Latest news with #Pemex
Yahoo
2 days ago
- Business
- Yahoo
Mexico raises $12bn through debt offering to aid state oil company Pemex
Mexico has reportedly placed $12bn (224.29bn pesos) in a debt offering aimed at supporting Petroleos Mexicanos (Pemex), the country's state oil producer, according to a Reuters report, citing the country's Finance Ministry. The Finance Ministry announced the move, which involved pre-capitalised securities, or P-Caps, to address Pemex's financial obligations and upcoming debt payments for 2025 and 2026. The demand for the dollar-denominated securities was robust, with total interest reaching $23.4bn, which allowed Mexico to exceed its initial $10bn target. President Claudia Sheinbaum's administration is committed to bolstering Pemex's financial situation, as the company is burdened with substantial debts to suppliers and creditors, amounting to $98.8bn in financial debt and $22.79bn owed to providers by the end of the second quarter. To achieve a production goal of 1.8 million barrels per day, Pemex executives have acknowledged the necessity for mixed contracts with private companies and ongoing government support. Earlier in March, Pemex reportedly sought financing from businessman Carlos Slim to fund development projects in two significant oil and natural gas fields. Negotiations are under way for a joint operating agreement in the Zama offshore field. Slim who is also considering a stake in the Ixachi onshore natural gas field, is potentially providing the investment needed for Pemex's share. Additionally, Pemex is planning a corporate restructuring to cut costs and enhance efficiency. The strategy includes eliminating 3,114 tenured positions, approximately 28% of its operational personnel budget for the year, according to the company's documents. This proposal is expected to save around 10.5bn pesos, contributing to the company's efforts to stabilise its finances and increase oil production. "Mexico raises $12bn through debt offering to aid state oil company Pemex" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
2 days ago
- Business
- Reuters
Mexico exports 39% less crude oil in June, lowest level in decades
MEXICO CITY, July 29 (Reuters) - Mexican state company Pemex exported 39% less crude oil year-over-year in June, reaching the lowest level in decades, official data showed, as processing at local refineries and fuel production increased significantly. It exported 458,103 barrels per day (bpd) in June, compared to 753,539 bpd in the same month a year earlier, company data updated late on Monday showed. This was the lowest level since records started in 1990. In May, Pemex's international trading arm, PMI, forecast that the company would export less this year because more would be sent to local refineries, including to its new Olmeca refinery in the port of Dos Bocas. Pemex gave no explanation for the decline. However, in its quarterly earnings report on Monday it said it imported less gasoline and diesel because more was being refined locally. In June, it imported 475,047 bpd of refined products, a 38% year-over-year decrease. Pemex, which owes about $120 billion to both investors and suppliers, has also struggled with a sharp decline in production. Its seven local refineries processed 1.12 million bpd, helped by the new Olmeca refinery, which took in 191,585 bpd. In recent years, the Mexican government has sought to achieve what it calls "energy sovereignty" by drastically reducing exports of crude oil and refining it locally. Pemex executives reiterated to investors after the quarterly earnings report that the company was working towards achieving its production goal of 1.8 million bpd. Mexico is still far from reaching this goal. Production of crude oil and condensate has been declining, hovering around 1.6 million bpd. The government and Pemex executives have said that production will rebound with the help of partnerships with private companies, but have not shared details.
