The La Pampilla refinery is a Peruvian oil refinery under the administration of Grupo Repsol del Perú S.A.C., a subsidiary of Repsol.
It is the main refinery and the most technologically advanced in the country. After the completion of the RLP-21 project in August 2016, it increased its crude oil refining capacity from 102,000 to 117,000 barrels per day (BPD), equivalent to 54.0% of Peru's total capacity.
It has a strategic location which allows it to supply the main market of the country (Lima), as well as to be the natural supplier of the Jorge Chávez International Airport and ship their products to the different terminals on the coast.
2020 was a year marked by the COVID-19 pandemic, which has generated an unprecedented global public health crisis. The pandemic and containment measures had negative consequences on the economy, which has affected the different productive sectors due to the significant drop in demand. The demand for fuels was strongly reduced and generated high volatility in fuel prices on the international market.
According to statistics from the U.S. Office of Energy Information Management, world demand in 2020 is estimated at 92.2 million barrels per day, which contrasts with 101.2 million barrels per day in 2019 and 100.1 million barrels per day in 2018. In Peru, the 2020 average demand was 146.6 thousand barrels per day, which presents a 27% decrease with respect to the 2019 average of 199.5 thousand barrels per day.
In 2020, La Pampilla's product sales volume decreased by 38% compared to 2019. This decrease in sales required adjusting the production level, so an average of 55.9 thousand barrels of crude oil per day was processed, which is 36.1% lower than 2019.
EBITDA earned was $179,642 thousand, compared to $177,189 thousand in 2019.
A noteworthy aspect has been the recognition "Carbon Footprint Peru", which La Pampilla Refinery received from the Ministry of Environment, being the first company in the hydrocarbons sector to reach level 3 by reducing Greenhouse Gas Emissions (GHG) and strengthening its pioneering commitment to decarbonization globally in the industry.
The share closed its 2020 share price at S/ 0.069 with a variation of -43.90%, from a high of S/ 0.128 in January and a low of S/ 0.051 in April.
At the beginning of 2021, the Peruvian Government announced the intensification of the health crisis and the impacts of the pandemic, establishing new confinement measures and restrictions with different degrees of severity during the first quarter of 2021. Likewise, the Government has announced its progress regarding the procurement of vaccines and immunization plans for the population, which it estimates will be implemented on a larger scale starting in the second half of 2021.
In the first quarter of 2021, it obtained an EBITDA of 77.6 million dollars as a result of the economic reactivation, despite COVID-19, as well as a progressive growth in the price of crude oil.
Revenues were US$580 million, 5.2% higher than in the first quarter of 2020, reflecting both an 8% increase in sales volume and an increase in the price of Brent crude oil compared to the first quarter of 2020.
Net income at Current Cost of Supply (CCS) for the first quarter of 2021 amounted to USD 2,201 thousand, which is lower than the net income at CCS of USD 33,734 thousand for the same period in 2020. Operating income at CCS was USD 15,186 thousand for the first quarter of 2021, compared to USD 62,728 thousand at the end of the first quarter of 2020.
During the second quarter of 2021, a sustained recovery of economic activities has been observed both in the local market and in exports. This favorable situation has been accompanied by a growth in fuel prices due to the increase in the international quotations of Brent crude oil.
In the second quarter, La Pampilla refinery obtained an EBITDA of 62.6 million dollars as a result of the economic reactivation as well as revaluations of its inventories, compared to the -43.6 million dollars obtained in the second quarter of 2020. Likewise, the Operating Income was 50 million dollars, compared to 38.9 million dollars in the second quarter 2020.
This was thanks to revenues of US$755 million, 237% higher than in the second quarter of 2020, reflecting both the 125% increase in sales volume and the increase in the average price of Brent crude oil compared to the second quarter of 2020.
Separating the equity effect and specific results, Adjusted Net Income measured under the Current Cost of Supply (CCS) methodology, was -4.7 million dollars, compared to 27.2 million dollars generated in the second quarter 2020. Operating Income at CCS was 4,695 thousand dollars at the second quarter 2021, compared to 56,473 thousand dollars at the end of the second quarter 2020.
As a result, the accumulated Operating Result as of June is 114.6 million dollars, which compares with -103.1 million dollars in the same period of 2020. Likewise, the Net Result is 64.4 million dollars, which compares with a loss of 95.7 million dollars in the second quarter of 2020.
