Directors of Sonangol says bankruptcy scenario is “virtually … – Jornal de Negócios – Portugal

Administration of Sonangol says bankruptcy scenario is “virtually impossible”

The chairman of Sonangol refusal that the oil is in “technical bankruptcy”, ” bankruptcy “or” crisis “. In a press conference, said that the company maintains investments for this year, but admitted that the fall in oil prices entails the implementation of a cost reduction program.

The chairman of the Angolan Sonangol, Francisco de Lemos José Maria, denied on Monday the failure of the state oil company, as news of recent weeks, something that claims to be “virtually impossible to happen.”

The official was speaking at a press conference in Luanda, refusing several times terms such as “technically bankrupt”, “bankruptcy” and “crisis” in the National Fuel Society of Angola (Sonangol), transmitted by “Articles opinion “and news in recent weeks.

” Any state of bankruptcy or bankruptcy would have to imply that, in one year, Sonangol registasse loss of 22 billion dollars, which is virtually impossible to happen. In one year, even in four or five years, “said Francisco de Lemos José Maria, at a press conference that lasted for more than an hour.

He added, to justify the” stability “and” operational robustness “of the company, Sonangol has a general level of current indebtedness 13,786 million (EUR 12.3 billion), against a superior assets to 21,988 million dollars (19,700 million euros), giving leverage “sufficiently stable” and more than 63%.

The official also assured that Sonangol holds the investment program for this year, valued at 6,700 million dollars (6,000 million ), in all segments, of which 58% in exploration and production of crude oil, 15% in refining crude oil and 10% in distribution and logistics fuel.

In addition, Sonangol noted the December 31, 2014 an operating profit (EBITDA) higher than 1,650 million dollars (1.4 billion euros) to its net debt, revealing “the operational sustainability of debt and sufficient liquidity preservation for short-term adversity” such as low international crude oil price.

“After six months of activity, Sonangol has not made use of external credit, even with an oil price [barrel of crude] quite inferior to that which existed in Last year, “he emphasized Francisco de Lemos José Maria, a message that said several times, aimed at transmitting” confidence “to workers – is the largest business group in Angola -, customers and creditors

Production. Oil in Angola increased 12% in the first half of this year, equivalent to about 100,000 barrels of crude a day (just over 1.7 million barrels per day) over the same period 2014.

However, he admitted, the fall in international prices of crude oil requires the implementation of a cost reduction program, without cutting back on jobs, and “on the contrary”, is expected to generate savings of USD one billion already this year, particularly in hiring and external consultants, through a “protracted negotiations” with suppliers.

He said that the statements of financial years of the company, following the news published in recent weeks about the “hypothetical bankruptcy” were explained to 3 July at a meeting between the management of Sonangol and representatives of 22 commercial banks operating in Angola, pondering forward in legal terms against the publication of this news.

“Sonangol, to the size which has, needs to permanently have the flexibility to adjust its operating model to continue to sell, to continue to produce and continue to create income, “stressed Francisco de Lemos, alluding to references to the failure of international operating model of the company in same news, which then cited internal documents on the future of state company.