/raid1/www/Hosts/bankrupt/TCRLA_Public/250214.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, February 14, 2025, Vol. 26, No. 33
Headlines
A R G E N T I N A
ARGENTINA: IMF Says 'Constructive Discussions' Ongoing Over Deal
B O L I V I A
BCP BOLIVIA: Fitch Affirms 'B-' LongTerm IDRs, Outlook Negative
B R A Z I L
RONTAN ELETRO: Chapter 15 Case Summary
C O L O M B I A
COLOMBIA: IDB OKs Loan in Advancing Integration Into Value Chains
M E X I C O
ACCURIDE CORP: Judge Poised to Approve Lender Takeover Plan
CREDITO REAL SAB: Chapter 15 Case Summary
T R I N I D A D A N D T O B A G O
CARIBBEAN AIRLINES: Operating Profit Declines 51% in 2024
V E N E Z U E L A
VENEZUELA: Needs T&T Private-Sector Investment
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A R G E N T I N A
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ARGENTINA: IMF Says 'Constructive Discussions' Ongoing Over Deal
----------------------------------------------------------------
The International Monetary Fund's top spokeswoman said that the
staff are holding "constructive discussions" with Argentina over a
new financing agreement, adding that further talks are needed
before a deal is finalized.
Speaking at a press conference in Washington DC, IMF Spokesperson
Julie Kozack said "constructive discussions" are ongoing with
President Javier Milei's government over a fresh accord, though she
remained tight-lipped over when an agreement would be reached.
Kozack instead praised 'the enormous progress made by Argentina in
reducing inflation, stabilising the economy, returning to growth
and reducing poverty."
The comments come after a week of rumours in Buenos Aires that a
new deal is imminent.
Brushing aside questions from reporters, Kozack recognised the
"need for continued fiscal, monetary and exchange rate policies,"
as well as more structural reforms to improve growth.
"I know you have a lot of interest, and there were many detailed
questions here, but given that discussions are continuing and there
has been good progress so far, we want to make sure that there is
room for staff and the authorities to continue these constructive
discussions," she responded.
The aim of the new programme, Kozack said, will be to "build on the
achievements so far, while addressing the remaining challenges."
Argentina's government is negotiating a new agreement with the IMF
to replace its existing US$44.5-billion credit-line, granted in
2018 under former president Mauricio Macri's administration.
It is also seeking an additional US$11 billion in fresh funding,
which Milei says would allow the nation to eradicate the so-called
'cepo,' strict currency controls that limit access to foreign
currency. Earlier, he set a 2026 deadline for their removal,
adding that new cash from the IMF could speed up the process.
Economy Minister Luis Caputo said that a new IMF agreement would
not imply a devaluation of the peso or an immediate exit from
capital controls.
A timeframe for a new IMF programme has not yet been set, though
earlier this year Fund technicians approved a recent assessment of
Argentina's current programme, offering a favourable evaluation of
recent economic measures.
Since taking office last December, Milei has reduced inflation from
211.4 percent in 2023 to 117.8 percent last year. He also recorded
Argentina's first fiscal surplus in more than a decade.
The flipside was the consolidation of a deep recession and an
11-point jump in the poverty index in the first half of 2024, with
52.9 percent of the population considered poor. The release of
updated data is scheduled for March, though there are indications
the situation improved in the second half of last year.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
In March 2022, the International Monetary Fund (IMF) approved a new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CC',
and its Long-Term Local-Currency IDR to 'CCC' from 'CCC-'.
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B O L I V I A
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BCP BOLIVIA: Fitch Affirms 'B-' LongTerm IDRs, Outlook Negative
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Fitch Ratings has affirmed Banco de Credito de Bolivia S.A.'s (BCP
Bolivia) Long-Term (LT) Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'B-'. The Rating Outlook on the LT IDRs remains
Negative. At the same time, Fitch has affirmed BCP Bolivia's
Short-Term Foreign and Local Currency IDRs and Shareholder Support
Rating (SSR) at 'B' and 'b-', respectively. Fitch has also affirmed
BCP Bolivia's Viability Rating (VR) at 'ccc'.
