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Petrobras reactivates the factory with an investment of R$870 million despite a history of losses. Experts question the viability of the operation, which generated more profit while it was stopped. Is this a political move or a wise economic decision?
Petrobras invests heavily and reactivates the factory Araucária Nitrogenados (Ansa), which, ironically, generated more profit while it was closed.
The decision, which includes an investment of R$870 million, raises doubts about the viability of the operation. Is this reopening really necessary or just a shot in the foot?
On Thursday (15), Petrobras officially resumed production at the Araucária Nitrogenados (Ansa) fertilizer factory, in Araucária, Paraná.
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The ceremony, marked by the presence of President Luiz Inácio Lula da Silva and the president of Petrobras, Magda Chambriard, celebrated the return of a unit that had been in hibernation since 2020, after several failed sales attempts.
Economic viability is questioned
However, the reactivation of this factory, which was the cause of billion-dollar losses in the past, generates distrust.
According to Petrobras' 2019 balance sheet, the continuity of Ansa did not appear to be economically viable due to the characteristics of the market in which it operates and the projections of negative results. For many, the doubt persists: why invest in an operation that has already proven to be unprofitable?
Studies indicate feasibility, but experts disagree
According to a statement released by Petrobras, the decision to resume activities was preceded by studies that proved the technical and economic feasibility of the project.
However, this assessment does not convince all sector experts. According to a source interviewed by journalist Isadora Camargo, the factory is considered “extremely inefficient,” which calls into question the optimism surrounding the billion-dollar investment.
Ansa's history of ups and downs
Ansa's history is marked by ups and downs. Founded in 1982 and privatized in 1993, the factory was transferred to Vale Fertilizandos, which was later acquired by Mosaic. In 2012, under the Dilma Rousseff government, Petrobras repurchased the unit, but profitability remained problematic. Since then, Ansa has only made a profit in 2015, 2021 and 2022 — interestingly, in the last two years, the factory was closed.
Losses and operational performance are a concern
The losses accumulated by Ansa over the years are alarming. At the end of 2023, deficits totaled R$2,24 billion, according to data collected by Valor Pro. This scenario raises even more doubts about the return of operations.
The problem is not limited to net losses, but extends to operational performance. In eight years as a subsidiary of Petrobras, Ansa's revenue did not cover operating costs in seven of those years. In 2019, for example, sales revenue was R$606 million, while operating costs reached R$832 million.
Investment or political movement?
The question that hangs in the air is: what changed in the market to justify this reopening? If there is no radical change in market conditions, it is possible that the billion-dollar investment will be more of a political movement than a decision based on economic viability.
According to journalist Nelson Niero, from Valor Econômico, the reactivation of Ansa can be seen as an attempt to boost the local economy and generate jobs. However, it remains to be seen whether this strategy will not result in further losses for the state-owned company, which already has a history of loss-making operations at this plant.
What does the future hold for Ansa?
The decision to reactivate Ansa divides opinions, and the question that remains is: Will this reopening really bring any economic benefits or are we facing yet another social investment that weighs heavily on Petrobras' pocket? The next chapters of this story promise to bring more clarifications, but doubts remain.
What has changed? Simple, war between Russia and Ukraine. How can we continue to depend on important supplies coming from a war zone?
Send the reactivation bill to whoever deactivated it...you know who, right?
When guys get paid to misinform you:
Look who analyzed this.
According to a SOURCE heard by journalist Isadora Camargo, the factory is considered “extremely inefficient.
READY the source said. So, it's a loss. LOL
Simple, a political company, in which the abuses will generate more losses than profits, the important thing is the propaganda and marketing.
This site has become a **** propagandist and against the national industry.