Mexico Pemex swings to Q3 loss on weaker volumes, lower prices

25 October 2013 19:04  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Petroleos Mexicanos (Pemex), the state-run oil and petrochemical major, on Friday posted a Q3 net loss of Mexican pesos (Ps) 39.2bn ($3.0bn, €2.2bn), a sharp decline from net profits of Ps24.5bn in the prior-year period.

Pemex attributed the loss to a 6.4% decrease in the volume of crude exports and a 2.4% drop in gasoline prices in the US Gulf of Mexico.

The company also noted a foreign exchange loss during the quarter of Ps3.6bn, compared with an exchange gain of Ps30.6bn in the prior-year quarter.

Total sales in the July-September period reached Ps409.3bn, almost flat compared with Ps408.9bn a year earlier. Domestic sales increased by 8.3%, while export decreased by 9.5%, the company said.

Third quarter earnings before interest, tax, depreciation and amortisation (EBITDA) totalled Ps261.3bn, down by 7.7% from Ps283.1bn recorded a year earlier.

Total crude production averaged 2.51m bbl/day, a 1.6% decrease compared with the prior-year period, while crude processing rose by 29,000 bbl/day to an average 1.20m bbl/day, mainly as a result of improved capacity at the revamped Minatitlan refinery.

Output of petroleum products was up by 3.6% year on year to 1.35m bbl/day as a result of a rise in production of automotive gasolines, diesel and jet fuel, Pemex said.

Petrochemical production increased by 20.8% year on year to 1.30m tonnes, mainly due to a 1.6% increase in production in the methane derivatives chain on the back of a rise in demand over the period.

Pemex also recorded a 159,000 tonne increase in output in the aromatics and derivatives chain due to the stabilisation of the continuous catalytic regeneration (CCR) platforming plant at the Cangrejera petrochemical complex.

The increase was partially offset by a 20.6% drop in output in the ethane derivatives chain, and to lower production of low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) following maintenance work.

In August, Mexican president Enrique Pena Nieto submitted government proposals to overhaul the country’s energy sector that would allow private companies to participate in oil, gas and natural gas liquids (NGLs) production in Mexico.

If reform is approved, petrochemical production would increase from current levels of 8m tonnes/year to 10m tonnes/year, Pemex said on Thursday on the company’s Twitter page.

Mexico’s congress is currently reviewing the proposed bills.

($1 = €0.72, $1 = Ps12.96)

By: Simon West

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