BCP Bolivia's Local and Foreign Currency IDRs were affirmed above
the sovereign rating as they benefit from the support the bank
would receive from its higher-rated parent. However, the IDRs are
currently capped by the country ceiling and also receive the
maximum three-notch uplift above the sovereign rating according to
Fitch's bank rating criteria. The Negative Outlook on BCP Bolivia's
IDRs reflects the risks associated with any additional sovereign
downgrade.
Fitch's has revised its assessment of Bolivia's banking system
operating environment (OE) score to 'ccc-' from 'ccc' with negative
outlook, reflecting the recent downgrade of Bolivia's Long-Term
Foreign Currency IDR to 'CCC-' from 'CCC'. This considers the
liquidity risks associated with the persistent decline in usable
international reserves to very low levels, and heightening risks to
macroeconomic stability and the banks' intrinsic strength. For
additional details see "Fitch Downgrades Bolivia to 'CCC-'," dated
Jan. 24, 2024,.
Key Rating Drivers
IDRs' Supported from Parent: BCP Bolivia's IDRs and SSR reflect the
expected support the bank would receive from its parent, Credicorp
Ltd. (BBB/Stable), if required. Fitch views BCP Bolivia as a
strategically important subsidiary for Credicorp because it is an
integral part of the group and contributes to the parent's
geographical diversification.
However, BCP Bolivia's Foreign Currency IDR is capped by Bolivia's
Country Ceiling of 'B-', which captures transfer and convertibility
risks and constrains Fitch's assessment of the ability of the
shareholder to support its subsidiary. Fitch believes that the
owner's commitment to its subsidiary is likely to survive a
sovereign default and government restrictions are unlikely to be
imposed, which would prevent the bank from servicing its
obligations.
VR Affirmed Above the Sovereign Rating: BCP Bolivia's VR is being
affirmed at 'ccc', one notch above the sovereign rating and the
revised OE. The affirmation of the VR, which is now above the OE
score, reflects its view that the bank's liquidity profile is
stronger than what might be expected from a reasonably
well-performing bank exposed to the OE, considering that it has
normally paid its FC obligations despite the dollar scarcity in
Bolivia.
According to Fitch's criteria, a bank may be assigned a VR above
the sovereign when the latter is rated in the 'CCC' category or
below. The bank's VR is highly influenced by Bolivia's sovereign
rating as well as by a challenging and deteriorated OE within a
highly regulated and interventionist framework.
Good Franchise: Fitch's assessment of BCP Bolivia's business
profile score is 'b-' based on the bank's four-year average total
operating income of $124 million, commensurate with the implied 'b
or below' score. Fitch's assessment of BCP Bolivia's business
profile balances the bank's well-established local franchise and
the benefits of being 100% owned by Credicorp Ltd., the largest
financial group in Peru, as well as a business model concentrated
in a higher-risk market.
As of 3Q24, BCP Bolivia was the fifth-largest bank in its market in
terms of total loans and deposits, with market shares of 8.1% and
8.4%, respectively. BCP Bolivia reaps significant benefits from its
shareholder's reputation, synergies, technological developments and
strategies. Historically, the bank's branch expansion in the
country has not been aggressive.
Asset Quality Stabilized: BCP Bolivia's asset quality score was
affirmed at 'ccc', commensurate with the implied 'b or below'
score. The impaired loan ratio was 2.8% as of 3Q24, similar to the
past two years (2023-2022: 2.6%).
Fitch expects the asset-quality metric to continue to perform in
line with the implied score, and for the bank to maintain its loss
absorption capacity, supporting the revision of the outlook to
stable for the asset quality score. The impaired loan ratio level
in recent years is driven by the worsened macroeconomic conditions
and modest growth in the loan portfolio of 4.8%. The loan loss
allowance/impaired loan ratio remained at 100% over the same
period.
Adequate Profitability: BCP Bolivia's earnings and profitability
score was affirmed at 'b-', commensurate with the implied score of
'b or below'. Despite a pressured OE, the bank's operating
profit-to-risk-weighted assets (RWA) ratio slightly increased to
1.03% at 3Q24 from an average of 0.95% during 2020-2023. Net
interest margins (NIMs) increased as of 3Q24 on the back of
moderate loan growth and higher average yields.
