MercoPress. South Atlantic News Agency

Venezuela’s oil corporation profits plummet because of “•global capitalist crisis”

Energy and Petroleum Minister Rafael Ramirez

State-owned Petroleos de Venezuela SA earnings reached 4.49 billion US dollars in 2009, down from 9.41 billion in 2008, Energy and Petroleum Minister Rafael Ramirez revealed this week. Speaking at PDVSA headquarters in Caracas, he cited the “global capitalist crisis” as a major factor in the sharp fall in net income.

PDVSA average monthly sales fell from 2.15 billion in 2008 to 1.5 billion last year as exports declined to 2.68 million barrels a day, Ramirez, who is also PDVSA president, told reporters.

“However, we act and manage keeping very much in mind that our main commitment is capturing all possible income for its distribution among our people” the minister said, stressing PDVSA role in funding populist Venezuela’s extensive social programs. The company provided 27.79 billion US dollars to the Venezuelan treasury in 2009.

“We operate in an environment characterized by mercantilist visions, but the balance sheet we present today shows the strength of our company and the strength of our financial situation despite 2009 being a very difficult year,” Ramirez said.

The report said PDVSA added 39 billion barrels to proven reserves in 2009, bringing total reserves to 211.17 billion barrels. The balance sheet also mentioned the incorporation of 9,812 new employees following on President Hugo Chavez decision to take over the operations of several private firms related to the oil business.

Venezuela is the world’s fifth oil exporter and a key supplier of crude to the United States.