5/1/2019 – Financial Times
By Jude Webber
Mexico’s cash-strapped state oil company Pemex swung into a 36bn peso ($1.9bn) loss in the first quarter but said things were moving steadily in the right direction and highlighted a sharp drop in fuel theft — a major cash drain.
The first-quarter loss compares to the 113bn peso profit recorded in the year ago period. However it was much smaller than the 157.3bn peso loss posted in the fourth quarter, reflecting the positive impact of a 121bn peso foreign exchange profit and the company’s new strategies, officials said.
Furthermore, they said the 15-year freefall in crude production was being controlled. Mexico’s total crude production in the quarter averaged 1.69m barrels per day, of which Pemex produced 1.661m and commercial partners produced 29,000, Alberto Velázquez, chief financial officer said in a conference call with analysts. The production goal for 2019 is 1.725m bpd.
“We have made improvements, although gradual ones. We have advanced in all areas. The challenges will require time to resolve but the trend is clear . . . Pemex is moving in the right direction,” Mr Velázquez said. The company expects to finish its long-awaited business plan by the end of June and to start bringing 20 new fields onstream by year-end.