Although Fitch expects some additional profitability pressures due
to interest rate ceilings on loans placed in productive sectors and
loan impairments, the outlook of the score was revised to stable
given the metric will be commensurate with the implied current
score in the rating horizon. While higher financial expenses
related to lower liquidity in the system may pressure net margins,
the core metric will remain within the implied score.
Improving but Still Limited Capitalization Levels: The bank
capitalization score was affirmed at 'ccc+', in line with the
implied score of 'b or below'. Capitalization ratios improved in
3Q24 mainly due to higher retained earnings but still remained
somewhat low.
The Fitch Core Capital (FCC) ratio improved by 62 bps to 10.4% from
9.75% in 2023. BCP Bolivia's core capitalization is higher than
that of local peers and the Bolivian banking system. The regulatory
capital ratio of 12.3% is above the FCC ratio due to subordinated
bond issuances. However, these tier 2 bonds are not considered
loss-absorbing capital under Fitch's criteria. Fitch believes that
the current capital metrics and loss-absorption capacity will be
tested under a more pressured OE that could negative impact asset
quality and profitability.
Funding Concentration and Access to FX Liquidity Uncertain: Fitch's
assessment of the bank's funding and liquidity profile was affirmed
at 'ccc', in line with the implied score of 'b or below', and
considers its good liquidity cushions. However, it is constrained
by the poor foreign-currency availability in the local market and
depositor concentrations.
Although funding concentration is a systemic issue, Fitch believes
the bank's funding concentration is one of its weaknesses. However,
this is partially offset by the bank's solid liquidity, reflected
in its loan to deposit ratio of 94.1%, and liquidity coverage ratio
well above 100%. In addition, liquidity risks may arise from
reduced cash flows from the ongoing liquidity restriction on
foreign and local currency.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- The IDRs and SSR would be downgraded if Fitch perceives a
material weakening of the parent's ability or willingness to
support the bank;
- The IDRs are sensitive to changes in the country ceiling, as
banks' Foreign Currency IDRs are almost always capped at the
Country Ceiling;
- The VR is sensitive to changes in the sovereign rating or further
deterioration in the local operating environment;
- BCP Bolivia's VR could be negatively affected if the bank's
operating profit-to-RWAs ratio were consistently negative or its
FCC ratio were to fall below 7%;
- A significant deterioration of the bank's access to funding or
sustained pressure on its liquidity profile would also be negative
for its creditworthiness.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Rating actions on the bank's IDRs and SSR are sensitive of those
of the sovereign and Country Ceiling;
- BCP Bolivia's VR upside potential is limited given the
sovereign's current rating and negative OE. Over the medium term,
ratings could be upgraded due to an improvement in OE and if the
bank sustains a stable business and financial profile.
VR ADJUSTMENTS
- The Viability Rating has been assigned below the implied score
due to the following adjustment reason: Operating
Environment/Sovereign Rating Constraint (negative).
- The Operating Environment score has been assigned below the
implied score due to the following adjustment reasons:
Macroeconomic Stability (negative) and Sovereign Rating
(negative).
Summary of Financial Adjustments
Fitch revised its intangible asset calculation to factor in some
accounts that were classified as other assets and other accounts
receivable under Bolivian GAAP. The bank cannot rely on these
assets in case of a liquidation process to pay for financial
obligations. Therefore, Fitch classified prepaid and deferred
expenses as intangibles and deducted these from the Fitch Core
Capital calculation.
Public Ratings with Credit Linkage to other ratings
BCP Bolivia's IDRs are support-driven from its ultimate parent,
Credicorp Ltd.
ESG Considerations
BCP Bolivia's Environmental, Social and Corporate Governance (ESG)
Relevance Score for Management Strategy of '4' reflects a track
record of high government intervention in the Bolivian banking
sector. Government intervention in the country's banking regulatory
framework challenges BCP Bolivia's ability to define and execute
its own strategy. This has a negative impact on the rating.
