EconomyFinancialPemex revenues rise 57%, but it extends its losing...

Pemex revenues rise 57%, but it extends its losing streak

The state-owned Pemex saw a significant increase in its revenues last year as part of the global recovery in the price of oil and its derivatives.

The company added revenues of 1,496 million pesos during the past year. The figure represents an annual increase of 56.95%. A year earlier, in 2020, the state oil company reported total sales of 953.661 million pesos. Pemex has attributed this figure to the recovery of the price of the Mexican export mix and of the hydrocarbons sold in the domestic market, beyond a higher sales volume displaced.

The increase in income was observed in line with an increase in the cost of sales, which originated mainly from a higher price of the products that the state company buys for resale, such as imported gasoline. The increase was 24%, of 1,073 million pesos from 868,968 million pesos a year earlier.

2020 was significantly complicated for oil companies globally. The changes in the economic dynamics derived from the pandemic sank oil prices and demand. Hence last year’s revenue is a low basis for comparison.

But the increase in income was not enough for the company to end the streak of negative figures in terms of net profits, although the reduction was important, of 54%. Pemex ended 2021 with a net loss of 224,363 million pesos. A year before this figure was 509,052 million pesos.

The company has explained in its financial report to the Mexican Stock Exchange that this last result “was not generated by operating factors or income or costs in the company.” Most of the losses, he said, are attributable to an exchange rate effect, the depreciation of the peso against the dollar.

The state company says that the net losses originated from a negative exchange effect, an increase in the cost of its financial instruments and in taxes and duties. “This is considered a virtual item, since most of it does not represent cash flow inflows or outflows,” says Pemex in its report regarding foreign exchange losses.

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