Bolsa Mexicana de Valores SAB Chief Executive Officer Luis Tellez said Mexico should sell shares in state-owned oil company Petroleos Mexicanos to help make the energy sector more efficient.
Pemex, as the Mexico City-based company is known, should follow the example of Brazilian state-controlled oil producer Petroleo Brasileiro SA (PETR4) to go public with part of the company, Tellez told reporters today in Mexico City.
“It’s an extraordinary moment for Mexico to reflect on one of the most inefficient sectors it has,” Tellez said, referring to the energy sector, where the state-owned company has had a monopoly in exploring, producing and refining since it was nationalized in 1938 by former President Lazaro Cardenas.
The country should “use the stock exchange to bring” Pemex “to the Mexican people, so that they can be shareholders,” Tellez said.
Mexico hasn’t had an IPO since July, when lender Banregio Grupo Financiero SAB sold shares on the local exchange. Tellez made the comments before the July 1 presidential elections. Selling Pemex shares would require a constitutional change.
Stake Sale Proposal
Mexico’s ruling party candidate in the election may sell 30 percent of Pemex on the local exchange to boost investment and production, a campaign adviser said March 23. Josefina Vazquez Mota of the National Action Party, or PAN, will propose legislation to allow the share sale and may allow alliances with other companies for deep-water exploration, Macario Schettino said in an interview last week in Mexico City.
Petrobras first sold shares to the public in December 1957 on the now extinct Rio de Janeiro stock exchange and has soared more than six-fold in the past decade. The company raised as much as $70 billion in the world’s largest share sale in September to help finance its $224 billion investment plan.
Pemex said on Feb. 27 that its fourth-quarter loss widened to 23.8 billion pesos ($1.9 billion) from 23.6 billion pesos in the year-earlier period on higher taxes and stagnant output.
To contact the reporter on this story: Jonathan J. Levin in Mexico City at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org