In 2022 the operating deficit of the 34 public companies jumped 72% in dollars, from about 3,800 million to almost 6,500 million dollars. For reference, it can be noted that social security spending grew by 25 points less than inflation last year, which meant that the pension assets adjusted by the pension mobility formula lose about 11 points of purchasing power. It is a sample of where scissors do not pass. And where does it go?
The operating deficit of these companies is given by the difference between the income they derive from their operations and the expenses they have to incur to carry out these operations. That red of public companies is equivalent to one point of GDP. To cover this shortage, companies receive direct wire transfers from the National Treasury.
The official data
The red of these companies has not stopped growing in recent years. It was US$1,818 million in 2019; It soared to $2,323 million in 2020 and reached $3,764 million in 2021, according to official data. In 2022, it reached a record $6,481 million.
This week the Ministry of the Economy released a complete report on what happened to public companies in 2022, which allows you to verify that the operating deficit continued to expand dramatically.
THE current and capital transfers that the National Treasury allocated to public companies rose in 2022 to $797,063 million, equal to US$ 6,131 million.
Heavy operating losses have not prevented wholly state-owned companies -YPF and public banks are not included in this report- from incorporating new employees. In a year, plant personnel grew by 1,323 employees, from 91,754 to 93,077 people who work for national state-owned companies. There has been no freeze on vacant posts in this sector. One in three positions in this group of companies belongs to the railways.
As this newspaper reported, the operating deficit of public companies can be explained by what essentially happens in a handful of them. Enarsa, Ferrocarriles, Aerolíneas Argentinas, AYSA, Correo Argentino, Radio and Television and Río Turbio Carboniferous Camps (see infographic).
At the root of the deficit is the economic policy chosen by the Kirchner governments since 2003, and in particular the decision to heavily subsidize utility rates. In fact, half of the operating deficit for 2022 corresponds to Enarsa, the public company that imports energy at market prices and sells it at a lower price to local distributors. This characterization does not reach Aerolíneas Argentinas or even Radio and Television, Moreover.
As for Enarsa, the report prepared by Economía explains the situation of this company as follows: “The operating expense to be paid by Enarsa is intended to pay the corresponding dues for the import of LNG, among other obligations.” On the income side of this company, he points out: “It should be noted that 28.3% of current resources (of public companies) can be explained by the transfers that the company ENARSA receives from the National Administration, mainly intended to cancel the consumption of gas corresponding to the injection from Bolivia in relation to the obligations deriving from the contract for the sale of natural gas stipulated between ENARSA and YPFB and from the fees deriving from the Gas.Ar Plan”.
The announced cut in tariff subsidies – which the IMF has requested to deepen starting from May of this year – is having less effect than expected. Enarsa’s expenses, which rose last year due to soaring international energy prices, were not in the least offset by a cut in subsidies. This year, due to lower prices and the possible inauguration of the Néstor Kirchner gas pipeline, their number is expected to improve significantly. But you never know.
Public companies as a whole reported current revenues totaling $705,875 million in 2022 – a 71.6% increase for the year – but current expenses grew 102.4%, jumping to $919,662 million .
The same report indicates that the public companies’ operating income was a deficit of $849,050.3. If this data is translated into dollars – taking as reference the average exchange rate in 2022, which was 130 dollars -, the result shows an operating deficit of 6,481 million dollars.
Trains and airlines
Behind Enarsa, the company with the second highest operating deficit is Argentine railwayswhich he exhibited a red of 1,329 million dollars (3.64 million dollars per day), 40% more than the 947 million US dollars in 2021. The train deficit is mainly explained by the fare policy: what passengers pay is far from covering the real cost of a ticket.
In 2022, the Passenger Trains Branch (OFSE) had operating income (ticket sales, basically) of $4,365 million, but its operating expenses were $178,000 million. Personnel expenses rose to 114,000 million dollars.
The expenditure on personnel wages is explained because the set of state-owned companies in the article, including freight service, employs 30,636 people. Indeed trains are the largest employer in the country, compared to other public and private companies.
Argentine airlines it must be the only public company that sells its services at market prices. In other words, a ticket to Mendoza or Madrid can have a similar value if you travel with airlines or with a private company. Despite operating at market values, the “flagship” airline is unable to come close to breaking even in operational terms. In 2022 its deficit in this area was $609 million, yes, less than the $836 million in 2021, when the pandemic was still affecting the sector. Airlines have already cost the Treasury (citizens) more than $6,000 million in a decade. In 2022, its workforce increased from 11,308 to 11,682 employees.
An extreme case is that of Coal deposits of the Turbio river. The numbers reported by economy say this: it had revenues of only 818 million dollars and operating expenses of 15.615 million. Of this figure, 13.838 million (88%) went to pay the salaries of its 2,212 employees. Despite the virtual bankruptcy situation, YCRT added 60 employees last year.
Those with positive balances
There are a few companies that closed 2022 with positive numbers in terms of operating results: INTEA (Agricultural Technological Innovations) won $1 million, COME (High value-added technological services and developments) records a favorable balance of US$ 3 million; dioxitek (supply of uranium dioxide for the production of fuel elements for the Embalse and Atucha I nuclear power plants) won $8 million; Tandanor (shipyard) added US$11 million; military fabrications US $12 millionNASA (nuclear plant operator) US$57 million e AGP extension (General Administration of Ports) US$ 68 million. In total, balance in favor of US$160 million.
In his opening speech to the ordinary sessions, President Alberto Fernández stressed that those who criticized public companies were an advance of the right to recreate closures and privatizations.
The situation of public companies is one of the points being discussed in the opposition economic teams. A few days ago, one of his main references underlined: “There are companies to reorganize, others to privatize and others to close”. It will undoubtedly be one of the hottest discussions to take place during the next presidential term.
Source: Clarin