Reuters
3 days ago
- Business
- Reuters
Mexico's Pemex swings to net profit, helped by peso recovery
MEXICO CITY, July 28 (Reuters) - Mexican state energy company Pemex on Monday reported a net profit of 59.52 billion pesos ($3.17 billion) for the second quarter of this year, helped largely by a more favorable exchange rate. Like most of its Latin American peers, Pemex is essentially a dollar-denominated state company, including for the vast majority of its spending and revenue. In the second quarter of last year, Pemex made a net loss of 273.33 billion pesos after the Mexican peso lost value against the dollar. The company also reported a 43.3 billion peso net loss in the first quarter of this year. In a stock exchange filing, Pemex also reported that revenues fell 4.4% during the second quarter of this year to 391.62 billion pesos, which it attributed to lower crude oil sales and lower prices for petroleum products like gasoline and diesel. Earnings before interest, taxes, depreciation and amortization (EBITDA) were 76 billion pesos for the quarter. The world's most indebted energy company, Pemex reported a financial debt of $98.8 billion at the end of the quarter and that it owes providers $22.79 billion. One of Mexico's largest companies and contributors to state coffers, Pemex received 94 billion pesos in government support and paid providers more than 230 billion pesos. Crude oil and condensate production with partners for the quarter averaged 1.64 million barrels per day while natural gas production averaged 3.59 billion cubic feet per day. Company executives told investors in a call after the quarterly results were published that Pemex was still seeking to increase crude oil production to the government goal of 1.8 million barrels per day. To do so, the company would rely on so-called mixed contracts that would be offered to private companies, as well as on continued government support, the executives said. In recent years, production has declined rapidly, especially in the Gulf of Mexico. ($1 = 18.7654 Mexican pesos at end-June)
Yahoo
3 days ago
- Business
- Yahoo
Mexico Launches $12 Billion Debt Offering to Support Pemex
(Bloomberg) -- Mexico kicked off a $12 billion debt offering that will raise money to support state-owned Petroleos Mexicanos, the world's most indebted oil major. Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy The offering, which is expected to price Monday, will consist of dollar-denominated debt maturing August 2030, according to a person familiar with the matter. The deal launched at about 170 basis points over Treasuries, down from initial price talk of 200 basis points, added the person, who requested anonymity because the information is private. The deal will be in the form of pre-capitalized securities, or P-Caps, a type of instrument used in asset-backed finance that will allow Mexico to borrow billions of dollars from debt investors to support Pemex while keeping the obligations off its books. Bloomberg News reported last week that Mexico was looking to raise as much as $10 billion with the transaction — part of a plan by President Claudia Sheinbaum's administration to shore up the struggling state oil producer, which has a debt load of almost $100 billion, according to the company's results released Monday. Pemex posted a net income of 59.52 billion pesos ($3.2 billion) for the second quarter, the first profit in more than a year. The company was boosted by currency moves as the peso straightened amid a rally in risk assets, and also benefited from a decrease in the cost of sales. P-Caps Mexico, through an entity named Eagle Funding LuxCo., will sell the so-called P-Caps and use the proceeds of the sale to buy a portfolio of US government debt including Treasuries, according to a filing last week. Pemex will then take that portfolio and use it as collateral for loans through the repurchase market, using the proceeds as it sees fit, according to an offering memorandum seen by Bloomberg. If Pemex isn't able to pay back the loans, the banks will seize the collateral and end up whole. In that scenario, the investors in P-Caps would lose their collateral, and end up with sovereign debt from Mexico, according to a presentation seen by Bloomberg. Fitch Ratings placed Pemex on Ratings Watch Positive on July 22, saying that if successful, the transaction will improve the Mexican government's track record of support for the company. The reassessment may result in a multiple notch upgrade for the driller into the BB category, Fitch said. --With assistance from Vinícius Andrade and Michael Gambale. (Updates with launch details in first and second paragraphs) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of an American Who Helped North Korea's Wild Remote Worker Scheme Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Mexico Kicks Off Debt Offering to Support Pemex
(Bloomberg) -- Mexico kicked off a debt offering that will raise money to support state-owned Petroleos Mexicanos, the world's most indebted oil major. Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy The offering, which is expected to price Monday, will consist of dollar-denominated debt maturing August 2030, according to a person familiar with the matter. Pricing guidance is about 175 basis points over Treasuries, down from initial price talk of 200 basis points, added the person, who requested anonymity because the information is private. The deal will be in the form of pre-capitalized securities, or P-Caps, a type of instrument used in asset-backed finance that will allow Mexico to borrow billions of dollars from debt investors to support Pemex while keeping the obligations off its books. Bloomberg News reported last week that Mexico was looking to raise as much as $10 billion with the transaction — part of a plan by President Claudia Sheinbaum's administration to shore up the struggling state oil producer, which has a debt load of almost $100 billion, according to the company's results released Monday. Pemex posted a net income of 59.52 billion pesos ($3.2 billion) for the second quarter, the first profit in more than a year. The company was boosted by currency moves as the peso straightened amid a rally in risk assets, and also benefited from a decrease in the cost of sales. P-Caps Mexico, through an entity named Eagle Funding LuxCo., will sell the so-called P-Caps and use the proceeds of the sale to buy a portfolio of US government debt including Treasuries, according to a filing last week. Pemex will then take that portfolio and use it as collateral for loans through the repurchase market, using the proceeds as it sees fit, according to an offering memorandum seen by Bloomberg. If Pemex isn't able to pay back the loans, the banks will seize the collateral and end up whole. In that scenario, the investors in P-Caps would lose their collateral, and end up with sovereign debt from Mexico, according to a presentation seen by Bloomberg. Fitch Ratings placed Pemex on Ratings Watch Positive on July 22, saying that if successful, the transaction will improve the Mexican government's track record of support for the company. The reassessment may result in a multiple notch upgrade for the driller into the BB category, Fitch said. --With assistance from Vinícius Andrade and Michael Gambale. (Updates with guidance in second paragraph and company's latest results starting in fourth paragraph) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P.
