April 28, 2015

Oil & Energy

 

PDVSA reports 9.67% debt increase

According to its official yearly report for 31 December 2014, PDVSA must disburse US$ 5.373 billion in 2016 and US$ 7.325 billion in 2017 to service capital and interests on its debt, which is a 9.67% increase over the previous year. Analysts estimate around US$ 6 billion have been paid out this year, but the figure is not in the report. More in Spanish: (El Universal: http://www.eluniversal.com/economia/150427/pdvsa-reporta-aumento-de-967-de-su-deuda-financiera)

 

Venezuela may have missed US$ 24 billion in oil revenue in 2014

Venezuela, struggling to pay for essential items such as food and medicine amid strict foreign currency controls, may have failed to collect about a third of its potential oil revenue in 2014, a Reuters analysis suggests. The nation likely realized just over US$ 50 billion in oil revenue in 2014, according to an analysis of publicly available data and estimates based upon past performances of Venezuela's oil sector.  But as a result of generous financing mechanisms to allied nations through cooperation agreements and imports of crude oil and various products, Venezuela potentially deprived itself of about US$ 24 billion in oil revenue last year, the analysis suggests. (Reuters, http://www.reuters.com/article/2015/04/27/us-venezuela-oil-revenue-analysis-idUSKBN0NI1BM20150427; El Universal, http://www.eluniversal.com/economia/150427/pdvsas-revenue-production-and-exports-fall)

 

Venezuela’s export barrel averaged US$ 52.61/bbl. the week of April 20 through April 24, up US$ 2.27/bbl., according to the Oil and Mining Ministry. The average-to-date this year is US$ 45.95/bbl. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43659&idc=4; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385039&CategoryId=10717)

 

 

Commodities

 

COLGATE PALMOLIVE reportedly halts its soap production

Workers at the COLGATE PALMOLIVE plant in Carabobo state report the plant has been paralyzed because supplies ran out. "We were putting out over 2,500 soap boxes in each shift, we were breaking records", says Félix Bello, the union's secretary general, who fears over 150 workers will become unemployed. More in Spanish: (Globovision, http://globovision.com/colgate-palmolive-paraliza-produccion-de-jabon-en-carabobo/)

 

 

Economy & Finance

 

U.S. Companies are hurting from Venezuela's hyperinflation

Every time Venezuela introduces a new, weaker currency exchange rate, some of the world's largest companies face the decision of whether or not to adopt it. If they eventually do switch to the less favorable rate, it can result in multimillion-dollar charges that drag down balance sheets and earnings statements. At least 46 S&P 500 companies, about 10% of the total index, have told investors about potential exposure to Venezuela's currency in the past year, according to a search of company filings compiled by Bloomberg. (Bloomberg, http://www.bloomberg.com/news/articles/2015-04-24/these-u-s-companies-are-hurting-from-venezuela-s-hyperinflation)

 

Accrued inflation in the food sector could reach three digits to 103.6%, says CAVIDEA’s CEO Juvenal Arveláez. He said it was not official information because the Central Bank (BCV) has not provided figures “but this is what is being estimated.” (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43653&idc=2)

 

 

Politics and International Affairs

 

A total of 865 people have been charged for bilking the nation for a total of US$ 8 million, through the use of foreign currency authorizations to purchase items and travels with credit cards abroad, says Prosecutor General Luisa Ortega. She did not mention those who cheated the nation for over US$ 25 billion, via CADIVI and the CENCOEX. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43654&idc=2; El Universal, http://www.eluniversal.com/economia/150427/856-people-accused-of-forex-fraud-in-venezuela)

 

Caracas mayor jailed over alleged coup plot released for surgery

The mayor of Caracas, who was arrested on suspicion of plotting a coup against the government, has been put under house arrest for health reasons. The public prosecutor’s office announced that Antonio Ledezma would be allowed to undergo surgery for a hernia and recuperate. He is reported in strong condition following the operation. (The Guardian, http://www.theguardian.com/world/2015/apr/25/caracas-mayor-antonio-ledezma-jailed-alleged-coup-plot-house-arrest-surgery; Reuters, http://www.reuters.com/article/2015/04/25/us-venezuela-opposition-idUSKBN0NG0XG20150425; http://www.reuters.com/article/2015/04/25/us-venezuela-opposition-idUSKBN0NG00X20150425; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43656&idc=1; El Universal, http://www.eluniversal.com/nacional-y-politica/150427/mayor-antonio-ledezma-hospitalized-after-successful-operation)

 

Ambassador to return to Venezuela in “next few hours,” says Spanish FM

Spanish Foreign Minister Jose Manuel Garcia-Margallo has acknowledged the diplomatic gestures by President Nicolas Maduro toward Prime Minister Mariano Rajoy and said Spanish Ambassador Antonio Perez Hernandez would return to Caracas “in the next few hours.” Maduro asked Rajoy to shake hands at the next EU-Latin America Summit to prevent “the spears” from being brandished. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385097&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150427/spain-ambassador-perez-to-return-to-caracas-in-the-upcoming-hours)

 

Opposition prisoner Leopoldo Lopez now in solitary, wife says

Opposition leader Leopoldo Lopez is being punished by not being allowed to receive visits for the next three weeks, says his wife Liliana Tintori. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385053&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150427/lilian-tintori-leopoldo-lopez-was-proposed-to-leave-venezuela)

 

Prosecutor rules Spanish ex-PM off opposition leader’s court case

Prosecutor General Luisa Ortega Diaz says former Spanish Prime Minister Felipe Gonzalez cannot be a part of the defense team for jailed opposition politicians Leopoldo Lopez and Antonio Ledezma. “It’s not possible for outsiders to come as technical advisers for a detainee’s defense. It’s not possible because it does not conform to the legal system,” says Ortega. Her warning contradicts the opinions of Lopez’s legal team and of Gonzalez himself who said Venezuela’s legal system permits him to act as advisor. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2385170&CategoryId=10717)

 

Colombia Immigration confirmed Venezuela has deported 2,039 Colombian citizens so far this year, for different reasons. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43655&idc=1)

 

Woman who hit Maduro with mango rewarded with house

A woman who hit President Nicolás Maduro on the head with a mango has been promised a new house for her troubles in a surreal tropical tale that has gone viral in Venezuela. The president was driving a bus through a crowd in the central state of Aragua last weekend when the fruit was thrown at him. “It says: ‘If you can, call me,’” said Maduro, as he displayed the fruit on television “Marleny Olivo had a problem with her house. [Officials] called her. She was scared. She couldn’t believe it was true … I’ve approved an apartment for you, Marleny, as part of the Grand Venezuelan Housing Mission.” He also promised that he would eat the mango. In a habit that delights many poor supporters but irritates critics, Maduro – like Chávez – often personally gives away homes, appliances or pensions to low-income Venezuelans. (The Guardian, http://www.theguardian.com/world/2015/apr/25/venezuela-woman-president-mango-house)

 

 

The following brief is a synthesis of the news as reported by a variety of media sources. As such, the views and opinions expressed do not necessarily reflect those of Duarte Vivas & Asociados and The Selinger Group.