Peru’s state oil company, Petroperú, has reported a profit of $121 million, reversing losses from the previous year. This positive result is attributed to improved margins between crude oil and fuel prices, coupled with cost reduction measures. Despite the profit, Petroperú acknowledged significant liquidity problems hindered its ability to purchase sufficient crude oil. Consequently, production and sales volumes were negatively impacted by these financial constraints. The company benefitted from a favorable market situation, potentially linked to geopolitical events like the conflict in Iran. However, sustaining this profitability requires addressing the underlying cash flow issues to secure adequate oil supplies. Petroperú’s performance highlights a delicate balance between external market opportunities and internal financial challenges.