Pemex looks to refinance bonds
February 28, 2019 |
Mexico's state-owned oil company could come to the market to take care of $6.6bn in notes coming due, CFO says
Mexico's Pemex will refinance $6.6bn in outstanding bonds this year as it engages in liability management to meet amortization schedules in 2020 and 2021, CFO Alberto Velázquez said.
"We are coming to the market with $6.6bn in amortizations. We have $6.3bn in [dollar-denominated] revolver facilities, of which we used $300m last year," Velázquez said during a conference call to discuss the state-owned oil company's financial results for last year.
"We have used these facilities to enhance liquidity for Pemex during periods when we think the capital markets are not there," he added, hinting that the company could use the revolvers if investors remain unconvinced by Pemex's plans to lift itself out of debt.
Pemex, which almost halved its net losses to $7.6bn in 2018, is also working to cut costs and improve efficiency. To help do that, the government unveiled a MXN107bn ($5.58bn) rescue plan earlier this month, including a MXN25bn capital injection and increased tax breaks for the oil company.
"The government has offered to continue to help Pemex, and Pemex is on the right track," Velázquez said. "But it's not just the Mexican government... Pemex's management is committed to improving our finances."
Pemex produced an average of 1.8bn barrels per day in 2018, short of its target of 1.9bn bpd, but it plans to start developing 20 new oilfields before the end of the year to increase production.