PETROPERÚ is recovering the market and profits are projected

The current PETROPERÚ Administration set the immediate objectives of finishing the construction of the New Talara Refinery with the lowest possible cost and term, recovering its share in the liquid fuels market, placing the oil worker at the center of its management, and initiating the return to oil exploitation, among other points. In just over two months, the first objective has been met and accelerated steps are being taken to fulfill the following within the framework of the Company's economic recovery.

Regarding the new refinery, savings of 234 million dollars have been obtained by shortening the completion period of the work -from September to April 2022-; as well as significant reductions due to the impact of the pandemic during 2021, and due to the better commercial conditions for the supply of natural gas.

Regarding budget execution, as of November of this year, PETROPERÚ has obtained a higher income, as a result of the sales strategy applied in November, which allowed competitive prices, optimizing efficiencies in expenses and costs. In this way, it achieved a recovery of its participation that reached 42%, which contributes to strengthening its leadership in the national hydrocarbon market.

In commercial terms, the foregoing implied the acquisition of 156 service stations (blanks) and the incorporation of 14 service stations to the PETROPERÚ Network; as well as the acquisition of 21 industrial clients. In addition, actions to reduce prices and discounts were carried out, which allowed us to have more competitive commercial proposals and therefore higher sales in diesel and gasoline; with which the market share increased.

While the Company reduced its expenses by 233 million soles in October and November of this year. On the other hand, despite various factors, PETROPERÚ registered a 155% increase in EBIDTA as of November of this year and a 313% increase in operating profit, compared to the same period of the previous year. Which suggests that PETROPERÚ will end 2021 with figures in the black, unlike last year.

Likewise, as of November 2021, for the sake of transparency in PETROPERÚ's management, the Financial Statements have been communicated monthly to the Superintendency of the Securities Market; however, the obligation is quarterly.

Regarding the Company's personnel, the harassment actions against the workers inherited from the previous administration have been suspended and the stage of direct engagement in the collective bargaining process with all the unions that group employees and of supervisors that make up the National Convention of Trade Unions has been satisfactorily concluded.

Other relevant achievements in the field of return to oil exploitation have been the approval -with Perupetro- of the Temporary License Contract Draft for Lot I, in Talara, the approval of the License Contract Draft to operate Lot 192, and the contractual assignment of 100% of Lot 64, both in Loreto. To which is added the strengthening and restructuring of PETROPERÚ, with the consolidation of the Exploration, Exploitation and Pipeline Management, in line with the advance towards the vertical integration of the Company.

Finally, after 75 days of irregular occupation of the facilities of Station 5 of the North Peruvian Pipeline by the Atahualpa native community and other indigenous organizations, who claim the State for breaches of agreements, it was possible to regain control of said facility, through dialogue with the native leaders, who have granted a truce to the government to address their claims, restarting the operation of the North Peruvian Pipeline on December 22.