Pemex Reports $6.1 Billion Loss While Crude Output Rises

(Bloomberg) -- Petroleos Mexicanos reported its largest net loss in seven quarters even as crude output increased, the latest sign the beleaguered Mexican state driller has a ways to go to stabilize its finances.

The company reported a fourth-quarter loss of 124.1 billion pesos ($6.1 billion) compared to a profit of 96.1 billion pesos a year earlier, which it said was due to global crude tax increases of 65% compared to late 2020. The dollar strengthening against the peso led to exchange-rage losses, Pemex added.

Fourth-quarter oil and condensate output rose to 1.751 million barrels a day in the quarter, a 4.5% annual rise, due to higher volumes of light crude and condensates. However, output of its heavy flagship crude Maya declined substantially.

President Andres Manuel Lopez Obrador is seeking to make Mexico self-sufficient in gasoline and diesel by pumping more crude and making all of the country's fuel domestically instead of relying heavily on U.S. imports. To ensure the country has enough crude to make fuel, Mexico also plans to halt exports over time.

Pemex's financial debt fell 0.7% compared to a year ago to $109 billion by the end of December, thanks to federal government support, the company said in a statement Monday.

Pemex expects to receive further help from the government to pay its debt coming due, and the company received an amortization payment from the government in January, but there's no calender for additional payments, said its acting Chief Financial Officer Antonio López Velarde on a conference call with investors.

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Taxes rose during the fourth quarter because international crude prices soared. The average price of the Mexican Export Mix was $71.30 per barrel, 73% higher than the same period of 2020.

Heavy crude production fell by 5.9% in the fourth quarter compared to the same period in 2020, due to maturing deposits in the Ku-Maloob-Zaap field cluster and well failures in the northeast marine region, Pemex said.

Pemex expanded drilling in major onshore fields such as Quesqui and Ixachi. Production of the company's Isthmus light crude has also increased, in part due to expansion of drilling in shallow-water fields in the Gulf of Mexico.