Pemex reported an annual loss of $23bn, 38.2% wider compared to its 2019 loss, described by CEO Octavio Romero as the “worst crisis” in its history. Industrial transformation losses contributed to 45.6% of the overall loss and exploration, and production losses contributed 41.9%, according to the annual report. “The unprecedented combination of low prices for crude and petroleum products…a steep fall in fuel consumption eroded the cash flows of all oil companies,” Romero said. Total revenues for 2020 fell 32% to $42.47bn. However, Pemex recovered in the second half of 2020, recording net profits in Q3 and Q4, with profit for the second half coming in at $5.9bn, a vast improvement compared to the Q4 2019 with losses of $8.2bn. It was the first time in more than four years that Pemex recorded net profits in two consecutive quarters. The company’s FX profits were at $12.2bn for the quarter, up 3.6x YoY. Meanwhile they noted that financial debt rose 13.9% YoY in Q4 to $113.2bn in total due to short-term credit lines for liquidity management. Pemex’s dollar bonds are trading higher today – its 6.75% 2047s are up 1.8 to 88.79, yielding 7.8%.
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