PEMEX plummets in 2Q

July 28, 2015

Mexico’s national oil company Petróleos Mexicanos (PEMEX) suffered a 62% loss in its net income in 2Q 2015 of nearly US$52 billion ($84.6 billion MXN), a significant difference when compared to last year’s net income loss of $32.1 billion ($52.3 billion MXN).

Image from PEMEX.

In order to achieve all of the expected benefits from the energy reform and to contribute to a stronger PEMEX, we believe an important section towards developing international standards would be to allowing the company to benefit from the tax regime, with the contract proposed from Round One, Mario Beauregard, PEMEX chief financial officer said.

PEMEX’s revenue dropped nearly 25% from about $25 billion ($409 billion MXN) in 2014 to $18.9 billion ($308.8 billion MXN).

Average Mexican crude oil prices decreased 44.4% to $53.95/bbl in 2Q 2015 from $97.09 in 2Q 2014. Natural gas prices also fell 43.4% to 2.65 MMBtu this year, compared to last year’s 4.68 MMBtu.

In its upstream production, total hydrocarbons also fell 9% to 3.255 MMboe/d from 2Q 2014’s rate of 3.578 MMboe/d. Within the hydrocarbons section, crude production decreased 9.8% to 3.255 MMboe/d, from 2014’s 3.578 MMboe/d; condensates dropped 14.6% to 36 MMb/d from 42 MMb/d year-over-year; and natural gas fell 3.7% to 6.282 MMcf/d, compared to 2Q 2014’s 6.524 MMcf/d.

These results from PEMEX, Beauregard said, are due to the market’s oversupply, and the US dollar’s continued strong growth. In addition, the deadly Abkatún Permanente platform incident that occurred in April continues to impact general parts of PEMEX’s business.

The company is currently evaluating hydrocarbon reserve volumes at two shallow water fields in the Gulf of Mexico: Batsil-1 and Cheek-1. Authorization and development plans are being processed, PEMEX said.

Batsil-1 sits at 82m water depth off the coast of Tabasco. It is expected to recover heavy crude oil in the Late Cretaceous at 1198 b/d. Cheek-1 is located in the Abkatún-Pol-Chuc field, at 28m water depth with expected recovery of light crude oil in the Cretaceous-breccia at 2148 b/d. 

In February, the Mexican state oil company was forced to decrease its budget by 11.5% compared to the previous year to $4 billion in order to maintain financial balance due to low oil prices.

Read more:

PEMEX to restore Abkatún production

PEMEX slashes budget by 11.5%



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