US fuel distributor Esso lowered gasoline prices in Argentina on Monday by 2.1-2.9% after the Argentine government threatened to exempt the company from a resolution allowing companies to import diesel tax-free. Anglo-Dutch oil company Shell and Esso raised fuel prices in early March, leading President Nestor Kirchner to call for a boycott of their products. Shell’s sales have fallen dramatically since the boycott began and the company announced last week that is was lowering gas prices.
Category: Paywall
Posted inDaily Brief
Samarco Profits Double
Net profits at Samarco, the world’s second-largest exporter of iron ore pellets, surged 103% to $207 million in 2004, more than twice its 2003 net of $102 million last year. Gross sales increased 28% to $641 million up from $500 million in 2003. Production volume rose 4% to 25.2 million tons. Samarco is planning $750 million in investments. The Belo Horizonte-based company is a 50-50 joint venture between Australia’s BHP Billiton and Companhia Vale do Rio Doce.
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Fox Wins Energy Ruling
In a victory for Mexican President Vicente Fox, Mexico’s Supreme Court ruled the president had the right to allow private companies to generate electricity in the country. The lower house of Congress had asserted that only the government had the right to generate electricity and was seeking to annul all concessions awarded to private companies. The ruling comes as Fox steps up calls for Congress to open the economy to private investment in energy.
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Scotiabank Sues Argentina
Canada’s Bank of Nova Scotia is seeking more than $600 million in damages from the Argentine government, blaming actions by authorities for the losses it suffered when it shut down its Argentine banking unit, Quilmes, during the economic crisis in 2002. When the Argentine government revoked Quilmes’ license the bank had 91 branches and 1,700 employees.
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Gol’s Revenue Rises
Brazil’s no-frills airline Gol Linhas Aereas Inteligentes reported first quarter revenue of $225 million, a 36% increase from the same period of 2004. The company’s revenue per seat kilometer rose 6.9% to $8.24. Gol, which started operations in early 2001, became a publicly traded company last year.
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TAM to Sell Shares
TAM, Brazil’s second-biggest airline, said it plans to sell shares in an offering to Brazilian and US investors. The Sao Paulo-based airline and its controlling shareholders, including the Amaro family, filed a petition to sell preferred shares as part of the offering. The company has not yet disclosed details of the offering and the dates of the sale.
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Argentina: Iglesias Predicts Growth
Argentina will continue to attract investors as its economy expands, according to Enrique Iglesias, president of the Inter-American Development Bank. Argentina’s GDP grew 9.1 percent in the fourth quarter of 2004. Exports have jumped 34 percent over the past two years and consumers are becoming more confident about spending as unemployment falls. The country’s jobless rate dropped to 12.1 percent at the end of 2004, the lowest level in a decade.
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Gutiérrez Holds On
Ecuadorian President Lucio Gutiérrez said he would not step down in spite of calls for his resignation from protestors and political opponents. Thousands of people took to the streets of Quito late last week to protest his decision to dissolve the Supreme Court. Gutiérrez declared a state of emergency to stop the protests but quickly revoked the measure Saturday after the military and police refused to take action against the protestors.
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Telmex to Sell MCI Shares
Mexico’s dominant fixed-line telecom company Telmex, owned by Carlos Slim, has agreed to sell its shares in MCI to Verzion Communications. Telmex has 8.1% of the company. The agreement was reached after more than two months of negotiations between MCI, Qwest Communications and Verizon.
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People
The Brazilian government has confirmed Elifas Gurgel do Amaral, 49, as president of Anatel, the federal telecom regulatory agency. Gurgel, an engineer and reserve army colonel, had taken over on an ad hoc basis in January. He is a close ally of Communications Minister Eunício Oliveira and member of the PMDB party, a member of the ruling coalition. The government picked Gurgel over senior career Anatel officials, despite opposition from Finance Minister Antonio Palocci and telecom operators concerned that nominally independent Anatel is losing its autonomy. Brazil has one of the largest and fastest-growing telecom markets in the developing world.