Venezuela oil company PDVSA delays bond payments

By The Associated Press

 

Venezuela's state oil company reportedly is delaying $404 million in bond payments in an apparent sign that the oil giant's financial woes are worsening amid the slump in petroleum prices.

 

CARACAS, Venezuela (AP) — Venezuela's state oil company reportedly is delaying $404 million in bond payments in an apparent sign that the oil giant's financial woes are worsening amid the slump in petroleum prices.

A JPMorgan analysts' note said Monday that the oil company PDVSA is taking advantage of a grace period to delay payments on 2021, 2024 and 2035 bonds.

The terms of the bonds permit PDVSA to put off payment for 30 days before being considered in default. Analysts do not expect the company to default, but the delay highlights cash flow problems and raises the specter of non-payment.

PDVSA is the lifeblood of Venezuela's faltering economy, which is beset by high inflation and shortages of basic goods. Oil is virtually the country's only source of export revenue.

 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Latest Energy Jobs

View more Job Listings >>