Mexican oil giant Pemex reports $8.6 billion loss for Q1

Fire erupted on an offshore oil platform operated by Mexico's Pemex on April 1, 2015, killing at least four workers and injuring 16. Mexico's state oil giant Pemex reported losses Thursday of more than 100 billion pesos (S$8.6 billion) in the first q
Fire erupted on an offshore oil platform operated by Mexico's Pemex on April 1, 2015, killing at least four workers and injuring 16. Mexico's state oil giant Pemex reported losses Thursday of more than 100 billion pesos (S$8.6 billion) in the first quarter of 2015, hit hard by the collapse in crude prices. -- PHOTO: AFP 

MEXICO CITY (AFP) - Mexico’s state oil giant Pemex reported losses Thursday of more than 100 billion pesos (S$8.6 billion) in the first quarter of 2015, hit hard by the collapse in crude prices.

Pemex, the world’s seventh-largest oil producer, has seen the export price of Mexican crude fall from US$94.84 a year ago to US$56.01 today, dragged down by a global supply glut that has sent world oil prices tumbling as much as 60 per cent since June last year.

“The current price ranges could prevail for the next six or 18 months,” the company’s treasurer Rodolfo Campos told an investors conference.

He said the firm’s exports were down US$3.8 billion (S$5 billion) in the first quarter.

Production also fell from 2.36 million barrels a day in the fourth quarter of 2014 to 2.3 million, down from a peak of 3.4 million in 2004, said exploration and production director Gustavo Hernandez.

Pemex lost US$17.7 billion last year and has been in the red since 2013.

It had announced in February it was slashing its budget by 11.5 per cent, suspending some deep-water exploration and making major job cuts.

Pemex has wielded a monopoly over Mexico’s oil since then president Lazaro Cardenas nationalized the sector in 1938.

It contributes more than a third of the government’s tax revenues.

President Enrique Pena Nieto is seeking to breathe new life into the Mexican energy sector through reforms passed last year that include breaking up Pemex’s decades-old monopoly, easing its tax burden and inviting foreign firms back into the country.