980x200
Hispanic World Volver a "Hispanic World"

Mexico's gov't pumps $5 bn in capital into Pemex

MEXICO OIL | 11 de septiembre de 2019

Emergency services workers respond to a bomb threat on Sept. 25, 2017, at the Petroleos Mexicanos (Pemex) headquarters in Mexico City, Mexico. EPA-EFE FILE/Jorge Dan Lopez

Mexico City, Sep 11 (efe-epa).- The federal government said Wednesday that it was pumping $5 billion in capital into Petroleos Mexicanos (Pemex), bolstering the balance sheet and providing the state-owned oil company with financial stability.

"The government of Mexico will contribute equity in the national currency equivalent to $5 billion to Petroleos Mexicanos (Pemex)," the Finance and Public Credit Secretariat said in a statement.

The move is part of "efforts" by President Andres Manuel Lopez Obrador's administration to ensure Pemex's financial stability and "improve its profitability and strategic contributions" on a long-term basis to the Mexican economy, the secretariat said.

"The equity contribution will be funded with financial assets deposited in the Treasury of the Federation. Pemex will use these funds to reduce its debt along with measures that the company will announce soon to cut debt and improved its maturity profile," the secretariat said.

The equity infusion will not have an "impact on the net debt" of the public sector, the secretariat said.

Pemex said in a statement released at almost the same time that the $5 billion in capital provided by the federal government would be used "for the prepayment of bonds in the short part of the curve with maturities between 2020 and 2023."

The state-owned oil company also said that it issued seven-, 10- and 30-year bonds in transactions on international markets on Wednesday, refinancing short-term debt amid the equity injection from the Treasury.

"Finally, Pemex will launch an exchange offer to the effect of providing additional support to maturities in the short, intermediate and long part of the curve, in order to improve the company's amortization profile," the company said in a statement.

Pemex said "t is anticipated that this transaction will have participation of investors from the United States, Europe, Asia and Mexico. Goldman Sachs, J.P. Morgan, Citi, HSBC, Mizuho, Crédit Agricole and Bank of America will act as bookrunners."

Pemex is carrying total debt of more than $104 billion and has another $64 billion in pension obligations, accounting for 20 percent of Mexico's debt.

Lopez Obrador, who took office on Dec. 1, 2018, has vowed to fix Pemex's problems and make Mexico energy self-sufficient.

On July 16, the administration presented the Petroleos Mexicanos Business Plan, which included an 11 percent tax cut for the company and a capital infusion to bolster the balance sheet.

The business plan also calls for building a new refinery, but analysts contend that Pemex needs to expand exploration in deepwater areas to boost oil production, which has fallen to 1.64 million barrels per day (bpd). EFE

mqb/hv

  • Ningún comentario presente
Normas de comentarios

www.wnenespanol.com no se hace responsable de las ideas expresadas por los autores de los comentarios y se reserva el derecho a eliminar aquellos contenidos que:
  • resulten ofensivos y/o discriminatorios
  • que tengan como fin promover el boicot contra personas, productos empresas o instituciones
  • que atenten contra el derecho a la intimidad, al honor y/o a la propia imagen o nombre
  • aquellos que busquen fines comerciales y/o publicitarios
500 caracteres disponibles
Para evitar spam, por favor resuelva este simple problema matematico e ingrese el resultado (pinche en la imagen para recargarla).

Hispanic World