Mexico’s Cemex eyes capital raise for new investment

02/08/2018 Reuters

CEMEX
Client: Cemex Location: Dominican Republic Operations Date: November 2007 Photo: Mark Green/mgp2.com

Mexican cement maker Cemex aims to raise capital for potential investments by issuing shares, it said on Thursday, adding that it does not anticipate making more divestments to reduce debt.

Cemex Chief Executive Fernando Gonzalez said in a conference call with analysts that the company would not use new capital to pay down debt.

The Monterrey-based company, which is fighting to regain its investment-grade credit rating, posted a fourth-quarter net loss of $105 million on Thursday.

In the fourth quarter it reduced its debt plus perpetual notes by $209 million to a level 13 percent lower than end-2016.

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Mexico January inflation cools less than expected from 16-1/2 year high

02/08/2018 Reuters

The Bank of Mexico logo is seen on the facade of an office building in downtown Mexico City
The Bank of Mexico logo is seen on the facade of an office building in downtown Mexico City, Mexico, June 22, 2017. REUTERS/Edgard Garrido

Mexican consumer prices cooled less than expected in January from a recent 16-1/2 year high, data showed Thursday, backing bets that the central bank will hike interest rates to contain worries inflation may not fade as forecast.

Consumer prices rose 5.55 percent MXCPIA=ECI in the year through January, the national statistics agency said. That was down from 6.77 percent in December, but above expectations of 5.51 percent in a Reuters poll.

The lower inflation reading is largely due to a statistical adjustment a year after Mexico raised fuel prices, and analysts still expect the Banco de Mexico to raise its benchmark interest rate by 25 basis points to 7.50 percent later on Thursday.

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Problems in the pipeline for Sempra’s subsidiary in Mexico

02/07/2018 San Diego Union-Tribune

pipelineAn indigenous group in a small town in Mexico has disrupted a pipeline project operated by a subsidiary of San Diego-based Sempra Energy by taking a chunk out of a natural gas line.

The disruption is one of a number of protests that have caused delays to energy projects in the country.

Four years ago, Mexican political leaders passed energy reform measures in an effort to dramatically improve the country’s power system. Only 7 percent of households in Mexico have access to natural gas.

Mexico will elect a new president in July and the front-runner has been a sharp critic of energy reform.

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Mexico protesters fear US-owned brewery will drain their land dry

02/06/2018 The Guardian

Migrant farmworkersCarmelo Gallegos used to sow wheat in the cool winters and cotton in scorching-hot summers of the Mexicali valley. These days, water is so scarce he can only plant one crop a year.

But on top of drought and a sinking water table, the 61-year old farmer now has another preoccupation. A huge brewery is being built in the nearby city of Mexicali, and Gallegos – like many others – fears it will suck up what little water remains to make beer for export to the US.

Gallegos and other farmers see themselves as the victims of an unhealthy deal between the state government of Baja California and Constellation Brands, the third biggest brewer in the US.

“They’re managing the water as if it were loot to be divvied up among them,” he said. “The government’s intention is to leave us with nothing, without land and without water.”

The new plant is projected to start production in 2019, churning out nearly 4m bottles a day of beers including Corona, Modelo and Pacífico.

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Total Joins Chevron in Gulf of Mexico Development

9/24/2017 Financial Tribune

French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement with Chevron for the development of seven prospects covering 16 blocks in the deepwater section of the gulf.  The French company said the prospects it will develop are located in the Wilcox play in the central Gulf of Mexico, next to the Anchor discovery, and in the Norphlet area, close to the Appomattox discovery, Oil Price reported.

Total will take stakes of between 25-40% in the prospects, to add to its already existing interests in producing fields in the GOM: a 17-% stake in the Tahiti field, whose operator is again Chevron, and a 33.33% interest in the Chinook field, operated by Brazil’s Petrobras. The French major also holds 40% in the North Platte field, operated by Cobalt Energy.French Total has expanded its presence in the Gulf of Mexico by closing a farm-in agreement.

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Mexico and U.S. executives to share data to make case for free trade

12/8/2016 Reuters 

HE_Enrique_Peña_Nieto,_President_of_Mexico_(9085212846)Mexican and U.S. business leaders will share information on cross-border economic integration as they seek to build a case for free trade under the government of President-elect Donald Trump, a top industry group said on Wednesday.

Trump has threatened to renegotiate or withdraw from the North American Free Trade Agreement (NAFTA), prompting concern in Mexico about the future of the economy, trade and foreign investment.

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Giant Aluminum Stockpile Was Shipped From Mexico to Vietnam

Wall Street Journal 12/1/2016
sea tradeVUNG TAU, Vietnam—One of the world’s largest aluminum stockpiles, which until a few months ago was stored under hay and plastic tarp in a Mexican desert, has been moved to a remote port here in southern Vietnam.

Starting early this year, 500,000 metric tons of aluminum has been trucked out of the Mexican city of San José Iturbide and shipped to Vietnam, according to shipping records and people familiar with the matter. Much of it now sits under black tarps, guarded by baton-wielding men on motorcycles, at a factory and waterfront complex in this South China Sea port about a two-hour drive south of Ho Chi Minh City.

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