MercoPress. South Atlantic News Agency
“New” YPF first shareholders’ meeting turns dividends into investment fund
Argentina’s seized oil and gas corporation YPF drastically cut dividend payments and created an investment fund following the first shareholders meeting since the nationalization by President Cristina Fernandez. Read full article
Comments
Disclaimer & comment rulesPreparing a tour of the US to seek investment???
Jul 18th, 2012 - 08:43 am - Link - Report abuse 0Does this guy like being laughed at?
If the investment by Repsol wasn't a good enough deal for YPF then why on earth would a US company want to accept a worse deal with all the added country risk involved?
Argentina doesn't seem to understand that people invest for profit - not to further the agenda of the national government.
Most nations try to attract investment but South American nations have the attitude that they are doing the investors a favour. Money goes where it receives the best returns. Not a difficult concept.
An excellent decision =)
Jul 18th, 2012 - 10:09 am - Link - Report abuse 0BK you're a idiot or you just like to fuck with people.
Jul 18th, 2012 - 10:30 am - Link - Report abuse 0@1
Jul 18th, 2012 - 12:28 pm - Link - Report abuse 0They have already tryed getting investoment out of America earlier this year. It failed no US company is intrested in Investing in an environment where there will be no shareholder profits or divindens. CFK believes foreign compnaiues should invest because they are kind people not becuase they run buisness.
“Chief Executive Officer Miguel Galuccio allocated 1.3 billion dollars of earnings toward total planned investment in 2012 of 3.5 billion”. From this we can see that YPF needs to raise 2.2 billion dollers of foreign investment just to meet this years target let alone the next 2/3/5 years. This compnay will go the same way as Aerolinius and be run at a loss year on year. The only people vaguley intrested in investing will be China (and I doubt it as they didnt say anything on hydrocarbon investment during the visit this year) and they will extract a very very cost of this.
YPF is doomed, what CFK cannot see is that privitisating a compnay when you do not have the capital required to invest in that compnay is a policy doomed to fail. not that she thought about that at the time as this was a decision taken to create a short term popularist rise in support not a long term decision made to produce a more stable nation.
The YPF directors will EACH receive 5,000,000/mo as salary. Seem fair to me.
Jul 18th, 2012 - 01:05 pm - Link - Report abuse 0I wonder how long they can run YPF before total collapse? A year, two?
Does anyone think CFK will actually last until then?
I think any potential investor will look at the fact that Repsol hasn't been compensated for the forced takeover of YPF. When is this going to get sorted out????
Jul 18th, 2012 - 01:06 pm - Link - Report abuse 0Remember China's answer to Kretina over investment in YPF was “Raise the value of the barrel at the well head to international rates and we'll put up the money you need to develop Vaca Muerta.” Kretina said “no.”
Jul 18th, 2012 - 03:01 pm - Link - Report abuse 0What the Chinese didn't say is that their investment would buy up ALL the production of Vaca Muerta!!!!!
Argentina will be the new China.
Jul 18th, 2012 - 03:39 pm - Link - Report abuse 0Bicycles for everyone.
@3
Jul 18th, 2012 - 04:01 pm - Link - Report abuse 0The answer to your question is: both.
Where there is oil, investment will follow, even in Argentina.
The stupid thing is that Repsol's investment plan for Vaca Muerta was US$3.5 billion, just what Galuccio is trying to put his hands on, it would have been better to steal the company after it made the investment!!!
Jul 18th, 2012 - 05:00 pm - Link - Report abuse 0I think Condorito is right, Galuccio will fund the investors, but only if Kretina frees up the well head price of the crude.
The shareholders assembly coincides with the launching by the Argentine government of an aggressive campaign to attract foreign investors and help the company develop its full potential.
Jul 18th, 2012 - 05:25 pm - Link - Report abuse 0CEO Galuccio is preparing a tour of the US in search of investors in Houston and New York with promises YPF is rapidly recovering the levels of production it had a few years ago and lost during the management of Spain’s Repsol.
This has allready been tried twice this year! and coming on the back of a 5% payout (thats gonna tempt investors!)
Anyone know when the 100 days is up so we can hear how Miguel Galuccio the ceo is going to turn the company around?
The company cant be turned around without investment. Normaly in these situations the government would provide the capital required but the Argentine government does not have that sort of capital. The problem with Peronist governemnts is they have a problem with private compnaies making a profit and believe that they should reinvest their returns into the country because they are nice people. People are not in buisness to be nice people they are in buisness to make money and return profits to their share holders. The CFK administration is destryoing andthing of value worth investing in in Argentina. YPF will go the same way as Aerolinious,AySA, which has suffered from increasingly growing losses each year since privitasation. http://www.economist.com/node/21554569
Jul 18th, 2012 - 05:41 pm - Link - Report abuse 0The only way the government can gain this investment will be to increase prices (something it did not allow YPF to do under Repsol) this will harm many Argentines both in fuel for cars as well as heating.
Energy prices on the verge of soaring which will of course increase inflation and lead to an economic collapse which could of been prevented by a sensible and responsible goverment.
Lots and lots of expensive technology needed to harvest the oil there, lots and lots of unhappy Oil giants telling the expensive technology companies that if they even think about supplying what is essentially a small feed outfit (YPF) then they are some way down the bidders list next time round. Sending out the right signals to all the other hydrocarbon dependent countries that are thinking about double dealing.
Jul 19th, 2012 - 07:08 am - Link - Report abuse 0Commenting for this story is now closed.
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