Bond Market News

Mexican oil company Petroleos Mexicanos (Pemex) released its Q1 numbers where it reported its fifth consecutive month of growth in oil production. The company reported sales of MXN 317.55bn ($15.7bn) in the quarter, up 11.8% YoY. The oil company was subject to a 11.3% lower tax due to the reduction in the Profit-Sharing Duty (DUC) rate and fiscal benefit provided by the government. The improved production and lower taxes helped Pemex to trim its 1Q21 losses to MXN 37.34bn ($1.8bn) vs. MXN 562.25bn ($27.8bn) in 1Q20. According to the company, the entire loss can be attributable to the depreciation of the peso vs. the dollar. The EBITDA for the quarter stood at MXN 106bn ($5.23bn) vs. MXN 53bn ($2.6bn) YoY with an EBITDA Margin (EBITDA/Total Sales) of 33%. Total debt of the company stood at $113.9bn, up 4% compared to end-2020, out of which $6.4bn is due this year. The company that accounts for ~99% of Mexico’s oil production said, “In 1Q21 PEMEX transferred a net amount of MXN 133.3 billion to the Federal Government, making it the country’s main contributor.”

Pemex´s is rated BBB by S&P and Ba2 by Moody’s and its USD bonds remained unchanged. Its 7.69% 2050s at 96.511, yielding 8% and its 4.625% 2023s at 103.998, yielding 2.87%.

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