• LOSS: Mexico state-owned oil company, Pemex, reported a third quarter net loss of USD 4.5 billion in revenue arguing a decrease in oil prices and fuels bringing its total loss so far in 2019 to USD 9.2 billion, a figure seven times greater than during the same period of 2018.
• FACTORS: “The most important variables that explain this situation are a decrease in the reference prices of gasoline and diesel; a decrease in sales volumes of these fuels due to the loss of market given the entry of new competitors and the fall in price of the Mexican export mix”, Pemex reported.
• OPTIMISM: Touting a recent major refinancing of part of its debt, Pemex’s CFO Alberto Velazquez said Monday that the company’s financial position is stronger given that its tax burden will be eased thanks to recent changes by the Mexican Congress that could free resources for USD 2.3 billion.
• WARNING: With heavy pressure on its bonds, the International Monetary Fund (IMF) recommended Pemex earlier this month to reconsider its business plan by allowing joint ventures in the upstream along with avoid further investments in loss-making downstream among other measures.
