MONTEVIDEO – State petroleum company Ancap must be “rethought and restructured,” and its relationship with the overall market needs to be reviewed, Uruguayan Industry, Energy and Mining Minister Carolina Cosse said on Thursday.
Ancap, a maker of petroleum products, Portland cement and alcoholic beverages and one of Uruguay’s leading companies, ended 2014 with a net loss of $323 million.
In 2013, the company, which has a local monopoly on oil and gas refining and distribution, posted a net loss of $170 million.
Cosse and Ancap’s board will appear before the Uruguayan lower house’s industry committee on July 1 to explain the company’s financial woes.
Ancap is a “very important company with great prospects” that must “work as a team” with her portfolio and the Economy and Finance Ministry to solve its problems, Cosse told reporters, adding that “there is no magic” solution.
Ancap’s board has blamed the company’s widening net loss on factors such as fluctuations in the value of the Uruguayan peso relative to the dollar and investment spending during the 2010 to 2014 period.