PEMEX NET LOSS $7.7 BLN
According to WSJ, mexican state oil company Petróleos Mexicanos on Thursday said it recorded an after-tax loss of $4.4 billion in the second quarter, as lower oil prices and output hit sales and hefty exchange losses boosted its financial costs.
Sales in the quarter fell 17% from a year earlier to $13.5 billion.
Pemex's hydrocarbons production fell 3.4% in the quarter, with crude oil output down 2.2% to 2.18 million barrels a day and natural gas output off 6.4% at 5.88 billion cubic feet a day.
Crude oil prices averaged $36.69 per barrel compared with $52.92 in the second quarter of 2015. Output of the company's refineries fell 5.4%, partly because of unscheduled maintenance shutdowns.
The second-quarter loss was slightly smaller in Mexican peso terms than that of a year earlier. Meanwhile, Pemex's operating profit rose 91% to $6.6 billion, lifted by reduced cost of sales.
The peso's slide to new lows against the U.S. dollar in the quarter led to foreign exchange losses of $5.7 billion.
Taxes and duties fell more than a third, reflecting lower oil prices and production, and an increase in investment in productive projects Pemex can deduct under measures taken by the federal government in April, which included a capital injection. Pemex also cut its planned 2016 budget by about $5.5 billion or 20%.
Financial support for Pemex came after the company had left suppliers of goods and services unpaid. Chief Financial Officer Juan Pablo Newman said in a conference call with analysts that Pemex has so far paid 112 billion pesos of the 147 billion pesos owed to suppliers and that the rest will be paid in the second half of the year.
Mr. Newman said Pemex, which had debt of around $96 billion at the end of June, has completed its financing program for 2016 but could prefund 2017 needs or carry out liability management operations in the second half of the year.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.