BCP Bolivia's ESG Relevance Score for Governance Structure is '3',
aligned with the standard scoring for all banks globally.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Banco de Credito
de Bolivia S.A. LT IDR B- Affirmed B-
ST IDR B Affirmed B
LC LT IDR B- Affirmed B-
LC ST IDR B Affirmed B
Viability ccc Affirmed ccc
Shareholder Support b- Affirmed b-
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B R A Z I L
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RONTAN ELETRO: Chapter 15 Case Summary
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Two affiliates that simultaneously filed voluntary petitions for
relief under Chapter 15 of the Bankruptcy Code under case number
25-11421:
Debtor
------
Rontan Eletro Metalurgica Ltda.
Rodovia Antonio Romano Schincariol,
s/n, SP127 Km 114,5
Tatui, Sao Paulo, SP CEP 18278-725
Brazil
Rontan Telecom Comercio De Telecomunicacoes Ltda.
Rua Tripole, 64,
Vila Leopoldina, Sao Paulo, SP CEP 05303-020
Brazil
Business Description: Rontan Eletro Metalurgica Ltda., established
in 1970, is a Brazilian company specializing
in the manufacture and supply of safety
equipment, signaling systems, and vehicle
adaptations for small and medium-sized
businesses. Their product includes
acoustic and visual signaling devices, as
well as truck bodies.
Rontan Telecom Comercio de Telecomunicacoes
Ltda., is primarily engaged in the wholesale
trade of electronic components.
Additionally, Rontan Telecom offers repair
services for cell phones and accessories.
Chapter 15 Petition Date: February 11, 2025
Court: United States Bankruptcy Court
Southern District of Florida
Foreign Representative: Campi Servicos Empresariais Ltda.
No. 238, Rua Ministro Gastao Mesquita
Sao Paulo SP
Signed by Ana Cristina Baptista
Campi, as representative of the
Foreign Representative
Foreign Proceeding: Bankruptcy Liquidation pending
before the 3rd Civil Court of the
Judicial District of Tatui/Sao
Paulo, Brazil
Foreign Representative's
Counsel: Nyana A. Miller, Esq.
SEQUOR LAW
1111 Brickell Avenue
Suite 1250
Miami Florida 33131
Tel: (305) 372-8282
Email: nmiller@sequorlaw.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/75OCOPY/RONTAN_TELECOM_COMRCIO_DE_TELECOMUNICAES__flsbke-25-11421__0001.0.pdf?mcid=tGE4TAMA
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C O L O M B I A
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COLOMBIA: IDB OKs Loan in Advancing Integration Into Value Chains
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The Inter-American Development Bank (IDB) approved a $600 million
program to support Colombia's integration into global and regional
value chains and boost its economic growth.
The program is the second operation in a programmatic series
launched in 2022, supporting a set of reforms aimed at improving
the business climate, reducing trade costs, and boosting the
productivity of export-focused micro, small and medium-sized
enterprises (MSMEs) to attract productive and sustainable
investment.
The policies promoted by the second program will benefit more than
43,000 exporting companies and over 210,000 MSMEs, including
women-led firms that have the potential to become exporters.
Of the total financing amount, $500 million comes from the IDB's
ordinary capital, and $100 million from the Korea Infrastructure
Development Co-Financing Facility for Latin America and the
Caribbean (KIF).
The IDB loan has a 19-year amortization term, a 6.5-year grace
period, and an interest rate based on SOFR. The KIF loan has a
15-year amortization term, a 3-year grace period, and an annual
interest rate of 2.5%.
As reported in the Troubled Company Reporter on Aug. 7, 2024, Fitch
Ratings has affirmed Colombia's Long-Term Foreign Currency
Issuer Default Rating (IDR) at 'BB+' with a Stable Rating Outlook.
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M E X I C O
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ACCURIDE CORP: Judge Poised to Approve Lender Takeover Plan
-----------------------------------------------------------
Dorothy Ma of Bloomberg Law reports that on February 11, 2025, a
bankruptcy judge said she will approve Accuride Corp.'s
reorganization plan, allowing the wheel maker, backed by private
equity firm Crestview Partners, to proceed.
Under the plan, DIP lenders will receive 95% of the new equity,
while prepetition term loan lenders will get 5% on a pro-rata
basis, according to court filings.
