Mexico's Pemex Swings to Net Profit, Helped by Peso Recovery

• Mexican state energy company Pemex on Monday reported a net profit of 59.52Bn pesos (US$3.17Bn) for the second quarter of this year, helped largely by a more favourable exchange rate. Like most of its Latin American peers, Pemex is essentially a dollar-denominated state-owned company, with the vast majority of its spending and revenue denominated in dollars.
• In the second quarter of last year, Pemex made a net loss of 273.33Bn pesos after the Mexican peso lost value against the dollar. The company also reported a net loss of 43.30Bn pesos 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 391.62Bn pesos, which is attributed to lower crude oil sales and lower prices for petroleum products like gasoline and diesel. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were 76.00Bn pesos for the quarter.
• The world's most indebted energy company, Pemex, reported a financial debt of $98.8Bn at the end of the quarter, and it owes providers $22.79Bn. As one of Mexico's largest companies and contributors to state coffers, Pemex received 94Bn pesos in government support and paid providers more than 230Bn pesos.
• Crude oil and condensate production with partners for the quarter averaged 1.64Mn barrels per day, while natural gas production averaged 3.59Bn 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's goal of 1.8Mn 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.

(Source: Reuters)