Petroleos Mexicanos (Pemex) is the biggest liquidity and debt concern among Latin American oil companies, despite the billions of dollars it receives in government support, according to Fitch Ratings.
pemexthe world’s most indebted state-owned energy company has $25 billion in short-term debt and $4 billion in bonds maturing in 2023, the agency said. Fitch rating agency in a report released on Wednesday.
“Pemex is of greatest concern in terms of maturity and liquidity,” Fitch said, noting that since most issuers refinance debt in the short term, with maturities between 2024 and 2026, there is a risk of creating serious competition for the Mexican company.
Among its competitors in the region, including Argentina’s YPF, Brazil’s Petrobras and Colombia’s Ecopetrol, Pemex also has the highest total debt-to-proven reserves ratio of $14.70 per barrel of oil equivalent (boe), according to Fitch.
meanwhile, extraction costs from Pemex rose to $26.15 per barrel in 2022 from $19.14 per barrel a year earlier.
In 2020 Pemex became the biggest “fallen angel” in the world: an issuer whose rating has been downgraded to “junk” from investment grade.
Pemex did not immediately respond to a request for comment.
In July, Pemex CFO Carlos Cortes told investors during an earnings call that despite government support, management is assessing whether to return to the markets this year or next.
Pemex financial debt Now it is $110 billion, most of which is in bonds. From 2019 to the end of June, Pemex received more than $42 billion from the government.
Reuters
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
