The state-owned Pemex may not require in the short term the government support promised by the president to cover the repayments of its debt, Antonio López Velarde, the company’s interim director of finance, said Monday during a call with analysts.
Pemex, which for years has been the world’s most indebted oil company, improved its financial indicators during , which could give the company some financial independence.
“The requirement for this (government) support is totally dynamic. As of today, Pemex has greatly improved its flow expectation for the current year and what is being considered (is that) many of these maturities could be settled with their own income”, explained López Velarde in the conference call.
The federal government announced that from last year and until 2024 it would absorb the company’s debt write-downs as part of strategies to improve its financial position after the pandemic.
In the first quarter of the year, the company has already received financial support to cover its amortizations, according to what was said this morning at the conference with analysts.
The administration of the oil company did not completely rule out financial support and said that there is “potential support” in the event that it is required. “If necessary and economic conditions change, support from the federal government could materialize again. As of today, we identify that, at least in the short term, it might not be required,” said the interim director of finance.
The declaration of the directors of Pemex follows up on what was said last Thursday by Rogelio Ramírez de la O, the secretary of the Treasury, regarding to cover the company’s debt amortizations, even though the company’s income has improved.
The Reuters agency reported a few weeks ago that on April 21 related to the expiration of a bond issued in 2015.
According to Reuters , Pemex has payments of around 3,800 million dollars between next May and December related to principal and interest payments.
