Pemex Losses Increase 37% to US$3.72bn

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Mexico's state oil company Pemex posted a 41.8bn peso (US$3.72bn) net loss in 2003, 37% more than the 30.5bn peso net loss in 2002, the company said in a statement Monday.

The losses resulted mainly from 26bn peso foreign exchange losses, CFO Juan Jose Suarez said in a conference call.

Total sales increased 30% to 626bn pesos, due to higher sales prices, higher sales volume and depreciation of the Mexican peso against the US dollar, Suarez said.

Costs and expenses increased 27% to 261bn pesos, mainly due to higher maintenance and sales costs, and operating income increased 32% to 365bn pesos. Ebitda increased 63% to 315bn pesos. Taxes amount to some 61% of total sales and increased 30% to 382bn pesos in 2003 from 2002, he said.

Total assets increased 19% to 832bn pesos, driven by 8% growth in property and equipment and total liabilities increased 31% to 783bn pesos. The 648bn pesos in long-term liabilities showed a 36% increase in long-term debt to 357bn pesos and a 33% increase to 284bn pesos in pension, retirement and seniority premiums. Total equity at December 31, 2003 was 51% down on the same date last year because of the 41bn peso losses and a 9bn peso minimum dividend payment to the federal government in May 2003, Suarez said.

CAPEX: Capital expenditure in 2003 was an all-time company record of US$10.3bn and in 2004 will rise further to US$12bn. Production will take a 79.4% slice of the spending, exploration 13.3%, refining 3.9%, gas and basic petrochemicals 2.1%, petrochemicals 0.9% and other items 0.3%.

Long-term productive infrastructure (Pidiregas) projects account for US$11bn of the 2004 budget and for the US$7bn-8bn that Pemex plans to raise on financial markets in 2004. Of the latter amount, Pemex plans to raise US$2bn-2.5bn on foreign capital markets, the same amount on the Mexican capital market, US$1.8bn through bank loans and US$1.3bn from export credit agencies. Pemex raised US$10.9bn financing in 2003.

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