Mexico’s Pemex expects wider loss in 2008

MEXICO CITY (Reuters) – Mexico’s state oil company Pemex said on Tuesday it expected its net loss in 2008 to be “significantly greater” than its 2007 results due to the sharp drop in oil prices in the fourth quarter.

Pemex did not provide an estimate of its expected loss in a statement filed with the U.S. Securities and Exchange Commission, but it comes as the company has been struggling with sliding oil production due to falling yields from the giant Cantarell field.


Pemex lost 16.1 billion pesos ($1.48 billon) in 2007. The company earned 5.6 billion pesos ($411 million) over the first nine months of 2008.

The company frequently posts annual net losses due to a heavy tax burden, inefficient operations and a crushing liability for retiree benefits.

Oil output fell 9.2 percent in 2008 to 2.799 million barrels per day, compared to 2007. Oil exports slumped by 16.8 percent to 1.403 million bpd over the same period.

Reuters