Pemex shrinks vehicle leasing bill amid cost-cutting drive

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Thursday, December 1, 2016

Cash-strapped Mexican NOC Pemex said it will save about US$100mn by executing a revised vehicle leasing plan.

The company, which originally planned to acquire 4,700 vehicles, has instead opted for 2,000 as it tightens its belt to help mitigate the impact of low oil prices on revenues.

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The move will "permit the company to continue strengthening its financial position and to keep its different areas operating," Pemex said in a statement.

Pemex, on a companywide cost-cutting drive, said it will save almost 575mn pesos (US$27.7mn) a year over the next four years as a result of the modified leasing plan.

The contract was awarded, following a tendering process held via the company's digital procurement platform, to Jet Van Car Rental, for a sum of 948mn pesos, and Integra Arrenda, for 789mn pesos.

Pemex reported a net loss of 118bn pesos for the third quarter, compared with a 168bn-peso net loss for 3Q15, as crude oil production fell 5.7% and overall sales dropped 12.4%.

Pemex suffered a budget cut this year and last year, and will see its expenditure trimmed by US$5.2bn in 2017.