MEXICO CITY (Reuters) -Mexican state energy company Pemex on Monday reported a net profit of 59.52 billion pesos ($3.17 billion) for the second quarter of this year, helped largely by a more favorable exchange rate. Like most of its Latin American peers, Pemex is essentially a dollar-denominated state company, including for the vast majority of […]
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Mexico’s Pemex swings to net profit, helped by peso recovery
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MEXICO CITY (Reuters) -Mexican state energy company Pemex on Monday reported a net profit of 59.52 billion pesos ($3.17 billion) for the second quarter of this year, helped largely by a more favorable exchange rate.
Like most of its Latin American peers, Pemex is essentially a dollar-denominated state company, including for the vast majority of its spending and revenue.
In the second quarter of last year, Pemex made a net loss of 273.33 billion pesos after the Mexican peso lost value against the dollar. The company also reported a 43.3 billion peso net loss in the first quarter of this year.
In a stock exchange filing, Pemex also reported that revenues fell 4.4% during the second quarter of this year to 391.62 billion pesos, which it attributed to lower crude oil sales and lower prices for petroleum products like gasoline and diesel.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were 76 billion pesos for the quarter.
The world’s most indebted energy company, Pemex reported a financial debt of $98.8 billion at the end of the quarter and that it owes providers $22.79 billion.
One of Mexico’s largest companies and contributors to state coffers, Pemex received 94 billion pesos in government support and paid providers more than 230 billion pesos.
Crude oil and condensate production with partners for the quarter averaged 1.64 million barrels per day while natural gas production averaged 3.59 billion cubic feet per day.
Company executives told investors in a call after the quarterly results were published that Pemex was still seeking to increase crude oil production to the government goal of 1.8 million barrels per day.
To do so, the company would rely on so-called mixed contracts that would be offered to private companies, as well as on continued government support, the executives said.
In recent years, production has declined rapidly, especially in the Gulf of Mexico.
($1 = 18.7654 Mexican pesos at end-June)
(Reporting by Ana Isabel Martinez, Adriana Barrera, Brendan O’Boyle and Noe Torres; Writing by Stefanie Eschenbacher; Editing by Susan Fenton)