In an effort to solidify Argentina’s fiscal surplus and bolster the Central Bank’s international reserves, President Javier Milei’s administration is advancing an ambitious and long-standing privatization initiative. The government’s approach aims to produce revenue in dollars through the sale or concession of state-owned enterprises. This is essential for the government, as the accumulation of foreign currency remains a primary concern for its economic strategy. However, a new development has emerged in the discussions: several of the companies earmarked for state sell-offs successfully achieved a surplus in 2025. Information from the annual balance sheet of Argentina’s Economy Ministry regarding the income and expenses of state-run companies indicates that four of the six key firms targeted for sale ended the year profitably, thereby raising questions about the timing of potential divestitures. In general terms, Argentina’s state-run companies collectively concluded 2025 with a financial surplus amounting to 903 billion pesos (approximately US$655 million). Nonetheless, this represented a decline of 19.1 percent from 2024, when the surplus was noted at 1.1 trillion pesos. Another method of assessment involves evaluating operating profit or loss, while omitting the financial aspects of accounts.
In accordance with this criterion, the sector experienced an operating deficit amounting to 1.3 trillion pesos (US$944 million). The deficits were primarily attributed to discrepancies at the state-owned gas importer ENARSA and the national railway services, each exceeding one trillion pesos. Conversely, the AySA waterworks, the state airline Aerolíneas Argentinas, and the Correo Argentino post office reported an operating surplus. The official privatization plan encompasses critical sectors including energy, transport, and infrastructure. The primary entities involved are Energía Argentina, Intercargo, Corredores Viales, Belgrano Cargas y Logística, and AySA. In numerous instances, the government has initiated bidding or concession processes, while in other cases, it is advancing with prior restructuring to enhance their attractiveness to private sector purchasers. Upon examining the circumstances on an individual company basis, it is important to highlight that a significant portion of the overall financial surplus can be attributed to ENARSA, the entity responsible for overseeing the energy infrastructure. It concluded the previous year with a surplus amounting to 324 billion pesos.
At any rate, that figure represented a decline of 31.8 percent compared to 2024. AySA reported an operating profit of 237 billion pesos; however, it also faced a financial deficit amounting to 18 billion pesos. The company attributes this gap to the fact that income from water rates, which saw an increase of approximately one percent per month in 2025, grew at a slower rate than the expenditures on works. Another entity targeted for concession by the government, which experienced a financial deficit in 2025, is Belgrano Cargas. The railway cargo company reported a loss of 41 billion pesos, significantly exceeding the nearly 6.2 billion pesos recorded in the prior year. In contrast, various state-owned enterprises concluded the year with favorable results, such as Intercargo, Corredores Viales, and Nucleoeléctrica Argentina. In each of the three instances, the government has initiated the formal process to divest or grant concessions in 2025. For Corredores Viales, bids have been opened for certain segments of national routes.
Intercargo reported a financial surplus nearing 30 billion pesos; Corredores Viales recorded a surplus of 39.6 billion pesos; and Nucleoeléctrica Argentina, responsible for managing Argentina’s nuclear power plants, achieved a surplus of 90.3 billion pesos. Notwithstanding the enhancement in figures, the government remains committed to its strategic plan. The primary aim continues to be acquiring dollars in the near term to bolster reserves. In this context, privatizations serve as a mechanism that complements alternative funding sources, particularly when access to international credit is constrained. Furthermore, the ruling party asserts that the private sector possesses the capability to manage these assets with greater efficiency, thereby lowering costs and enhancing the quality of services.