Pemex Posts US$89mn Q1 Net Losses

Mexico's state oil company Pemex posted first quarter net losses of 993mn pesos (US$89mn) in 2004, down from 4.71bn peso profits in the same quarter last year. The fall was due mainly to 11% higher costs and expenses and to a lesser extent a decrease in other net revenues, the company said in a statement.

Operating profits fell 5% from 1Q03 to 101bn pesos and Ebitda fell 2% to 92.4bn pesos. Total sales increased 1% to 165bn pesos, with a 6% increase in domestic sales to 102bn pesos and a 6% fall in export sales to 63.1bn pesos.

Costs and operating expenses increased 11% to 63.7bn pesos. Sales costs increased 11% to 50.8bn pesos, transport and distribution costs increased 16% to 4.1bn pesos, administrative expenses increased 10% to 8.7bn pesos, and retirement, pension and indemnity expenses increased 10% to 10.8bn pesos.

Total assets increased 7% to 871bn pesos, total liabilities increased 18% to 825bn pesos and total equity fell 59% to 46.4bn pesos. Total debt increased 32% to 449bn pesos at March 31, 2004, of which short-term debt represented 14.7% and long-term debt 85.3%.


Twenty-five exploration wells were drilled in 1Q04, a 92% increase from 1Q03, and the number of development wells increased 57% to 152. Other 1Q04 upstream operating highlights included the start of tests at an offshore gas treatment facility in the Akal C complex in Cantarell, which is expected to operate at half of its 900mcf/d capacity in 2004 and reach full capacity in 2005, when it will allow Pemex to cut its natural gas flaring to 2% of production. Flaring was 4% of total natural gas production in 1Q04, down from 5% in 1Q03. In the gas processing sector, Pemex started operations of a 200mcf/d modular cryogenic plant in northern Mexico and expects to start operations of a second plant at the same location by year-end.

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