Pemex Improves its Annual Net Results by 400 Billion Pesos

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The FINANCIAL — Petróleos Mexicanos improved its annual net results for 2016 by over 400 billion pesos, a reduction of losses equal to 58 per cent, as compared to 2015. The above was a result of a greater operating efficiency, lowering costs, and recovery of hydrocarbon prices.

This was disclosed today in the presentation of the 2016 financial results, among which it was highlighted that the company reverted its operating losses, going from a negative result of 154 billion pesos in 2015 to a performance of 364 billion pesos last year, which translated into an improvement of 518 billion.

Likewise, Pemex achieved a reduction of 26 per cent in its operation costs, due to the discipline and efficiency policies that are being applied in all areas. In this sense, to mitigate the effects of the drop of oil prices, the budget adjustment plan for 100 billion pesos, which was announced in February last year.

The financial deficit, which was approved by the Congress of the Union for 2016, which amounted to 149 billion pesos, closed the year at 102 billion, which reduced the net needs for financing for this year, according to Pemex.

Also, the liquidity position of the company was improved, as it closed the year at a level of 164 billion pesos of cash in hand and with availability in credit lines, thus providing a greater flexibility to face its commitments during 2017.

On the other hand, arising from the efficiency in extraction, production costs, and price trends, the deterioration of the fixed assets or oil infrastructure was reverted by 52 per cent.

Regarding production, it must be pointed out that, for the first time in five years, the goal of 2.130 million barrels of oil per day was met, at 2 million 154 thousand barrels.

After a complicated year for the international oil industry, the great efforts made by the current management of Pemex and the execution of the Business Plan, of which profitability is the axis, are beginning to yield positive results.

Petróleos Mexicanos continues actively exploring the opportunities that the Energy Reform has provided, by means of migrations with partners in various types of exploration and production projects, as well as in establishing strategic alliances in the different business lines. This will allow for the incorporation and adoption of cutting-edge technology and best practices, thus contributing to the improvement of the efficiency and competitiveness of the State Productive Company.

The current year represents a point of inflection for Pemex, with stable finances and a positive trend, which can, however, doubtlessly be improved.


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