Business & Economy

Mexico’s Pemex posts $26.3 bn net loss for 1st 9 months of 2020

Mexico City, Oct 28 (efe-epa).- Mexican state oil company Petroleos Mexicanos said Wednesday it posted a $26.3 billion net loss between January and September, an increase of 243.1 percent relative to the same nine-month period of last year.

Pemex’s results improved, however, in the third quarter, with the company reporting net income of $61 million between July and September.

In presenting the company’s latest earnings report, CEO Octavio Romero Oropeza said the steep loss was due to sharply lower oil prices resulting from a coronavirus-triggered plunge in global crude demand.

The company said its total sales amounted to $30.7 billion in the first nine months of the year, down 34.9 percent from the same period of 2019.

Domestic sales suffered a particularly steep decline, falling 39.1 percent to $16.4 billion, while exports were down 28.9 percent to $14.1 billion.

Compared to the same period of 2019, Pemex reported a 0.5 percent increase in crude production to an average of 1.69 million barrels per day.

Pemex’s natural gas output, however, fell 0.6 percent to an average of 3.64 billion cubic feet per day.

The company’s gross income plummeted 53 percent to $5.9 billion, while its operating income fell a whopping 86.2 percent to $1.1 billion.

Pemex said its earnings before interest, taxes, depreciation and amortization (EBITDA) between January and September plunged 616.2 percent – compared to the same period of 2019 – to $20.9 billion.

Meanwhile, the company’s total liabilities (including short-term and long-term financial debt, taxes and duties payable and reserve for employee benefits) amounted to $193.2 billion at the end of September, up 13.4 percent from the close of 2019.

Pemex’s total financial debt – both short-term and long-term – has grown 24.9 percent thus far this year to $107.8 billion.

On the bright side, Pemex rebounded after two consecutive quarters of losses to post net income of $61 million between July and September.

That result compares to a net loss of 87.9 billion pesos (roughly $3.8 billion if the same exchange rate is used) in the third quarter of 2019.

Despite that figure, Pemex’s total sales in the third quarter fell 31.8 percent year-over-year to $10.4 billion; by category, domestic sales were down 40.8 percent and exports dropped 18.6 percent.

By contrast, Pemex earned $1.6 billion in foreign exchange profit, up 201 percent from the third quarter of 2019; and $761 million in income due to financial derivatives, 188.2 percent more than in the July-September period of 2019.

For the first half of 2020, Pemex posted a net loss of $26.4 billion, an increase of 585.3 percent from its $3.9 billion loss for the first half of last year.

Pemex posted a net loss of $18.4 billion for all of 2019, up 91.8 percent from its $9.6 percent net loss the previous year. EFE-EPA


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