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Mexico: $ 23 billion in losses in 2020 for Pemex

2021-02-26T22:10:35.753Z

Pemex, the Mexican state-owned oil company, recorded net losses of nearly $ 23 billion in 2020, she said on Friday. Read also: Mexico: Pemex posts a profit of 64 million dollars in the 3rd quarter These losses of 481 billion pesos ($ 22.976 billion) are 38% higher than those recorded in 2019 ($ 16.588 billion), according to the company's statement which indicates that its sales collapsed by 32%.



Pemex, the Mexican state-owned oil company, recorded net losses of nearly $ 23 billion in 2020, she said on Friday.

Read also: Mexico: Pemex posts a profit of 64 million dollars in the 3rd quarter

These losses of 481 billion pesos ($ 22.976 billion) are 38% higher than those recorded in 2019 ($ 16.588 billion), according to the company's statement which indicates that its sales collapsed by 32%.

"The unprecedented combination of low prices for crude oil and petroleum products"

has added to

"a very sharp drop in fuel consumption which has eroded the cash flow of all oil companies,"

the company analyzes.

The company's short-term debt also rose 13.9% from the end of 2019 to reach $ 113.2 billion at the end of December.

The government of left-wing President Andres Manuel Lopez Obrador, in power since 2018, has already injected some $ 10 billion to try to ease the finances of the company, which he sees as a bulwark for national sovereignty.

The rating agencies Fitch and Moody's recently downgraded the company's credit rating, placing it as a speculative investment, citing its vulnerability in a context of low oil prices and its need for increased public support.

Increase investments

Pemex estimates that it needs to increase its investments to reverse the prolonged downward trend in its production, which fell from 3.4 million barrels per day in 2004 to 1.7 million barrels in 2021. On October 5, the Mexican government announced a $ 14 billion public-private investment plan in infrastructure projects to revive the pandemic-stricken economy.

Almost a third of this investment will be devoted to the rehabilitation of Pemex facilities.

Source: lefigaro

All business articles on 2021-02-26

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