The DIP lenders, comprising a majority of prepetition term loan
lenders, have provided approximately $130 million in DIP
financing.
Court documents identify KKR & Co., Guggenheim, and Caspian Capital
as some of the pre-petition term loan lenders, the report states.
About Accuride Corp.
Accuride Corporation and its affiliates are a global leader in
steel and aluminum wheels and wheel-end components and assemblies,
supplying innovative products to over 1,000 customers in the
commercial vehicles, passenger cars, agriculture, construction and
industrial equipment markets.
Headquartered in Livonia, Michigan, the Debtors are part of a
global enterprise that employs approximately 3,600 individuals at
facilities in the United States, Canada, Mexico, Germany, France,
Turkey, Russia, and China.
Accuride's U.S. entities first filed for Chapter 11 protection in
October 2009, also in Delaware, to restructure in excess of $675
million in debt. The Court confirmed the Company's Plan of
Reorganization in February 2010.
On Oct. 9, 2024, Accuride Corp. and its U.S. entities filed
voluntary petitions for protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. Del. Lead Case No. 24-12289). Accuride
reported $500 million to $1 billion in assets and liabilities as of
the bankruptcy filing.
In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis
LLP as bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP, as
local bankruptcy counsel; Quinn Emanuel Urquhart & Sullivan, LLP as
special counsel; Perella Weinberg Partners LP as investment banker;
and Deloitte & Touche LLP as independent auditor. Alvarez & Marsal
North America, LLC is the CRO provider and Omni Agent Solutions is
the claims agent.
On Dec. 10, 2024, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors in these Chapter 11
cases. The committee tapped McDermott Will & Emery LLP as counsel.
CREDITO REAL SAB: Chapter 15 Case Summary
-----------------------------------------
Chapter 15 Debtor: Credito Real, S.A.B. de C.V.,
SOFOM, E.N.R.
Av. Insurgentes Sur, No. 730
20th Floor
Col. Del Valle Norte,
Alcaldia Benito Juarez
Mexico City 03103
Mexico
Business Description: The Chapter 15 Debtor (together with its
non-debtor affiliates) was one of the
largest non-bank financial lending
institutions in Mexico. Before winding
down its operations, the Company offered
innovative financial solutions to
segments of the population that were
underserved by the traditional banking
system. The Company's customers were
located predominantly in Mexico,
elsewhere in Latin America, and in the
United States. Over the course of
nearly 30 years, the Company built a
diversified and scalable business
platform focused primarily on providing:
(i) loans paid via payroll deduction;
(ii) consumer loans;(iii) loans for new
and used car purchases; (iv) small and
medium enterprise loans; and (v)
factoring and leasing designed to fund
the working capital needs of small and
medium enterprises. These portfolios
were historically funded by the
Company's own capital, debt securities
issued in the capital markets, and bank
credit lines.
Foreign Proceeding: Corporate Liquidation Proceeding
(Case No. 691/2022) pending in the 52nd
Civil State Court of Mexico City, Mexico
Chapter 15 Petition Date: February 7, 2025
Court: United States Bankruptcy Court
District of Delaware
Case No.: 25-10208
Judge: Hon. Thomas M Horan
Foreign Representative: Robert Wagstaff
600 Brickell Avenue, Suite 2550
Miami, FL 33131
United States of America
Foreign
Representative's
Counsel: John H. Knight, Esq.
RICHARDS, LAYTON & FINGER, P.A.
920 North King Street
Wilmington DE 19801
Tel: (302) 651-7700
E-mail: knight@rlf.com
Estimated Assets: Unknown
Estimated Debt: Unknown
A full-text copy of the Chapter 15 petition is available for free
on PacerMonitor at:
https://www.pacermonitor.com/view/VJI5NTY/Robert_Wagstaff_and_Credito_Real__debke-25-10208__0001.0.pdf?mcid=tGE4TAMA
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T R I N I D A D A N D T O B A G O
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CARIBBEAN AIRLINES: Operating Profit Declines 51% in 2024
---------------------------------------------------------
Trinidad and Tobago Guardian reports that Minister of Finance Colm
Imbert said that majority state-owned Caribbean Airlines Ltd (CAL)
reported an operating profit of US$12.1 million in 2024. The
profit, which excludes debt service, represented a decline of 51
per cent, compared to the operating profit of US$24.7 million in
2023, according to Trinidad and Tobago Guardian.
