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ECONOMY | 23-02-2022 17:34

Vista: Argentina FX rules won’t change soon even with IMF deal

Vista CEO Miguel Galuccio does not expect a drastic change to Argentina's exchange rate rules in the short term.

Vista CEO Miguel Galuccio, asked about how an agreement with the International Monetary Fund would affect access to hard currency in Argentina, says does not expect a drastic change to Argentina's exchange rate rules in the short term.

Galuccio, speaking during a call with investors on Q4 2021 results, said the relaxation of exchange rate rules will depend on how the economy progresses after an agreement and whether foreign currency shortages persist.

Vista is "pushing and talking" for an easing of foreign exchange restrictions for oil investors, Galuccio said after a question about the possibility of some export earnings being retained in dollars.

The CEO argued that this should be an obvious solution that would generate profits for both the country and the industry. He added that he does not think a law is needed, but that he hopes there will be some kind of scheme or programme.

If integrated national refiners like YPF intervene in export markets, cornering production to depress/subsidise local fuel prices, they would be "shooting themselves in the foot," although he admitted it could happen.

Extraction costs this year may fall to US$6.50 a barrel, 13 percent less than the benchmark, as upgrades are made to the new Federal Waterfront assets.

Pipeline operator Oldelval's plans to increase capacity to 265,000 bpd and then to 375,000 bpd from the current 225,000 bpd are welcome to avoid future transportation bottlenecks.

According to the 2022 Roadmap published by Vista, it targets production of 46,00 to 47,000 boed, up 20 percent year-on-year, and adjusted ebitda (Earnings before interest, taxes, depreciation and amortisation) of US$550-575 million, equivalent to a 48 percent year-on-year increase.

It also calls for capital expenditure of US$375-400 million, up 20 percent year-on-year.

Galuccio noted that these guidance guidelines depend on export levels and prices. "We are coming into Q1 better than planned," he added.

 

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by Jonathan Gilbert, Bloomberg

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