Pemex posts loss of US $18 billion in 2019, nearly double that of prior year

February 27, 2020

The state oil company Pemex reported a loss of nearly US $18 billion in 2019, almost twice as much as the loss of $9.2 billion in 2018.

The company reported that its domestic revenues fell 17.5%, while its export revenues fell 15.3%. It cited both the drop in per-barrel price — from $62.29 in 2018 to $55.60 in 2019 — as well as a 5.8% decrease in domestic sales as reasons for the decline in revenues.

Pemex invested $10.3 billion last year, primarily in exploration and production, but also in industrial upgrades, logistics, drilling and other services.

In the last quarter of 2019, Pemex’s monthly production rose only 0.04%, while investment in exploration and production rose 13.6%. On a more positive note, fuel theft fell from 56,000 barrels per day to 5,000.

The prices of most Pemex foreign currency bonds worsened the picture after the oil company reported multimillion-dollar corporate losses in 2019 and a global wave of risk aversion shook the firm last week.

Specialists said that wariness of the company’s securities on the part of investors is due among other reasons to the rapid worldwide spread of the new coronavirus, which is keeping global markets in check under the threat of its impact on the performance of the world economy.

“Basically, we’re seeing the ravages of [the financial effects] of the coronavirus, but now with these results, the reduction of Pemex stock is imminent,” said one debt market operator.