On Friday, Mexican state oil company Pemex reported its third-quarter net loss narrowed to $2.58 billion (52.0 billion pesos), but said it had suffered from increased sales costs as well as currency exchange losses as the peso weakened against the dollar.
The results contrasted sharply with international oil majors like Exxon Mobil and Chevron, which posted blockbuster profits during the same period at a time of high crude prices.
Pemex, officially known as Petroleos Mexicanos, saw revenue grow to 602 billion pesos in the July-to-September period, helped by an increase in domestic fuel sales and crude exports plus higher oil prices were up around 29% compared to the year-ago period.
Its year-earlier net loss totaled 77.2 billion pesos.
The Mexican oil giant’s financial debt stood at $105 billion during the quarter, down about 3% from $108 billion a year earlier.
Crude oil output rose slightly to an average of 1.764 million barrels per day (bpd) in the quarter.
In a filing with the Mexican stock exchange, Pemex noted currency exchange losses for the quarter totaling 9.3 billion pesos, as the peso weakened 1.6% against the dollar. Still, the company stressed this did not represent a significant hit to cash flow.
President Andres Manuel Lopez Obrador has pumped billions of dollars to support the company to fulfill his pledge of growing domestic production of motor fuels by refining more of Pemex’s crude oil production at home during his term.
On a call with analysts shortly after the results, Pemex’s Chief Financial Officer Carlos Cortes hailed progress on growing domestic refining and fuel sales.
“Pemex has been replenishing its participation in the national fuel market,” he said, noting that during the third quarter domestic fuel sales grew by nearly 70% year on year.
Source: El Financiero