Mexico Pemex posts deeper Q4 loss on rising costs

28 February 2013 22:14  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--A rise in sales costs and operating expenses pushed Petroleos Mexicanos (Pemex) into a deeper Q4 net loss of Mexican pesos (Ps) 26.9bn ($2.1bn, €1.6bn) from a loss of Ps15.7bn in the year-earlier quarter, the state-run energy company said on Thursday.

Revenues for the quarter stood at Ps420bn, flat compared with the same period in 2011, while sales costs rose 4.5% to Ps228bn, the company said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Ps187.4bn, down by 17.4% year on year.

Meanwhile, petrochemical production in the quarter decreased by 23% year on year to 1.02bn tonnes, the company said.

Pemex said the drop in petrochemical output was caused by a temporary shutdown of the aromatics chain as a result of the incorporation of a new continuous catalytic regeneration (CCR) platforming plant in the Cangrejera petrochemical complex.

The company also noted a drop in production at the ethane derivatives chain, primarily due to delays in the resumption of operations at the Pajaritos ethylene plant.

For the whole of 2012, net income stood at Ps4.9bn compared with a loss of Ps79.6bn in 2011, mainly due to an increase in domestic sales revenues and a positive variation in the comprehensive financing result, Pemex said.

The company posted record sales in 2012 of Ps1,646bn, up by 5.7% compared with Ps1,558bn in 2011, as an 11.3% increase in domestic sales offset flat export sales.

Pemex’s taxes and duties reached a record high of Ps902bn, exceeding the previous high of Ps874bn in 2011, the company said.

The Mexican government relies on Pemex revenues to fund almost a third of the federal budget.

($1 = €0.76, $1 = Ps12.76)

By: Simon West

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