SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Mexico’s Petroleos Mexicanos (PEMEX) released its Q3 results where it reported a quarterly net loss of MXN 77.24bn ($3.8bn), compared to a profit of $706mn in Q2 and a profit of $69mn in the 3Q2020. The losses were mainly due to the transfer of large taxes/duties and forex losses. Pemex paid MXN 75bn ($3.7bn) in taxes and incurred forex losses of MXN 40.6bn ($2bn) after reporting operating income of MXN 85.8bn ($4.2bn). Revenues increased 61% to MXN 384.7bn ($18.8bn), mainly driven by a 57.8% increase in domestic sales and a 64.5% increase in export sales. Pemex’s financial debt stood at $113bn. The available credit lines of the oil company were at $7.7bn and MXN 37bn ($1.8bn) at the end of the period. Pemex also reported a 5% increase in crude oil production of its refineries YoY. Pemex said, “It is worth nothing that the net loss that PEMEX recorded this quarter was mainly impacted by external factors and was not caused by operational issues. While CEO Octavio Romero on Wednesday said that the federal government will take over the company’s bond payments, CFO Alberto Velazquez said on an investor call on Thursday that only payments for this year are guaranteed with uncertainty over whether the government will cover debt payments post that.

Pemex´s USD bonds were stable with 4.25% 2025s at 101.922, yielding 3.61%.

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