PDVSA Says Social Spending Outstripped Investments (Venezuela)

[bemildred]

I especially like the horrified, muttering tone of this story.

Oct. 11 (Bloomberg) -- Petroleos de Venezuela SA, South America's largest oil company, spent more on social programs last year than it did on investing in its oil and natural gas businesses, hurting plans to boost output.

Petroleos de Venezuela's social spending last year totaled $4.35 billion as it spent $2.99 billion on ``operating assets,'' the company said in a public filing. Investments were 42 percent lower than forecast, the state-run oil company said in a filing with the U.S. Securities and Exchange Commission.

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The country, which has the largest oil reserves in the Western Hemisphere, needs to invest at least $2 billion a year to maintain output, analysts such as Jason Todd of Fitch Ratings in Chicago have said.

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``These new social commitments have not, to date, materially or adversely impacted Petroleos de Venezuela's ability to generate the necessary flow of eligible receivables to support payments on our indebtedness,'' the company said.

Bloomberg

[1932]

1. Social spending IS an investment. They're making sure they have educated

smart healthy venezuelans who can take the country and the company forward into the future.

[patdem]

2. Exactly..it is not the next quarter..but the next century they care about.

and if someone does not care beyond the next quarter the entire planet is doomed!

[1932]

3. Well said.

If I heard a politician say that they way you said it, I'd vote for him or her.

[papau]

4. Spent money on taxes rather than CEO salaries, graft, & secret wars

A shock to the corporate world, no doubt.

[NorthernSpy]

5. at this point, they're really scraping for a reason to complain

The problem for the partisans of the old order is that Chavez' program is actually working. Venezuela's economy is growing twice as fast as it was expected to. The neoliberals' predictions of disaster failed to come true.

So the privileged are pretty desperate to find a reason -- any reason -- to keep on bitching.

:eyes:


(edit: fixed typo)

[eridani]

6. So, it takes $2 billion to maintain output--

--and this jackass is griping about how they spent nearly $3 billion on this? :wtf: :banghead:

[bemildred]

7. Exactly.

:thumbsup: