(Pemex, 13.Apr.2016) – Given the difficult situation of global low oil prices, Pemex faced a liquidity problem, while not a solvency one. In this context, Pemex continues to focus on two main courses: the adjustment of its cost structure and the implementation of a business strategy based on the Energy Reform’s new instruments to attract investment.
In this context, the Federal Government, through the Ministry of Finance and Public Credit (SHCP), announced the following mechanisms to support the company: 1) The injection of liquid instruments by 73.5 billion comes at an opportune time for the company given the difficult situation being experienced by the global oil industry.
Pending authorization by its Board of Directors, Pemex has committed to use said support for the following:
— In this and subsequent fiscal years, reduce and regularize payments to suppliers and contractors to maintain an adequate current liabilities level given the company’s operations.
— And coupled to the 15 billion pesos credit obtained from Mexican development banks, fulfill the company’s 2015 pending accounts payable to suppliers, based on the agreed payment schedule.
2) Reduction of the fiscal burden by approximately 50 billion pesos to diminish the company’s financial deficit, which will allow to reduce the funding needs in the same amount, improve liquidity indicators by strengthening the cash balance and the company’s capital structure, in addition to improving the debt trajectory for the year.
The budget adjustment plan approved by the Board of Directors and undertaken by the company last February, combined with the support measures recently announced by the Federal Government, set the ground for the company’s profitability and enable it to fully meet its obligations and decrease its future liabilities.
All of these actions strengthen Pemex’ outlook and consolidate it as an attractive and reliable partner to develop the national energy industry.
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