Mexico Pemex swings to Q1 loss on higher costs, lower revenues

26 April 2013 20:25  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Soaring costs, weaker export revenues and other factors helped drive Petroleos Mexicanos (Pemex) into a Q1 net loss of Mexican pesos (Ps) 4.4bn ($362m, €279), the Mexican state energy company said on Friday.

The loss, partially offset by a decrease in taxes and duties paid, compared with a net profit of Ps 40.4bn in the same quarter in 2012.

According to the company, a stronger peso, lower crude values and rising domestic energy demand affected export sales, which were down by about 12.7% to Ps 180.0bn from Ps 206.1bn a year earlier.

Domestic revenues improved slightly, up by 5.1% year on year to Ps 214.0bn from Ps 203.6bn, Pemex said.

Total revenues – domestic sales and exports combined – were down by 3.7% year on year.

Crude oil production remained stable in the quarter, averaging 2.54bn bbl/day, while total crude processing increased by 3.6% year on year, primarily due to a boost in processing at the company’s Minatitlan refinery on Mexico’s Gulf coast.

Production of petroleum products was up by 2.2% due to an increase in output of automotive gasolines, jet fuel, fuel oil and other products, Pemex said.

However, petrochemical production fell by about 7% during the quarter to 1.18bn tonnes from 1.27bn tonnes a year earlier, the company said.

Production of the propylene and derivatives chain fell by 30.2% due to a temporary shutdown of operations at the company’s acrylonitrile plant, while the methane derivatives chain was hit by a fall in fertilizer demand, Pemex said.

The drop in petrochemical output was partially offset by a production increase in other petrochemicals, including amorphous and octane-based gasolines, due to a resumption of operations in the aromatics and derivatives chains.

During the quarter the company spent Ps 58.5bn, which represented about 18% of total planned investments for the year, Pemex said.

($1 = Ps 12.15, $1 = €0.77)

By: Simon West

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