Boro DE EMPRESAS
Santiago 31 de julio de 2012
Señor
Fernando Coloma Correa
Superintendente
Superintendencia de Valores y Seguros
Avda. Libertador B. O’Higgins N*1449, Piso 8
Presente
REF.: Comunica Hecho Esencial
Empresa Nacional del Petróleo
Inscripción Registro Valores N* 783
De nuestra consideración:
En virtud de lo dispuesto en el Artículo 9” y en el Artículo 10? inciso 2? de la Ley N* 18.045 de
mercado de valores, y en la Norma de Carácter General N*30, de esa Superintendencia, y
debidamente facultado, informo a Usted que con fecha 30 de julio en curso, la clasificadora de
riesgos internacional Standard 8. Poor’s ha efectuado un ajuste en la clasificación de riesgo de
la Empresa Nacional del Petróleo manteniendo la clasificación en “BBB-*, modificando el
Outlook desde “positivo” a “estable” .
Los factores que motivan esta actualización del estudio se encuentran explícitos en nota
adjunta de Standard 8, Poor’s.
Sin otro particular, saluda atentamente a usted,
Ricardo Cruzat Ochagavía
Gerente General
/ Empresa Nacional del Petróleo
ESNA 2 .
=IWAP 8… refinerías Sena sipetrol
ENAP en Magallan: ENAP REFINERÍAS S.A. SIPETROL S.A.
José Nogueira 110 Av, Borgoño 25777 – Concón, Chile fiago, Chile
:803000 – Fax (56)(2) 2803800
mo (56)(61) 2 o Teléfono (56)(32) 650200 – Fax [56)(32) 811243
vwww.enap.cl ww.enaprefinerias.cl
NIN
Research Update: Ea
Empresa Nacional del Petróleo
Outlook Revised To Stable From
Positive, ‘BBB-‘ Ratings Affirmed
Primary Credit Analyst:
Cecilia L Fullone, Buenos Aires (54) 114-891-2170; cecilia_fullone(Ostandardandpoors.com
Secondary Contact:
Fabiola Ortiz, Mexico City (52) 55-5081-4449; fabiola_ortiz(Ostandardandpoors.com
Table Of Contents
Overview
Rating Action
Rationale
Outlook
Related Criteria And Research
Ratings List
www.standardandpoors.com 1
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See Terms of Use/Disclaimer on the last page.
Research Update:
Empresa Nacional del Petróleo Outlook Revised
To Stable From Positive, ‘BBB-‘ Ratings Affirmed
Overview
+ Chile-based oil and gas company ENAP’s stand-alone credit profile (SACP)
continues to weaken due to volatile profitability and weak cash flow
generation.
e We are revising our outlook to stable from positive and the SACP to ‘b’
from ‘b+’, and affirming the ‘BBB-‘ ratings.
e The stable outlook still reflects our expectation that there is a very
high likelihood that the Republic of Chile would provide timely and
sufficient extraordinary support to the company in the event of a
financial distress.
Rating Action
On July 30, 2012, Standard £ Poor’s Ratings Services revised its outlook on
Empresa Nacional del Petróleo (ENAP) to stable from positive. At the same
time, we revised the company’s SACP to ‘b’ from ‘b+’. In addition, we affirmed
our ‘BBB-‘ ratings on ENAP.
Rationale
The SACP revision reflects ENAP’s deteriorating financial performance,
particularly in the refining and marketing segment. This is due to lower
global refining margins, a relative appreciation of price for its crude oil ‘
and rising energy costs. ENAP’s high debt continues to weaken capital
structure and credit metrics. Because we expect the firm’s free cash flow to
be negative in the next 12 months, ENAP is likely to continue refinancing most
of its short-term maturities, which will gradually increase its gross debt. We
expect that ENAP will continue to post funds from operations to total debt of
less than 5% and total debt to EBITDA of more than 10x during the next two
years amid continuing tight refining margins.
The SACP on the company incorporate its dominant as Chile’s only domestic oil
refiner, volatility and cyclicality in international refining margins, weak
profitability and cash flow generation, and high debt and difficulties
reducing it because of very limited free operating cash flow. The SACP also
incorporates ENAP’s enhanced financial flexibility and ability to tap credit
market thanks to government ownership. We continue to assess the company ‘s
business risk profile as fair and its financial risk profile as highly
leveraged.
Standard 82 Poor’s | Research | July 30, 2012
O Standard 8: Poor’s. All rights reserved. No reprint or dissemination without Standard 8 Poor’s permission. See Terms of Use/Disclaimer on the last page.
Research Update: Empresa Nacional del Petróleo Outlook Revised To Stable From Positive, ‘BBB-” Ratings
Affirmed
At the same time, the ratings on ENAP reflect our opinion that there is a very
high likelihood that the Republic of Chile (foreign currency: A+/Positive/A-1;
local currency: AA/Positive/A-1+) would provide timely and sufficient
extraordinary support to the company in the event of financial distress.
In accordance with our criteria for government-related entities, our view of a
very high likelihood of extraordinary government support is based on our
assessment of ENAD’s very important role as Chile’s only domestic oil refiner:
ENAP supplies about 70% of the local market’s needs. The company also has a
very strong link with the Chilean state, particularly regarding debt
authorization, budget approval, and tax payments.
Liquidity
We assess ENAP’s liquidity on a stand-alone basis as less than adequate. Our
assessment incorporates ENAP’s very good access to refinancing, good standing
in credit markets, and sound relationship with banks, due to its government
ownership.
As of March 31, 2012, ENAP had about $222 million in cash and short-term
investments. In 2012, following a weak first quarter, we believe that the
company will likely generate annual EBITDA below $300 million, pay interest
payments of approximately $200 million, and fund capital expenditures of $250
million. Due to the company’s very low or negative free cash flow, we
anticipate ENAP will continue to gradually increase its debt and refinance the
$668 million immaturity due 2012 and $338 million due 2013). We don’t expect
ENAP to pay dividends in 2012.ENAP’s financial debt doesn’t not have financial
covenants.
Outlook
The stable outlook reflects our expectation that ENAP will continue to play a
very important role in Chile’s energy policy. Any rating upside is limited at
this point and would depend on a significant improvement in the company’s
SACP, for example, if it’s able to materially reduce debt. We could lower the
rating if, in the next 12 months, there is further deterioration in ENAP’s
stand alone credit quality or if we perceive that the company has become less
important to the Chilean government .
Related Criteria And Research
+ Key Credit Factors: Criteria For Rating The Global Oil Refining Industry,
Nov. 28, 2011
+ Rating Government-Related Entities: Methodology And Assumptions, Dec. 9,
2010
e Stand-Alone Credit Profiles: One Component Of A Rating, Oct. 1, 2010
e Key Credit Factors: Business And Financial Risks In The Oil And Gas
Exploration And Production Industry, Nov. 10, 2008
* 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
www.standardandpoors.com 3
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Research Update: Empresa Nacional del Petróleo Outlook Revised To Stable From Positive, ‘BBB-‘ Ratings
Affirmed
Ratings List
Ratings Affirmed; CreditWatch/Outlook Action
To From
Empresa Nacional del Petroleo
Corporate Credit Rating
Foreign Currency BBB-/Stable/– BBB-/Positive/–
Senior Unsecured BBB-
Complete ratings information is available to subscribers of RatingsDirect on
the Global Credit Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard £ Poor’s public Web site at
www.standardandpoors.com. Use the Ratings search box located in the left
column.
Standard 62 Poor’s | Research | July 30, 2012 4
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