Speaking at a customer appreciation event at Queen's Hall, Imbert
said CAL witnessed a remarkable turnaround in its performance in
2023, "moving from an operating loss of US$36.7 million in 2022 to
an operating profit of US$24.7 million, excluding debt service,"
the report notes.
He said the decline in the airline's operating profit in 2024 was
due to the following factors – increase in maintenance costs,
handling costs and security flight operations, the report relays.
Imbert said the airline's total revenue grew from US$306.4 million
in 2022 to US$430.9 million in 2023, an increase of 41 per cent,
the report notes.
"For 2024, the airline recorded revenue of US$444.6 million an
increase of 5.2 per cent. This was despite a decline of US$15 per
passenger on the international routes due to competition," said
Imbert, adding that the rise in CAL's revenue "underscores the
resilience and dedication of the entire Caribbean Airlines team,
the report discloses.
He said central to the airline's success is its approved strategic
plan, which is guiding its actions through to 2027 and a key pillar
of the plan is growth, which Caribbean Airlines continues to pursue
with vigor and focus, the report says.
"In alignment with this strategy, the airline has been exploring
strategic collaborations, such as discussions with Saudi Arabia's
Air Connectivity Program, aiming to enhance its network and
reflecting its dedication to connectivity between T&T, the
Caribbean, and the global community, the report relays.
Imbert said that as the majority shareholder of the airline, the
Government of Trinidad and Tobago has steadfastly supported it, in
a way that touches every traveler on the domestic airbridge, the
report says.
He said that currently, each adult passenger traveling on the
domestic airbridge pays $400 per return ticket and $300 for a
return ticket for each child, the report notes.
"Without Government subsidisation, each passenger, whether an adult
or child, would be required to pay approximately $870 for return
airfare, give or take market fuel prices and other charges, the
report discloses.
"Maintaining affordability on the domestic airbridge is a such a
key transportation policy position of this Government that in 2019
a policy decision was taken to increase the ticket subsidy by
$105.00 per adult airfare and $155.00 per child each way. In
total, this subsidisation ranged between $40 million and $73
million per year, over the period July 2015 and July 2024,
normalizing for the much-needed Government interventions over the
COVID-19 epidemic," said Imbert, the report notes.
He added that in the challenging COVID-19 period, the Government of
T&T, as did many other Governments across the global landscape,
assisted CAL with its obligations to its lessors amounting to
approximately $285 million, as well as with payments to National
Petroleum Marketing Limited for fuel, the report adds.
=================
V E N E Z U E L A
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VENEZUELA: Needs T&T Private-Sector Investment
----------------------------------------------
Trinidad and Tobago Guardian reports that while Venezuela has
chartered its path for economic recovery and has huge gas reserves,
enough for Trinidad and Tobago and other countries, that country
located on the northern coast of South American needs investments.
Such investments also need to be integrated and must also work in
Venezuela's interest, says Santiago Fontiveros, partner of the
private equity energy company, Sucre Energy Group, according to
Trinidad and Tobago Guardian.
He made the comments while speaking on a panel titled, "Investing
in Regional Gas Market Integration" hosted by the T&T Energy
Chamber on day two of the T&T Energy Conference which was held at
the Hyatt Regency, the report notes.
"In the authorities' mind, there is going to be a lot of need for
natural gas in the country and that's important to understand, as a
negotiation tool, as a geopolitical strategy and also we think as
steelmakers that is the key to understanding Venezuela's needs so
that Venezuela can also help Trinidad with its needs, the report
relays.
"The good thing is there is plenty of gas. Enough for Venezuela,
enough for Trinidad, enough for Columbia and other countries . . .
but obviously Venezuela needs a lot of investment. It needs a
framework, both legal and economic, that can work for the investors
and the nation," said Fontiveros, the report says.
