Petroleos Mexicanos, the world’s fourth-largest oil producer, reported a second-quarter loss as higher costs offset an increase in revenue.
Pemex, as the state-owned company is known, had a net loss of 25.9 billion pesos ($1.94 billion) for the three months through June compared with a 16 billion-peso profit a year earlier, the Mexico City-based company said today in a statement to the Mexican Stock Exchange.
Chief Executive Officer Juan Jose Suarez Coppel is struggling to halt seven years of production declines amid a lack of shallow-water rigs. Pemex produced 2.54 million barrels a day during the quarter. Sales rose to 406 billion pesos from 393 billion pesos a year ago, while the cost of sales climbed 9.9 percent and general expenses jumped 40 percent. The company also reported 42.3 billion pesos of “negative financing,” without elaborating.
Suarez Coppel is maintaining the state oil producer’s forecasts to produce more than last year’s daily average of 2.55 million barrels. Pemex will reach daily production of 3 million barrels by about 2017, he said.
Pemex has “several wells coming online in the second half,” Suarez Coppel said July 20 in an interview at Bloomberg’s New York headquarters. Pemex has faced a shortage of shallow-water drilling rigs, known as jack-ups, delaying the output increase, Suarez Coppel said at the time.
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