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Mexico's Pemex to focus on refinancing regular debt payments

Credit: REUTERS/DANIEL BECERRIL

Mexican national oil company Petroleos Mexicanos (Pemex) said on Tuesday it will focus on refinancing the firm's amortization payments while it seeks to maintain its policy of no new net debt through 2024.

Adds company and government details

MEXICO CITY, March 23 (Reuters) - Mexican national oil company Petroleos Mexicanos (Pemex) said on Tuesday it will focus on refinancing the firm's amortization payments while it seeks to maintain its policy of no new net debt through 2024.

Pemex, the world's most indebted oil company, said in a statement it will seek to keep up a regular presence in U.S. dollar and euro debt markets in 2021.

This year's financing requirements have risen to 221.9 billion pesos ($10.7 billion), stemming from its financial deficit of 92.7 billion pesos and so-called debt amortization payments of 129.3 billion pesos, Pemex said.

The company said it will continue to carry out refinancing via bank credits, capital debt markets and export credit agencies, and will also continue the push to diversify the currencies it uses.

Around 82% of Pemex's outstanding debt is dollar- or euro-denominated.

Last week, President Andres Manuel Lopez Obrador said the government would pick up Pemex's debt amortization payments this year, totaling over $6 billion, in the latest round of help he has authorized for the struggling firm's balance sheet.

Over the past couple of years, Lopez Obrador's administration has provided Pemex with capital injections and a scaled-down tax bill in a bid to improve its finances.

At the end of last year, the company's financial debt totaled $113.2 billion.

($1 = 20.7466 Mexican pesos)

(Reporting by Ana Isabel Martinez in Mexico City Editing by Chris Reese and Matthew Lewis)

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

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