News Column

Mexico's Pemex posts sharply higher 1st-half net loss

July 25, 2014



Mexico City, Jul 25 (EFE).- Mexican state-owned oil company Petroleos Mexicanos on Friday reported a net loss of $6.77 billion for the first half of 2014, up 65.3 percent from the same period of last year.

The company attributed the result to lower production and a heavier tax burden.

An additional negative factor was an 8 percent increase in the cost of sales, which climbed from 388.15 billion pesos ($29.85 billion) in the first half of 2013 to 419 billion pesos ($32.15 billion) in the first six months of this year, Pemex said.

Pemex's total sales, meanwhile, rose to 816 billion pesos ($62.77 billion), up 3.4 percent from the first half of last year.

Gross income - total sales minus cost of sales - amounted to 396.98 billion pesos ($30.46 billion), while operating income came in at 352.26 billion pesos ($27 billion).

The company said its income before taxes totaled 339.78 billion pesos ($26.07 billion) in the first half, down 10.4 percent from January-June 2013.

Pemex's liabilities, which include short- and long-term debt, taxes and duties payable and employee benefits, amounted to 2.32 trillion pesos ($178.03 billion) at the end of June.

The company said hydrocarbon exports totaled $26 billion in the year's first six months, virtually unchanged from the first half of 2013.

But crude production fell to an average of 2.47 million barrels per day in the second quarter, down 1.9 percent from the same period of last year, due to a 5.9 percent drop in production at the once-giant Cantarell and other fields.

Pemex will become a "state productive enterprise" under Mexico's recent energy-sector overhaul, which ended the company's seven-decade monopoly on the domestic oil industry and opens the sector to private capital.

The process of securing congressional approval for the overhaul's secondary laws is nearly complete and is expected to conclude in August.

Mexico's crude production has fallen by nearly a quarter from a high of 3.3 million barrels per day in 2004 due to a sharp drop in output at offshore Cantarell, formerly Mexico's most productive field, and a lack of investment.

The historic energy overhaul, enacted last year, is aimed at reversing that decline by allowing private companies to develop crude reserves for the first time since 1938.

Supporters of the overhaul argued that the participation of major multinational energy companies under profit- and production-sharing contracts and licenses is needed to develop promising deep-water reserves in the Gulf of Mexico. EFE

jrm/mc


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Source: EFE Ingles


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