2013 was a year to forget,but perhapsa good incentive to begin the task of improving business efficiency.
By Santiago Gutierrez
The 50 largest energy companies in Latin America posted revenues of $ 776 billion and earnings of $44.4 billion in 2013. Those figures represent 30% of the total revenues and earnings of the 500 largest companies in the region, the Latin 500,recently published by Latin Business Chronicle.
Last year was not particularly good for the top 50 energy companies. Their revenue fell by 5.1% from 2012.For petroleumcompanies, the decline was due to the usual reasons:a reduction in international crude oil prices.
But that only explains to a certain extent the substantial drop in revenues reported by the biggest five companies in the list. While the IMF oil price index had a one percent decrease last year, Petrobras posted a5.5% reduction in revenues; Pemex -3.2%; PDVSA -6.6%; Petrobras’ subsidiary BR Distribuidora-5.3%; and Ecopetrol a massive-13.8%. The fall is very important because the five make up for 58% of the total revenue of the Top 50.
The “big five”also have in common alarge state participation, which makes themvulnerable to political decisions that hinder their performance. It could be the case of national gasoline subsidies for Petrobras, or the accelerated recruitment for PDVSA. While in 2003 the Venezuelan oil company had 60,000 employees, Latin Business Chronicle´s ranking of the 100 largest employers in Latin America shows that the number …
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