Pemex Says $8B More In Government Aid Could Be On Its Way
(Bloomberg) -- Mexico is doing everything it can to salvage its cash cow, and the next step may be to reimburse the oil giant for $8 billion in pension liability savings.
Petroleos Mexicanos, grappling with the collapse of oil prices, might receive a second dose of government support this year, according to Chief Financial Officer Juan Pablo Newman. The newly announced aid package, which is under revision from the finance ministry, comes on the heels of a $4.2 billion capital injection announced earlier this month.
"These measures represent clear progress that guarantees the sustainability of the company," Newman said on the company’s first-quarter earnings call on Thursday.
The plan is further affirmation that the government is behind its state-owned producer, which has seen crude output decline 11 straight years and owes more than $185 billion in debt and pension liabilities. The aid would be a form of compensating Pemex for reducing government payments to the company’s pensioners after the producer increased the retirement age in an overhaul last year, Newman said.
"It is not explicitly said that it has to be in a liquid form,” Newman said of the potential cash injection. The aid could amount to as much as 136 billion pesos ($7.9 billion), he said.
Pemex posted a 14th consecutive quarterly loss of 62 billion pesos, less than the 100.5 billion pesos from a year earlier. The company has posted losses totaling more than $58 billion since 2012.
To contact the reporter on this story: Adam Williams in Mexico City at awilliams111@bloomberg.net To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Carlos Caminada, Jeffrey Taylor
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension