President Energy sees no material impact from Argentina currency controls

Argentina-focused upstream oil and gas company President Energy said on Monday that it does not expect recent currency controls implemented there to affect its business.

"The Government of Argentina on Sunday 1 September announced certain currency controls aimed at reducing market volatility and containing the impact of fluctuations of financial flows on the real economy as well as, inter alia, at assuring the normal working of the economy," the AIM-listed company said.

The measures, which target capital flight, do not restrict trade and are not expected to impact President's ability to service and repay its inter group debts in the normal course of business.

"These measures are therefore not anticipated to have any material adverse effect on President's business which continues in the normal way," it said.

Chairman Peter Levine: "There is no denying the macro situation in Argentina is challenging and volatile and everyone who believes in the medium to long term prosperity of this country from all sides of the political spectrum hopes for a more stable position once the uncertainty of the impeding elections is resolved.

"Irrespective of this we note the understandable concerns of our shareholders, hence the need to keep the market updated as we have done, are now doing and will continue to do. We do so from a position on the ground as indeed I am and have been at all times over this recent period."

Under the new measures put in place, all companies in Argentina must now request permission from the country’s central bank to sell pesos and buy foreign currency to make transfers abroad.

The government said the new currency controls were needed in order "to ensure the normal functioning of the economy".

Individuals in Argentina can buy up to $10,000 a month freely, but should they wish to buy anymore, they too need permission from the central bank.

At 1525 BST, the shares were down 2% at 4.80p.