“We are exploring all (the options),” Romero said, adding that they had not ruled out the possibility of offering potential lenders guarantees backed by crude oil. — Bloomberg
MEXICO CITY: Mexico’s heavily-indebted state oil company Pemex will seek to avoid pricy capital markets even as it faces billions in maturing debts this year and next, its chief executive tells Reuters, saying Pemex has been “punished” by ratings agencies despite measurable improvements in its operational numbers.
With its financial debt totalling nearly US$108bil (RM488.2bil) at the close of last year, Pemex must pay down some US$8.2bil (RM37bil) expiring this year and another US$9bil (RM41bil) more in 2024 in both bonds and long-term bank loans.
When other liabilities – such as revolving credit lines and interest – are included, Pemex is facing repayments of US$24bil (RM108.4bil) this year, putting the company in a challenging refinancing position.
“We are exploring all (the options),” the company’s chief executive officer Octavio Romero said in an interview on Tuesday afternoon at his office in Mexico City, adding that they had not ruled out the possibility of offering potential lenders guarantees backed by crude oil.
Romero’s boss, president Andres Manuel Lopez Obrador, has long favoured stronger state control over the energy sector, repeatedly pledging to “save” the Mexican oil giant at all costs.
Asked whether Pemex would avoid returning to debt markets after an especially expensive bond issuance in January, he responded: “Yes, yes, we are going to try to find the best, cheapest mechanism.”
Romero said he hopes Pemex will not have to ask for more help from state coffers – but he did not rule it out.
“That is the great benefit of two very important government entities working hand-in-hand,” he said, referring to the finance ministry and Pemex, Mexico’s biggest company and largest contributor to state revenues.
Romero hit back at credit rating agencies that have “punished” Pemex by declaring its bonds speculative grade, or junk, which made its borrowing more expensive. — Reuters
