Bloomberg News

Pemex Reports Biggest Loss Since 2008 on Currency, Taxes

October 28, 2011

Oct. 28 (Bloomberg) -- Petroleos Mexicanos, Latin America’s largest oil producer, posted its biggest quarterly loss since 2008 on a weaker peso and higher taxes.

Pemex, as the company is known, posted a loss of 81 billion pesos ($6.2 billion) in the third quarter compared with a loss of 2.8 billion pesos in the year-ago period, the Mexico City- based company said yesterday in a statement to the Mexican stock exchange.

Pemex said tax payments rose 35 percent to 214 billion pesos from 154.3 billion pesos in the third-quarter of 2010. Currency losses totaled 49 billion pesos, the state-company said.

The Mexican peso dropped 16 percent in the third-quarter, making it the third worst performer against the U.S. dollar among the 16 major currencies tracked by Bloomberg, after the Brazilian real and the South African rand.

The peso averaged 12.33 against the U.S. dollar in the third quarter, 3.8 percent stronger than the average exchange rate of 12.80 during the same period last year.

Benchmark U.S. oil futures rose 17 percent in the quarter from a year earlier to average $90.76 a barrel on the New York Mercantile Exchange. The Mexican mix price average was $101.01 a barrel in the quarter, a gain of 46 percent versus the previous year.

Pemex’s quarterly revenue climbed 23 percent to 392 billion pesos. Operating income was 158 billion pesos in the period, the company said.

Pemex press officials did not respond to an e-mail request for comment after the report’s release.

Taxes on Pemex generate about a third of Mexico’s government revenue.

Pemex’s oil production was 2.525 million barrels a day in the quarter, down 1.6 percent from the same quarter a year earlier.

--Editors: Jonathan Roeder, Jessica Resnick-Ault

To contact the reporter on this story: Carlos M. Rodriguez in Mexico City at carlosmr@bloomberg.net.

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net.


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