Despite the rise in the price of crude oil, which has a negative impact on the refining business, the company took measures that allowed it to overcome the difficulties and end the period with positive results.
The National Oil Company (Enap) reached a profit of US$82.8 million the first quarter of 2022, higher by US$43.3 million compared to the same period last year.
These results are explained by the Exploration & Production (E&P) business, which performed well due to better production levels and higher international prices for crude oil and gas.
For its part, the Refining & Marketing Line (R&C) increased its production and sales levels, which made it possible to offset the strong increase in the price of crude oil and energy, as a result of the geopolitical conflict between Russia and Ukraine.
Obtaining these profits was also influenced by the correct execution of the strategic plan, which considers within its measures a correct implementation of the cost optimization plan and the incorporation of digital technology for the crude purchase and refining processesamong others.
“At ENAP we were able to overcome a complex quarter, marked by a significant increase in our production costs, both for crude oil and energy. Although we are satisfied with the performance and commitment shown by all our workers, we are concerned regarding this price escalationbecause it directly affects Chile, given that the oil consumed is 99% imported,” he explained. Julio Aranisgeneral manager of Enap.
Regarding the rise in cost of sales, the executive pointed out that during the first quarter of 2022 they presented an increase of US$1,123.7 million compared to the same period of 2021, that is, grew by 77.2%mainly due to the increase in the cost of crude oil and imported products.
Bío Bío Refinery Maintenance
As for the second quarter, Aranis indicated that it looks challenging, due to the start-up of the Bío Bío Refinery Scheduled Maintenancewhich will involve the arrest and intervention of more than 20 plants.
The process, which will be carried out in a gradual and staggered manner, will last until mid-July of this year and involves an investment of more than US$87 million in security for its operations.
“This is the largest and most necessary maintenance that Enap has carried out in its more than 70 years of life. With this, we seek to sustain a reliable and safe operation of all production units over time, applying the best practices of the refining industry worldwide, as well as improving their environmental performance. Likewise, we are supporting employment, since this process will generate, at its peak, a job opportunity for a number close to 2,000 external workers”, he stated.
The arrests of the plants in Bío Bío have been planned and coordinated well in advance, the state company remarked.
In addition, “a reinforcement task has been carried out for full compliance with sanitary protocols, guaranteeing the safety and health of those who will work in said tasks, as well as the continuity and timely supply of fuel,” Enap concluded.