Pemex trims losses in Q3 as oil, gas output decline

Friday, October 27, 2017

Mexico's state oil firm Pemex posted a 101.8bn (US$5.31bn) net loss in third quarter, a 14% improvement on its 3Q16 loss, but reported an 18.9bn-peso (US$992mn) net profit to September.

Total financial debt decreased by 2.8% compared with 3Q16, mainly due to the appreciation of the Mexican peso against the US dollar, resulting in a total debt of 1.92tn pesos (US$106bn).

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There are some external factors that continue to impact Pemex's financial results: depreciation of the Mexican peso against the US dollar, recognition of logistic expenses in the prices of fuels, recovery of crude oil international prices and gradual liberalization of gasoline and diesel prices.

Crude oil production during Q3 was in line with the annual goal of 1.94Mb/d, averaging 1.88Mb/d, down by 255,000b/d on 3Q16, and crude oil processing was affected due to various natural phenomena and averaged 647,000b/d.

Notwithstanding, accumulated production from January to September 2017 was 1.97Mb/d, above the annual production target.

Natural gas production decreased by 14.2% year-on-year to 4.09Bf3/d during the quarter.

During Q3, the average number of operating wells totaled 7,930, a 6.9% decrease on 3Q16, as a result of lower activity due to the strategy aimed at increasing economic value, and due to the natural decline of some fields

As a result of the exploratory activities carried out during the third quarter of 2017, the following discoveries were made: Valeriana-1 onshore well of the Comalcalco project, which revealed positive results in the production of condensates and gas; The Octli-1 and Xikin-1DL wells of the Uchukil project, and Hok-1 of the Chalabil project, which turned out to be potential oil and gas producers in shallow waters; and the Cahua-1 shallow water well, which revealed positive results regarding condensates and gas, and is part of the Uchukil project.

During Q3, total sales increased by 20.5% agains 3Q16, while investment totaled 145.2bn pesos, which represents 70.9% of the total investment budget of 204.6bn pesos programmed for the year.