MercoPress. South Atlantic News Agency

Uruguayan oil company Ancap in the red

Ancap invested US$ 67 million in renewing the La Teja refinery, which accounted for part of the setback

Uruguay's State-owned oil company Ancap posted losses above US$ 130 million that grew throughout 2024 resulting in a five-year deficit for which its board of directors hold unionists responsible, in addition to a technical stoppage at the La Teja refinery that lasted longer than expected.

These figures shadow the company's performance under President Luis Lacalle Pou, after the US$ 39 million surplus from his predecessor Tabaré Vázquez's five years.

In the first half of 2024, the Ancap Group had already reported a loss of US$ 79 million, highlighting the severe impact of the refinery shutdown. During that period, Ancap stopped invoicing approximately US$ 670,000 per day due to the cessation of full operations for 297 days. Although the group's non-monopoly businesses generated a profit of US$24 million, it was not enough to offset the losses of the monopoly sector, which reached US$ 77 million.

At the end of the second quarter, Ancap reported losses worth US$ 48 million, mainly due to fuel imports to meet domestic demand. La Teja became operational again in Sept. 2023 after replacing three distillation towers and a technological upgrade to its cracking unit, at an investment of US$ 67 million to reduce long-term costs, albeit at the expense of a financial setback.

The situation could worsen if the auditor reviewing the 2024 accounts considers that the lime business has no future, given that Ancap is about to lose its contract with Candiota at the end of this year. To reactivate this sector, it will be necessary to wait for a new federal law that would allow for the renewal or negotiation of contracts.