Pemex sticks to guns on exploration targets

摘要

PEMEX has claimed a decision to focus spending on lower-risk exploration targets is paying off despite the Mexican oil giant this week posting a steep second-quarter loss, with net debt above $100 billion. The state player recorded a net loss for the three months to the end of June of 44 billion pesos ($2 billion) compared with a loss of 53 billion pesos in the same quarter of 2019. The quarterly result was, however, a marked improvement on the record loss of 562 billion pesos that Pemex posted in the first quarter of 2019. The state-run company blamed that reverse on foreign exchange factors. The result was also better than most analyst forecasts had suggested. However, the company has yet to explain how it intends to refinance and pay down a net debt total that has crept up to $107 billion. The second-quarter earnings included an operating loss of 30 billion pesos as compared to an operating profit of 30 billion pesos in the first quarter this year and 53 billion pesos in the second quarter of 2019. Lower crude prices and the downturn in activity caused by the coronavirus pandemic knocked sales down 52% year-on-year to $7.9 billion.