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Mexico's Pemex reports narrower 2nd-quarter loss but debts rise

Credit: REUTERS/DANIEL BECERRIL

Mexican national oil company Pemex posted a narrower loss for the second quarter even as crude prices fell, though the firm's financial debt rose, according to a filing with the Mexican stock exchange on Tuesday.

Adds details from report on debt, output, and discrepancy with 2019 report

MEXICO CITY, July 28 (Reuters) - Mexican national oil company Pemex posted a narrower loss for the second quarter even as crude prices fell, though the firm's financial debt rose, according to a filing with the Mexican stock exchange on Tuesday.

The Mexican oil giant's 44.3 billion peso ($1.9 billion) net loss during the April-to-June period was more than 16% lower than the 52.8 billion pesos Pemex lost in the same period last year, the company said in its filing.

The company appeared to have revised its 2019 second quarter loss, which it previously reported at 163 billion pesos.

Pemex's tax bill dipped 77% quarter on quarter, the firm said.

While production of crude oil and condensates was flat at 1.673 million barrels per day (bpd), prices for Mexico's crude export mix averaged about $24 per barrel during the quarter, or about 60% less than during the same period in 2019.

During the second quarter, Pemex's financial debt rose nearly $2.4 billion to reach $107.2 billion, one of the largest debt loads of any oil company in the world.

The state-owned firm is struggling with a battered credit rating and a 15-year streak of declining crude output that President Andres Manuel Lopez Obrador has pledged to reverse.

In the first quarter, Pemex posted a nearly $24 billion (562 billion peso) loss on massive foreign exchange losses as well as falling oil prices and demand due to the coronavirus pandemic.

On paper, the first quarter loss was one of the worst corporate earnings reports in history, but it mostly reflected accounting of a beat-up peso rather than hemorrhaging actual cash.

($1= 22.9570 pesos at end-June)

(Reporting by David Alire Garcia and Adriana Barrera Editing by Dave Graham)

((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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