Pemex CEO Emilio Lozoya Austin stepped down late on Monday, a victim of 12 straight quarterly losses, declining output for the past 11 years in a row and a pressing need for spending cuts.

Pemex CEO bows out

MEXICO CITY, February 9, 2016 – Pemex CEO Emilio Lozoya Austin stepped down late on Monday, a victim of 12 straight quarterly losses, declining output for the past 11 years in a row and a pressing need for spending cuts.

President Enrique Peña Nieto immediately named a successor: José Antonio González Anaya. A former member of the board, González Anaya will be tasked with cutting Pemex’s debt burden, which has grown to almost USD 200 billion. The New York Times quoted energy consultant Luis Miguel Labardini as saying that the company owes contractors more than USD 10 billion by now.

Pemex’s Q3 2015 losses came out at a record USD 10.2 billion, prompting Deputy Finance Minister Miguel Messmacher on January 27 to call for cost control and more prudent investments. Pemex also saw its credit rating downgraded by Moody’s. Last week, central bank president Agustín Carstens also weighed in on Pemex, stressing the urgency of spending cuts.

In an interview with TOGY in late-2014, Lozoya Austin spoke about Peña Nieto’s energy reforms, saying Pemex’s organisational structure would have to be streamlined. “In order to be competitive, we have to become more efficient, transparent and undergo a tremendous transformation that will include the restructuring of the company,” he said.

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