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Mexicos Pemex reports $6.17 bln net profit in first quarter – Reuters

Vehicles are seen next to fuel pumps at company Petroleos Mexicanos (PEMEX) in a service station after Mexico suspended a week of gasoline subsidy along the U.S. border, in Ciudad Juarez, Mexico April 2, 2022. REUTERS/Jose Luis Gonzalez

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MEXICO CITY, May 2 (Reuters) – Mexican national oil company Pemex (PEMX.UL) on Monday reported a $6.17 billion first-quarter net profit, up from a nearly $2 billion loss in the year-ago period, driven in part by foreign exchange gains and growing output.

Total financial debt edged down slightly to $108.1 billion, due to heavy support from the Mexican government and the company’s debt management operations.

Total financial debt stood at some $109 billion at the end of 2021.

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The Mexican oil giant said it had received 45.4 billion pesos ($2.3 billion) from the government to repay debt during the first three months of the year.

Revenue surged 59.6% in the first three months of 2022, boosted by a jump in sales and a recovery in oil prices.

Crude oil and condensate production grew 2.3% from the previous year, according to a presentation shared by the company, powered by 355,000 barrels per day (bpd) in output from new priority fields.

President Andres Manuel Lopez Obrador has pumped billions of dollars into Petroleos Mexicanos, as the company is formally known,in an effort to prioritize its health and achieve energy self-sufficiency during his term.

According to the company’s previous quarterly report, Pemex also significantly revised upward its fourth-quarter losses from last year, to around 194 billion pesos versus the 124 billion pesos that the company posted in late February, a difference of more than $3 billion in additional red ink.

Reuters reported late last week that Pemex’s Olmeca refinery, which is under construction and a top priority for Lopez Obrador, is running some $5 billion over budget. read more

In April, Mexico’s finance minister reiterated that the government was ready to make Pemex debt repayments whenever necessary, as higher oil prices have greatly improved cash flow. read more

($1 = 19.8911 pesos at end-March)

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Reporting by Valentine Hilaire and Noe Torres; Editing by David Alire Garcia, Richard Chang and Paul Simao

Our Standards: The Thomson Reuters Trust Principles.