Pemex Q1 financials pick up

MEXICO CITY, May 4, 2017 – On Wednesday, Pemex reported in a filing with the Mexican Stock Exchange that it had had a successful first quarter, showing net profits of MXN 87.9 billion (USD 4.7 billion) for the first quarter, the company’s first since 2012

Pemex also saw positive revenue of MXN 349 billion (USD 18.58 billion) for the same period.

In Q1 2017, Pemex sold its crude mix at USD 44.11 per barrel, a price 70% higher than in Q1 2016. The higher prices have boosted the NOC’s sales revenue by 86%, while actual volumes of exported crude fell by 3.6%.

Also up were the NOC’s petrol and diesel output, with Mexico’s six refineries having processed 950,000 bpd, or 21% more oil during the quarter than in the first three months of 2016.

The company’s Q1 oil production followed an opposite trend, slumping by 9.5% in Q1 2017 compared to the same period last year. Output in the first three months of this year reached 2.02 million bopd.

Gas production also declined to 124 mcm (4.37 bcf) per day, representing a 16% loss over the same period in 2016.

The NOC’s CFO, Juan Pablo Newman, told analysts that “Pemex continues taking firm steps in the right direction.”

Pemex is actively seeking partners in the upstream and downstream sectors to reverse production and efficiency losses at its assets. In E&P, the company has already partnered with several companies, including BHP Billiton, which was awarded a farm-out at the Trion field.

At least three new farm-out opportunities will be auctioned in 2017: the offshore Ayin-Batsil fields in mid-June, and the onshore Cárdenas Mora and Ogarrio fields in early October.

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