Venezuela’s PDVSA Sees Lower Debt in 2017
Venezuelan state oil firm PDVSA revealed Friday it managed to reduce its debt obligations last year.
Puebla, Mexico, January 20, 2017 (venezuelanalysis.com) – Venezuelan state oil firm PDVSA revealed Friday it managed to reduce its debt obligations last year.
The company saw its consolidated financial debt reduced by 6 percent in 2016 compared to the previous year, according to a newly released financial report from the firm.
The report indicated the drop in debt obligations was in part due to a US$1.7 billion reduction in outstanding bonds. In 2016, PDVSA secured a deal with bondholders, postponig US $2.8 billion in payments that were set to fall this year. Instead, those payments will be put off until 2020.
PDVSA’s manoeuvre to delay bond payments was also combined with an additional US$1.6 billion reduction in outstanding loan obligations.
The data comes after months of speculation over the financial stability of PDVSA. The company is the largest single source of revenue for the Venezuelan government, but has faced controversy in recent years over claims productivity has declined.
Earlier this month, Reuters reported it had obtained an internal PDVSA document showing the company expects output to remain at a two decade low, after slumping 10 percent in 2016.