Mexico Pemex Q2 losses deepen amid lower prices, weaker exports

26 July 2013 19:46  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Petroleos Mexicanos (Pemex), the state-run oil and petrochemical giant, posted on Friday a second quarter net loss of Mexican pesos (Ps) 49.0bn ($3.87bn, €2.90bn), a sharp drop compared with the Ps33.6bn loss in the prior-year period.

In a conference call with investors, Pemex’s chief financial officer, Mario Alberto Beauregard Alvarez, said the result was a consequence of lower sales revenues caused by a slip in Mexican crude prices over the quarter from $99.97/bbl to $96.93/bbl, a decrease in export volumes and a stronger peso.

Total revenues – domestic sales and exports combined – fell by 3.2% in the April-June period to Ps393.2bn from Ps406.1bn a year ago, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 8.4% to Ps265.0bn from Ps289.2bn, the company said.

Crude oil production averaged 2.52m bbl/day, a 1.1% decrease compared with the prior-year quarter, while crude processing rose by 46,000 bbl/day to an average 1.30m bbl/day, mainly due to a boost in capacity at Pemex’s revamped Minatitlan refinery, the company said.

Production of refined products rose by 4.7% to 1.46m bbl/day, while a resumption of operations in the aromatics and derivatives chains, and a boost in production of amorphous and octane-based gasolines, benzene, toluene and xylene (BTX), resulted in a 16% jump in petrochemical production to 1.36m tonnes.

The results were announced amid speculation that sweeping plans to strengthen Pemex’s resources through partnerships with the private sector would be unveiled as early as next month.

While the Pemex board acknowledged that a decision on the future of the company was due to be made in the second half of 2013, it declined to comment on details.

“That is something that the ministries of energy and finance are working on,” said Alvarez during the conference call.

($1 = €0.75, $1 = Ps12.66)

By: Simon West

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