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Tue, 17 Dec 2019 16:48 - Updated Tue, 17 Dec 2019 16:48

Sonangol chief stresses company financial strength

Luanda - With a registered capital of over US $ 12 billion, Sonangol is strong enough to continue its business, maintaining the trust and credibility of its partners (investors and banks).

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PCA da Sonangol, Sebastião Gaspar Martins - Arquivo

Photo: Francisco Miúdo

Sonangol building

Photo: Pedro Parente

The statement is made by the chairman of the Board of Directors of Angolan oil company Sebastião Gaspar Martins, ruling out the possibility of a possible technical bankruptcy of Sonangol.

"The economic and financial condition of the company remains viable and we are confident that we will continue to have positive results in 2019 and beyond," he said.

In an interview with Jornal de Angola, published in this Monday's edition (16), the manager also assured that Sonangol has financial agreements that allow it to go to the international market in search of financing with confident and credible full coverage.

He said that from 2020 the company will go to the market and guarantee funding of about US $ 1.5 billion.

He clarified that going to the financial market is an operation that the company conducts annually and always with the aim of meeting the needs of oil operations, partly to meet needs in the upstream segment (exploration, development and production).

As for production, in terms of participatory interests, he said that Sonangol produces about 235,000 barrels of oil per day and by increasing its role in operating activity it intends to make the company a "player" like any of the companies operating in Angola.

"Right now, with the exception of blocks 15 and 17, we are in almost all concessions that have production and we will also be in blocks that have exploration," he said.

Rising fuel prices

For Sebastião Martins, the increase in fuel prices is a necessity, because Sonangol is importing refined products with costs above the revenues obtained from the sale in the national market.

This means, he explained, that Angola currently buys refined products at the international market price, but sells at a rate equivalent to an exchange rate of 155 kwanzas per dollar, a price set in the latest revision and no longer in line with current reality.  

Currently, the exchange rate is around 475 kwanzas per dollar, a difference of three to four times between the price that one buys abroad and the value one sells locally.

"We sell at 30 cents, when prices on the international market are between $ 1.20 and $ 1.30," he said.

He stressed that Sonangol, as a state partner with social responsibility, has been working with the Ministerial Departments of Finance and Mineral Resources and Oil to find the best time and price balance that can safeguard the company's interests and of the state as a whole.

 "Concentration is still needed, so that the impact of this increase is also not drastically reflected in the purchasing power of the population," he stressed.

Tags Petróleos  

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