MercoPress. South Atlantic News Agency

Uruguay's Ancap posts US$ 48 million losses in three months

Foto: Mauricio Zina / adhocFOTOS

Uruguay's state-owned oil company Ancap reported this week losses worth US$ 48 million in the last three months after needing to import fuel to meet local demand following the shutdown of the La Teja refinery for maintenance work starting Sept. 4, 2023.

Ancap explained in a statement that the deficit was the result of paying above those estimated by the Energy and Water Services Regulatory Unit (URSEA) and setting retail prices favoring consumers at the request of the Executive Branch.

The work at the La Teja involves the replacement of three distillation towers, each about 30 meters high and weighing between 20 and 23 tons, the replacement of the furnace air preheater, the installation of 17 new pumps of up to 250 horsepower, the reconstruction of the incinerator chimney and a technological update of the cracker, which is the unit providing the greatest profit to the refinery. Of the US$ 79 million costing the refutbishing, US$ 67 million alone went to the cracking unit.

Between January and March, the businesses of the Ancap Group's collateral companies, such as Distribuidora Uruguaya de Combustibles (Ducsa), made a profit of US$ 9 million, which was not enough to revert the losses due to fuel imports, Ancap President Alejandro Stipanicic explained.