Monday, July 13, 2020

Andres Manuel Lopez Obrador News

Pemex Trading Arm Mulls Canceling May-June Cargos

© Vladimir / Adobe Stock

The trading arm of Mexican state oil company Pemex is mulling options to slash the number of fuel cargoes the country imports in May and June as demand plummets because of the coronavirus, three sources close to the talks told Reuters.Pemex last week declared force majeure over fuel supplies from its trading arm PMI Comercio Internacional after a bottleneck of more than 60 vessels built up outside Mexican ports, waiting to discharge.But…

Mexico's Pemex to Receive $313 mln in Hedge Payouts

© Esteban / Adobe Stock

Mexican state oil company Petroleos Mexicanos (Pemex) expects this year to receive some $313 million from oil and financial firms involved in its annual oil hedging program, Chief Executive Octavio Romero said on Wednesday.Pemex's hedge, which this year covers about a quarter of its gross exports volume, protects the company from price variations and helps it to cover production costs.A larger hedging program contracted by the…

OPEC, Russia Approve Biggest-Ever Oil Cut to Support Prices

OPEC and allies led by Russia agreed on Sunday to a record cut in output to prop up oil prices amid the coronavirus pandemic in an unprecedented deal with fellow oil nations, including the United States, that could curb global oil supply by 20%. Measures to slow the spread of the coronavirus have destroyed demand for fuel and driven down oil prices, straining budgets of oil producers and hammering the U.S. shale industry, which is more vulnerable to low prices due to its higher costs.

Mexico and Pemex Face Downgrade Risk

(Photo: Pemex)

Mexico threw troubled state oil company Pemex a lifeline in 2019 to stop $80 billion in bonds held by investors worldwide being labeled junk by credit rating agencies. Now, investors worry that the state itself is a risk for Pemex.Mexico's creditworthiness came under increasing scrutiny in 2019, with two rating agencies flipping their sovereign outlook for the country to negative and one downgrading its rating.Economic growth has ground to a halt during Mexico's first year under leftist President Andres Manuel Lopez Obrador…

Majors Press Mexico to Resume Oil Auctions

© Denys / Adobe Stock

Big oil companies operating in Mexico have launched a drive to convince leftist President Andres Manuel Lopez Obrador to resume auctions of oil and gas contracts he has branded a failure in reviving the industry.Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell Plc, among other firms in Mexico's Association of Hydrocarbon Companies (Amexhi), say they have met output targets and investment pledges worth hundreds of millions of dollars in the initial phases of their contracts."We've been complying (with contractual obligations)…

Oil Companies Swap Stakes in Mexico

© somartin / Adobe Stock

With Mexico's government insisting that energy companies increase oil and gas output before it auctions off more of the country's vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for…

Mexico to Build Pipeline From Port of Tuxpan to Yucatan Peninsula

© CeHa / Adobe Stock

Mexico will soon launch a tender for the construction of a pipeline to bring natural gas from the eastern port of Tuxpan to the cities of Merida and Cancun in the Yucatan peninsula, President Andres Manuel Lopez Obrador said on Wednesday.Speaking at a regular news conference, Lopez Obrador said the infrastructure would boost power generation and prevent outages in the region, which is popular with tourists. (Reporting by Abraham Gonzalez Editing by Dave Graham)

Pemex Posts $4.4 Bln Loss

Pemex CEO Octavio Romero Oropeza (Photo: Pemex)

Slumping revenues pushed Mexico's Petroleos Mexicanos to a net loss of 87.4 bln pesos ($4.43 billion) in the third quarter, but the struggling state oil firm said on Monday it had cut back its hefty debt load, bucking the trend of recent years.Pemex, as the company is generally known, held financial debts of $106 billion at the end of 2018, and it has been under intense pressure from international credit rating agencies to get…

Pemex Prepays $5.17 Billion in Bond Tender

Pemex CEO Octavio Romero Oropeza (Photo: Pemex)

Mexico's Pemex said on Monday it had paid $5.17 billion in a tender offer to prepay about a third of its bonds maturing between 2020-23, part of President Andres Manuel Lopez Obrador's latest effort to shore up the state oil firm.The company announced the bond tender earlier this month, using a $5 billion capital injection from the Mexican government.In addition, Pemex said it had paid a total of $34.066 million in accrued and unpaid interest on the bonds.In a separate statement…

Mexico Gives Pemex $5 Bln to Pay Debt

(File photo: Pemex)

Mexico's government will give state-owned Pemex $5 billion so the world's most indebted oil company can pay off bonds, part of a plan to shore up accounts that also includes refinancing other bonds, the company said on Wednesday.Pemex, burdened by some $104 billion of debt, has a credit profile rated junk by Fitch and risks a downgrade by Moody's in coming months that would require many institutional investors to sell off billions…

