Shares of Argentine energy companies rose up to 23% on Wall Street after the gas tariff. Photo: Bloomberg.

Las shares of Argentine companies listed on the New York Stock Exchange They rose sharply this short week, especially the privatized energy companies. These increases were encouraged by the increase in gas rates authorized by the Government of Milei, up to 460% in April.

Likewise, from now on the Gas and electricity tariff scheme will be governed by monthly increasesimpacting inflation and strongly affecting the income of working families, whose salaries and income do not increase monthly and do so below prices.

Wall Street. Among the papers of Argentine companies that operate on Wall Street, the most important weekly gains were recorded by the papers of Transportadora de Gas del Sur (+23%); of Central Puerto (+14%); and of Edenor (+9%).

Local stock market. For their part, shares in the local stock market rose up to 6.6%, led by Southern Gas Carrierfollowed by Central Puerto (+6,4%); and of Pampa Energía (+6.4%). In the accumulated of the week, the highest returns were obtained Transportadora de Gas del Norte (+16.2%); Transportadora de Gas del Sur (+13.8%)y Central Puerto (+8,7%).

Through the resolutions from 112 to 123 published in the Official Gazette, Enargas (National Gas Regulatory Entity) confirmed this Wednesday the increase in the fixed charge over the variable charge for the gas transportation service. Until now, companies have been charging half of their income through the variable charge and the other half through the fixed charge, but from now on all the Distribution Added Value (VAD) will be applied to the fixed charge with the argument to “have more predictability” in their income throughout the year.

This is a huge business for the privatized energy companies, dumping their costs on users, while the Milei Government moves forward with the fiscal adjustment requested by the International Monetary Fund (IMF). The rate increase will impact homes, businesses, industries and other non-domestic users on the eve of winter.

But it also establishes a monthly rate update. “As happened for the electricity sector, rates will be updated monthly starting in May following an automatic formula. In this case, the updates take into account the wage index, wholesale prices and the construction cost index,” they stated. from Personal Portfolio Investments. Thus, companies celebrate the rapid increase in their profitability, which is reflected in the fury of their actions.

Increase in bonds in dollars. “Dollar bonds had the best week in months,” they said from SBS. It is because increases were also recorded in the main dollar-nominated bonds. These closed on the Buenos Aires stock exchange with increases of up to 2.4%with which they accumulated progress of up to 5.2% in the week and of 55.6% in 2024.

In this way, parities average 52%. “Global bonds they climbed 57% since the (presidential) runoff last November,” GMA Capital said.

Risk country. The improvement in assets was reflected in the so-called “country risk”, which fell 4.2% to 1,302 basis points, its lowest since September 2020 when another base of calculations began after a giant debt swap. Throughout the week, this indicator (which reflects the differential of the Argentine rate with respect to the North American interest rate) measured by the JP. Morgan bank fell 10.1%.

The Ministry of Energy estimated the Basic Energy Basket (CBE), which corresponds to electricity and gas, at $40,000 for a home with “reasonable consumption.” Services that are essential should be guaranteed for everyone, however with the arrival of the cold the government promotes criminal rates on families while the privatized service companies continue to pocket millions.

It is necessary the expropriation and nationalization of these privatized companies and put them under the management of their workers and users to provide an economical and efficient service according to our needs and not in favor of their profits. Guaranteeing that their access is an essential right, against the current tariffs that fall more heavily on the popular sectors. And on the path to fighting for a transition of the energy matrix in harmony with the environment.


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