By Marco Aquino

LIMA (Reuters – Peru’s state-owned oil company Petroperu, which is in trouble, will not present its annual financial audit by the end of July. This means that it will miss the May deadline.

After PwC refused to audit Petroperu’s financial statements, credit agencies downgraded Petroperu earlier this month. This was in response to a crisis in corporate governance.

Petroperu still has not found a new auditor for its 2021 financial statements. The company is looking to get bids by April 5, according to de la Torre.

“The optimistic scenario to complete the audit is for mid-July, while the conservative scenario will be for the late August, and the pessimistic scenario will be for the late September,” stated de la Torre who temporarily assumed the role of CEO on Tuesday.

Petroperu bonds are now in decline since February 28, when it was announced that PwC declined to conduct the audit, citing that auditors could run into risks.

Petroperu has to file an audit of the bonds by May or risk triggering a technical default. De la Torre claimed he offered Deutsche Bank (DE) A contract to win Petroperu bondholders and waive the audit requirement.

Petroperu issued bonds totaling $3 billion. This includes a $1 billion issue to complete the construction of a northern Peru refinery. The company also holds a $1.3 billion outstanding loan from the Spanish Export Credit Agency.

Petroperu, under the left-wing presidency of President Pedro Castillo has resumed oil production, though at a minimal level, for the first times in many decades.

Castillo has been under increasing pressure to cut fuel prices. These have increased since Russia invaded Ukraine. Peru imports the bulk of its fuel.

Hugo Chavez was Petroperu’s prior CEO. He resigned after accusations that he improperly hired an organization to provide his personal security. His replacement was de la Torre who served as the chief financial officer.

De la Torre stated that his company’s next priority would be to regain its investment grade. This was due in part to the PwC tensions. It has also come under fire for its high turnover of executives.

De la Torre stated, “What was going round financial circles was that people were saying audit firms didn’t feel comfortable enough to inspect Petroperu when Chavez was in control.”

“Since that has now been changed… we wish that sentiment has too.”

Petroperu in crisis https://tmsnrt.rs/3NdSZIE

Petroperu in crisis (Interactive graphic) https://tmsnrt.rs/3Jy82uC

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