Mexico's Pemex posts US$3 billion loss in third quarter
AFPMEXICO CITY--Mexico's state oil giant Pemex Friday posted a massive US$3 billion third quarter loss, citing lower export volumes, falling fuel prices and a negative foreign exchange amid a controversial push for energy reform.
October 27, 2013, 12:01 am TWN
The monopoly's sharp loss compared to a profit of US$1.87 billion in the same period last year, according to a company filing with the Mexican stock exchange.
Pemex, which funds around 40 percent of the government coffers, reported US$31.46 million in sales in the July to September period, a 0.1 percent increase from last year.
The company's net debt rose by 2.7 percent to US$62.1 million.
In August, President Enrique Pena Nieto unveiled a controversial reform plan to open the oil sector to foreign investments in order to increase production and modernize the state-run company.
The leftist opposition accuses Pena Nieto of trying to privatize Pemex, 75 years after foreign firms were thrown out of the energy sector.
But the president rejects the accusation, saying his proposal calls for profit-sharing deals with private firms while the oil would remain Mexico's property.
The company's oil production has fallen in recent years, from 3.4 million barrels per day in 2004 to 2.5 million in the third quarter of 2013.