Petroperú is a Peruvian state-owned company dedicated to petroleum products.
The improvement in business expectations caused by the progress of the vaccination process and the economic recovery of the main economies of the world has been supporting the prices of oil and other raw materials. This has led to the renewal of inventories at a higher cost and the increase in the volume of sales due to the greater transit of the population, which in turn caused an improvement in the operating profit.
As of the third quarter of 2021, the Company registered a loss of 38.3 MMUS$, lower than the loss recorded as of September 2020, which amounted to 116.6 MMUS$. This behavior is mainly explained by the renewal of inventories at higher cost, the increase in sales volume revenues due to the recovery of the international price of crude oil and derivatives, the higher consumption of the population due to higher traffic, and lower operating expenses.
The Company maintains its same strategy as before COVID 19; "the Company maintains its first objective as a strategic company of the State, which is to supply the national market with quality products, reaching all regions of the country with the firm purpose that the country's economy is affected as little as possible by this emergency situation," said the quarterly report.
There was a higher gross profit equivalent to MMUS$ 374 compared to that obtained in the same quarter of 2020 due to a higher sales volume and a higher price of US$BL 19.0 generated by the increased traffic of the population due to the gradual economic reactivation.
An additional 648 MBL were sold at a higher price equivalent to US$BL 19.0, which represented US$ 665.9 MM of higher income thanks to the increased traffic of the population due to the medical progress with respect to COVID 19.
The Company's good management, which generated MMUS$ 262 of operating income, has been affected by the constant increase in the exchange rate.
The liquidity index was equal to 0.78, representing an increase with respect to the 0.48 obtained in September of the previous year. Likewise, the acid test increased to 0.43 compared to 0.29 in the previous year.
A higher return on assets (ROA) ratio was also generated due to the increase in operating income recorded in this third quarter (MMUS$ 262.4 vs -71.8 MMUS$ as of September 2021).
Likewise, a higher return on equity (ROE) was generated, mainly explained by the lower net loss of -38.3 as of September 2021 vs. the loss of -116.6 MMUS$ as of September 2020.
EBITDA has been favorably influenced by the renewal of inventories at higher average cost and the increase in sales volume, resulting in a gross margin of 12.8% compared to 6% in September 2020.