Mexico's Pemex Narrows Loss

Mexican state oil company Pemex reported a narrower loss of 52.7 billion pesos ($2.7 billion) in the second quarter on Friday, as the heavily indebted firm faces the prospect of a fresh downgrade from credit rating agencies critical of its direction.The loss was nearly 70% lower than what the company, formally known as Petroleos Mexicanos, reported in the second quarter last year, when it lost 163.2 billion pesos.During the April to June period…

Mexico Unveils Pemex Business Plan

(Photo: Pemex)

Mexico on Tuesday unveiled parts of a keenly awaited business plan meant to bring the world's most indebted oil company back from the abyss, but its vow of $7.2 billion in government support failed to dispel worries of a ratings downgrade.Octavio Romero, CEO of Petroleos Mexicanos, or Pemex , presented the broad outlines of the 200-page plan at a news conference, saying a complete version would be published later on Tuesday.Romero…

Pemex Promised $7.3 Billion in Tax Relief

Pemex President Octavio Romero Oropezawith Mexico President Andrés Manuel López Obrador (Photo: Pemex)

Mexico's government aims to give $7.3 billion in tax relief to heavily indebted state oil company Pemex, according to a document seen by Reuters on Thursday, in an effort to cool fears over its financial viability and the impact on the wider economy.Pemex, burdened by $106 billion of financial debt, is teetering on the brink of losing its investment-grade rating.That scenario could be disastrous for Pemex as investors whose mandates…

Pemex Swings to Q1 Loss

(Photo: Pemex)

Petroleos Mexicanos swung to a 35.7 billion peso ($1.84 billion) net loss during the first quarter as revenues and crude output at the heavily-indebted Mexican state oil company fell, results posted to the stock exchange showed on Tuesday.Revenues at Pemex were 356.3 billion pesos during the January-March period, down 10.4 percent from 397.4 billion pesos in the same period in 2018, the results showed.Pemex, which President Andres Manuel Lopez Obrador has pledged to revive after years of decline…

Pemex's Oil Exports Tumble

Pemex's oil exports dropped by 11% in April compared to the previous month, while production slipped by 0.9%, data from the Mexican state oil firm showed on Friday.Exports of Maya crude, the only type Pemex has been selling abroad for almost a year, fell to 1.023 million barrels per day (bpd) in April from 1.150 million bpd in March, the data showed. Crude output dipped to 1.675 million bpd from 1.691 million bpd.Pemex has been struggling to cope with financial debts of some $106 billion and years of dwindling output.

S&P Downgrades Pemex

(Photo: Pemex)

Ratings agency Standard & Poor's on Monday slashed the stand-alone credit profile of Petroleos Mexicanos (Pemex) to 'B-' from 'BB-', piling pressure on the Mexican government to tighten up the debt-laden state oil firm's finances.S&P cut Pemex's outlook to negative from stable, just as it did for the Mexican government on Friday after the market closed. The agency kept Pemex's global investment grade rating at 'BBB+', in line with the government.The peso currency was slightly weaker on Monday after the S&P moves…

Pemex Steering Clear of Deepwater

© Denys / Adobe Stock

Petroleos Mexicanos will focus on shallow water projects and onshore plays, and avoid investing in its deepwater riches for now, as the ailing Mexican state-run oil company seeks to turn around a 14-year slide in crude production, a top official said on Thursday.Chief Financial Officer Alberto Velazquez outlined the approach the state-owned oil company known as Pemex will take at a conference in the colonial city of Leon on Thursday.He…

Fitch Downgrades Pemex Debt to 'Junk'

Pemex CEO  Octavio Romero Oropeza (Photo: Pemex)

Fitch on Thursday became the first major ratings agency to downgrade the debt of Mexican oil company Pemex to "junk" status, in a major setback for President Andres Manuel Lopez Obrador's plans to revive the struggling state-run firm.Fitch changed Pemex's credit rating from investment grade to speculative grade, or "junk", with a negative outlook, a day after it downgraded Mexico's sovereign debt, a decision criticized by the Mexican finance ministry.The new rating for Pemex is BB+ and that of Mexico's sovereign debt BBB.A second

Mexico to Invite 4 Firms to Bid on Pemex Oil Refinery

The Mexican government will invite four companies to bid in a restricted tender for work building the new Dos Bocas refinery for state oil company Pemex, Energy Minister Rocio Nahle said at a news conference on Monday.Dos Bocas would be Pemex's seventh domestic refinery and is intended to help wean Mexico off growing fuel imports, a major campaign promise of President Andres Manuel Lopez Obrador, who took office in December.Nahle said that the refinery…

Mexico Could Pay Pemex Debt from Stabilization Fund

© Lukasz Z / Adobe Stock

Mexico's deputy finance minister said on Thursday the government was considering using part of a $15.4 billion public income stabilization fund to pay some debt obligations for heavily leveraged state oil company Pemex.The finance ministry is working on a new design for the fund to make it counter cyclical, deputy minister Arturo Herrera said in an interview with TV network ADN40, during a banking conference in Acapulco.Grappling with Pemex's financial health has been a key challenge for President Andres Manuel Lopez Obrador…