Pemex 2018 investment budget tops US$11bn

Mexican state oil company Pemex's estimated investment budget for this year reaches 204.6bn pesos (US$11bn), the same as in 2017.

Exploration and production will account for 82.3% followed by industrial transformation 10.5%, corporate 2.64%, logistics 2.15%, ethylene 0.88% and fertilizers 0.2%, the NOC said in its fourth quarter results report.

Last year, the energy giant invested 191bn pesos or 93.4% of the scheduled amount, 67.4% of which went to production. Exploration followed with 17.7%, industrial transformation 9.73%, logistics 2.56%, drilling and services 1.31%, corporate 0.84%, ethylene 0.31% and fertilizers 0.16%.

Pemex's total hydrocarbons output last quarter slid 10.1% to 2.60Mboe/d compared with 4Q16 which the company attributed to natural declines of certain producing assets.

The company's average number of operating wells and wells completed were 7,845 and 21 compared with 8,351 and 25 a year before.

FINANCIALS

The company posted a net loss of 352bn pesos in 4Q17 versus a net profit of 72.7bn pesos a year earlier.

Last quarter's bottom line was impacted by a 731% jump in sales costs which Pemex attributed to a 120bn-peso impairment of fixed assets and a 28.0% or 33.2bn-peso increase in purchases for resale, primarily gasoline and diesel, to cover local demand.

The state operator's total sales grew 24% year-on-year to 402bn pesos, driven by 31% growth in exports to 160bn pesos and a 19% increase in domestic sales to 235bn pesos.

Pemex's Q4 results report is available here and the presentation at this link

For a look at Mexico's hydrocarbons development pipeline, go to the BNamericas Project Profiles Database which contains close to 200 projects in the early works stage, among them: