EconomyFinancialPemex is under pressure to resume payments on its...

Pemex is under pressure to resume payments on its financial debt

Pemex is under pressure to resume its financial debt repayments despite the fact that President Andrés Manuel López Obrador assured last year that his government would take care of them until 2024, to alleviate the onerous burdens of the indebted oil company.

Two sources with knowledge of the matter assured the Reuters news agency that on Thursday, April 21, Pemex will pay about 1,000 million euros from its cash for the maturity of a bond issued in 2015.

“Pemex will make the payment of its maturities this month with its own resources, since the Ministry of Finance did not make capital contributions in April for the company to make its amortizations,” said one of the sources who spoke on condition of anonymity for not be authorized to testify.

The source specified that between May and December there are outstanding principal and interest payments – linked mainly to bonds – for some 3.8 billion dollars.

“Hacienda notified Pemex about three weeks ago that the company had to pay the Eurobond, arguing that it has more resources due to the increase in international crude oil prices,” he added.

Hacienda and Pemex did not respond to requests for comment from Reuters.

The source explained that the Ministry of Finance has been pressing in recent weeks for Pemex to resume amortizations linked mainly to debt issues, which this year are around 7,500 million dollars; another $7.4 billion in 2023 and $8.8 billion in 2024. In 2021 it was about $6.4 billion.

Refinancing in sight

The other source assured Reuters that “the additional income from Pemex will be significant and that allows the company to receive less support (from the Government)”, but did not give details on the amount of extra income derived from the rise in energy prices after the invasion. from Russia to Ukraine.

Pemex’s financial debt closed 2021 at 109,000 million dollars and net losses were 10,900 million dollars.

Meanwhile, in the heart of the state giant, they have already begun to draw up a refinancing plan for some 3,500 million dollars of financial debt, anticipating that the resources of the State will not arrive, for now, from the Treasury, said one of the sources.

In January, the Treasury announced a $3.5 billion refinancing of Pemex’s debt that eased the financial pressure between 2024 and 2030. But, according to experts, it did not alleviate the burdens of 2022 and 2023, which were final.

In 2021, the federal government made equity contributions to Pemex for 202,569 million pesos for debt repayments, in addition to 73,280 million pesos as a tax incentive creditable to the payment of the Right for Shared Utility, DUC.

A few weeks ago, when presenting their results, Pemex officials announced that this year the Government would make capital contributions according to the maturity profile.

López Obrador recently argued that extra oil revenues will be used to cover fuel subsidies and pay for repairs at refineries, with a view to optimizing plants to achieve his promise of energy sovereignty.

In a recent interview with Reuters, the undersecretary of the Treasury, Gabriel Yorio, also stated that the bulk of the additional inflows to the state coffers would go to cover the subsidy to keep the already high inflation at bay.

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