to the Talara refinery on the coast. The oil pipeline has not transported any oil for years and was expected to cost Petroperu $112 million in 2025. 

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But he said the company continues to go through the same cash crunch that has impacted the company for years now. 

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“What overwhelms and complicates us is to have short-term obligations that are higher than our short-term accounts receivable,” Narvaez said. “That stresses our cash flow, but we are coming out of it, we haven’t had any issues with missed payments.” 

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