T&T, he noted, "is doing the right things" and has been doing so in
the last few years by establishing a channel of communication with
the Venezuelan government, the report notes.
"And if there is one thing we are trying to communicate is that the
opportunity for cooperation is there but the key to unlocking that
value is understanding the needs of Venezuela and what we are
trying to get at as a country. So that if we help Venezuela to get
there faster, there will be much more gas for the region, the
report discloses.
"We have invested a lot of money in trying to understand the
flaring side, what we're flaring, what is the gas needed for and we
know the opportunities are there. But if you go and say, 'Ok I want
to invest and I just want to get the gas out,' that's probably not
the right way to do it because there are a lot of needs in the
nation for that gas. But if we go and say, 'Let me help you with
the situation, let me invest with you along. Let me cover your
needs, you have plenty of gas also for me and for the region,' I
think that's a winning speech," Fontiveros explained, the report
says.
He said if this "winning strategy" is looked at, the
"macro-political and the macroeconomics of gas will come into
place," adding that "it just makes a lot of sense," the report
discloses.
However, the question is "How we can make it faster, better and
more integrated," Fontiveros added.
Noting that Venezuela country has huge reserves including known
associated gas offshore and onshore reserves upward of 200 trillion
cubic feet, Fontiveros said it's not the sheer size of the reserves
that makes Venezuela great but the accessibility of these fields,
the report notes.
"It's pretty much a plain terrain. You can drive a Toyota Corolla
to most of the fields and within a ratio of 30 to 45 minutes you
have five-star hotels to the main fields where the flaring is
happening," he explained.
Fontiveros further noted that Venezuela has "idle industrial
capacity for around 600 to 1 billion cubic feet of gas" which has
already been built although being "depreciated," the report
relays.
"But it's there. With private investment you can restart those ...
so the message is, there is enough gas but you need private
investment. So with private investment you start to build trust,
trust to start with understanding each one's needs. It starts with
diplomacy. It starts with business people putting their brains
together thinking, 'How do we arrange this? How do we structure
this?' That's what the private sector is good at," he added.
Potential opportunities for Venezuelan and T&T services companies
working together were also brought to the fore, the report notes.
Julian Grateron, director, Camara Petrolera de Venezuela
(Venezuelan Oil Chamber) said perhaps in the future, there can be a
"bi-national chamber" between Venezuela and T&T to further
strengthen the energy services sector, the report discloses.
"In Venezuela, we are very eager to share information between
service companies and that's the invitation for the TT companies,
to come to Venezuela and we could share market intelligence,"
Grateron outlined, the report says.
Grateron is also a director at Servi Compresores CA, a company
specialised in the manufacture and repair of valves, parts and
components for reciprocating compressors in the oil and gas
industry, the report relays.
He said the company's main goal is to obtain all the data from the
final users and share this with the chambers, the report notes.
In stressing how critical data sharing remains to establishing new
linkages and fostering greater ties, Grateron said six months ago
he got a call from a T&T entity that wanted to do business in
Venezuela, the report relays.
However, this could not be brought to fruition.
"We didn't have enough information about the market, the
regulations, the due diligence. We didn't progress in this
conversation so it's one example of what we should have as a
service for both chambers and we should develop these
conversations," Grateron said as he stressed, "We have to
strengthen these Caribbean communities of service providers," the
report reports.
Fontiveros also echoed there is a big opportunity for locals to
work in Venezuela, the report notes.
"Both because they are interested in helping because it is
monitisable and you're interested in Venezuela having a proper gas
market so that it helps with the export and also because you guys
have a lot of expertise in the petrochemical sector which is
something that is a top priority for the government, the report
relays.
"We start with what we have and increment is the petrochemical
sector. If you look at one of the transformations that they
continue to talk about is what they call diversifying within the
sector. So coming from oil, to gas and petrochemical as sources of
revenue, not just dependent on oil and that's a big priority
politically. So what better than our neighbours . . . you guys
have done an amazing job in building that infrastructure,"
Fontiveros said, as he recalled his visit to the Point Lisas
Industrial Estate last year, the report recalls.
He reiterated that there is so much both countries can do regarding
onshore, petrochemicals and in the export of gas, the report adds.
*********
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