Mexican oil giant Pemex reports $6.5bn loss

GMT 18:39 2015 Thursday ,30 April

Arab Today, arab today Mexican oil giant Pemex reports $6.5bn loss

Mexican oil giant Pemex
Mexico City - AFP

Mexico's state oil giant Pemex reported losses Thursday of more than 100 billion pesos ($6.5 billion) in the first quarter of 2015, hit hard by the collapse in crude prices.

Pemex, the world's seventh-largest oil producer, has seen the export price of Mexican crude fall from $94.84 a year ago to $56.01 today, dragged down by a global supply glut that has sent world oil prices tumbling as much as 60 percent since June last year.

"The current price ranges could prevail for the next six or 18 months," the company's treasurer Rodolfo Campos told an investors conference.

He said the firm's exports were down $3.8 billion in the first quarter.

Production also fell from 2.36 million barrels a day in the fourth quarter of 2014 to 2.3 million, down from a peak of 3.4 million in 2004, said exploration and production director Gustavo Hernandez.

Pemex lost $17.7 billion last year and has been in the red since 2013.

It had announced in February it was slashing its budget by 11.5 percent, suspending some deep-water exploration and making major job cuts.

Pemex has wielded a monopoly over Mexico's oil since then president Lazaro Cardenas nationalized the sector in 1938.

It contributes more than a third of the government's tax revenues.

President Enrique Pena Nieto is seeking to breathe new life into the Mexican energy sector through reforms passed last year that include breaking up Pemex's decades-old monopoly, easing its tax burden and inviting foreign firms back into the country.

Arab Today, arab today
Arab Today, arab today
arabtoday arabtoday arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabs, Arab, Arab