Page 6 - LatAmOil Week 06 2022
P. 6

LatAmOil                                          MEXICO                                            LatAmOil



       Moody’s analyst says Pemex faces




       less risk of ratings downgrade in 2022






                         AN analyst for Moody’s Investors Service has   she said.
                         said that Mexico’s national oil company (NOC)   Additionally, she said, crude exports are an
                         Pemex has reduced the risk of another down-  important source of the funds that Pemex needs
                         grade in its credit rating this year.  to trim its debt portfolio, which amounts to
                           Nymia Almeida, the senior vice-president   more than $100bn. “They need to generate hard
                         for corporate ratings at Moody’s, told Bloomb-  currency to pay their debts, so it’s important that
                         erg in an interview earlier this week that Pemex   they keep exporting oil,” she commented.
                         was looking like a more stable prospect. Now   Moreover, the analyst said she was not cer-
                         that pricing and production environments are   tain that the Mexican government was devoting
                         more favourable and additional government   sufficient resources to downstream projects
                         funding has become available, the company’s   to achieve its aim of eliminating fuel imports.
                         securities are less likely to sink further into the   “If they don’t invest enough in downstream,
                         junk range, she said.                they will not be able to increase production of
                           “[Pemex’s] debt must have declined last year   fuel,” she remarked. “I don’t see them investing
                         because of the payments by the government,   enough.” ™
                         [and] production has stabilised and prices are
                         very solid, so they should be less of a burden – at
                         least, this year,” she said. “I think the amount of
                         money that they may need this year will be less.”
                           The NOC’s current rating under the Moody’s
                         system is Ba3, or three steps below investment
                         grade, with a negative outlook.
                           Almeida did qualify her statements about
                         the reduction in Pemex’s risk levels, saying she
                         remained concerned about the company’s plan
                         for phasing out oil exports and processing all
                         of its own output domestically. This approach
                         is worrisome because the NOC is not extract-
                         ing enough crude to support refineries in the
                         production of sufficient fuel to meet domestic
                         demand, meaning that the country will remain
                         dependent on imported petroleum products,   Higher crude oil prices and state funding have benefited Pemex (File Photo)



       Mexican crude oil export cuts



       already affecting Indian refiners






                         MEXICO’S national oil company (NOC) Pemex   exported to India to 15,000 barrels per day
                         has reportedly slashed crude exports to India   (bpd) for the January-February period, down
                         since the start of 2022, in an apparent move to   by 84.7% on the figure of 98,000 bpd posted in
                         uphold its previously announced goal of making   the same interval of 2021, they said.
                         more feedstock available to domestic refiners.  One of the sources remarked that Pemex was
                           Sources familiar with the matter told Reuters   not only putting existing clients on hold but was
                         earlier this week that state-controlled Pemex   also making no attempts to attract new custom-
                         was taking deliberate steps to reduce the volume   ers. “Indian refiners that buy Mexican crudes
                         of crude delivered to Indian refiners. They noted   every month are being called to notify them
                         that the NOC was scheduled to send only one   of volume cuts in 2022. Pemex has also turned
                         cargo of oil to an Indian buyer in the first two   down requests by refiners trying to sign new
                         months of 2022. This will cut the total amount   contracts,” he told Reuters.



       P6                                       www. NEWSBASE .com                       Week 06   10•February•2022
   1   2   3   4   5   6   7   8   9   10   11