UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2007
Commission File Number 0-99
PETROLEOS MEXICANOS
(Exact name of registrant as specified in its charter)
MEXICAN PETROLEUM
(Translation of registrant’s name into English)
United Mexican States
(Jurisdiction of incorporation or organization)
Avenida Marina Nacional No. 329
Colonia Huasteca
Mexico, D.F. 11311
Mexico
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)
Yes ¨ No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)
Yes ¨ No x
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
March 6, 2007
PEMEX Unaudited Financial Results Report
as of December 31, 2006
PEMEX, Mexico’s oil and gas company and the tenth largest integrated oil company in the world,1 announced its unaudited consolidated financial results as of December 31, 2006. | ||
2006 Financial Highlights | • Total sales increased by 10%, as compared to 2005, reaching an unprecedented record of Ps. 1,058.1 billion as of December 31, 2006 purchasing power parity (US$97.2 billion)2
• Income before taxes and duties increased by 19%, as compared to 2005, to Ps. 627.0 billion (US$57.6 billion)
• Taxes and duties were Ps. 584.5 billion (US$53.7 billion)
• EBITDA increased by 26%, as compared to 2005, to Ps. 782.0 billion (US$71.9 billion)
• Net income was Ps. 42.5 billion (US$3.9 billion) in 2006 | |
4Q06 Financial Highlights | • Total sales decreased by 11%, as compared to the fourth quarter of 2005, reaching Ps. 236.2 billion as of December 31, 2006 purchasing power parity (US$21.7 billion)
• Income before taxes and duties increased by 18%, as compared to the fourth quarter of 2005, to Ps. 114.5 billion (US$10.5 billion)
• EBITDA increased by 21%, as compared to the fourth quarter of 2005, to Ps. 151.6 billion (US$13.9 billion)
• Net loss was Ps. 6.9 billion (US$0.6 billion) in the fourth quarter of 2006 |
Table 1
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Financial results summary
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||
Total sales | 265,947 | 236,226 | -11 | % | (29,721 | ) | 21,710 | 966,284 | 1,058,116 | 10 | % | 91,832 | 97,244 | |||||||||||||||
Domestic sales(1) | 142,262 | 133,031 | -6 | % | (9,231 | ) | 12,226 | 525,583 | 546,750 | 4 | % | 21,167 | 50,248 | |||||||||||||||
Exports | 123,685 | 103,195 | -17 | % | (20,490 | ) | 9,484 | 440,701 | 511,366 | 16 | % | 70,665 | 46,996 | |||||||||||||||
Income before taxes and duties(1) | 97,369 | 114,474 | 18 | % | 17,105 | 10,521 | 526,627 | 626,957 | 19 | % | 100,330 | 57,619 | ||||||||||||||||
Taxes and duties | 167,186 | 121,377 | -27 | % | (45,809 | ) | 11,155 | 604,164 | 584,459 | -3 | % | (19,705 | ) | 53,714 | ||||||||||||||
Net income (loss) | (76,324 | ) | (6,903 | ) | 69,421 | (634 | ) | (79,374 | ) | 42,497 | 121,872 | 3,906 | ||||||||||||||||
EBITDA(2) | 124,934 | 151,608 | 21 | % | 26,674 | 13,933 | 622,877 | 782,043 | 26 | % | 159,166 | 71,872 | ||||||||||||||||
EBITDA / financial cost(3) | 9.9 | 14.1 | 11.3 | 16.1 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
(1) | Figures for 2005 include the Special Tax on Production and Services (IEPS), collected by PEMEX and then paid to the Mexican Government (as part of taxes and duties). Sales figures for 2006 do not include the IEPS, because the IEPS rate was negative throughout 2006. |
(2) | Earnings Before Interests, Taxes, Depreciation and Amortization is a non US-GAAP measure, therefore we provide a reconciliation with net income. This measure includes the cost of the reserve for retirement payments and excludes IEPS. |
(3) | Excludes capitalized interest. |
Note: Numbers may not total due to rounding.
1 | Petroleum Intelligence WeeklyRanking, December 2006 |
2 | Amounts in US dollars are translated at the December 31, 2006 exchange rate of Ps.10.881 per US dollar |
PEMEX financial results report as of December 31, 2006 | 1/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
2006 Operational Highlights | • During 2006 aggregate production (crude oil, condensates and natural gas) reached 1,618 million barrels of crude oil equivalent (Mboe), 14 million barrels higher than the production in 2005
• Crude oil production decreased by 2%, to 3,256 thousand barrel per day, mainly as a result of the decline in production at Cantarell, which was partially offset by the increase in production in other areas
• Natural gas production rose by 11%, to an average of 5,356 million cubic feet per day (MMcfd)
• Petrochemical production reached 11 million tons (MMt), the highest production level recorded since 2001
• As of December 2006 there had been no incapacitating personal injury accidents in Pemex-Gas and Basic Petrochemicals in ten months. | |
4Q06 Operational Highlights | • In the fourth quarter of 2006, natural gas production rose by 13%, to 5,565 MMcfd. On December 27, 2006, natural gas production registered a new record of 5,773 MMcfd
• Total liquid hydrocarbons production totaled 3,508 Mbd in the fourth quarter of 2006, 6% less than the production in the fourth quarter of 2005:
• crude oil production decreased 202 Mbd, or 6%, to 3,104 Mbd; and
• natural gas liquids production decreased by 5%, to 404Mbd.
• On December 15, 2006, Mexico’s largest platform, KU-S, was added to the Ku-Maloob-Zaap Project in the Campeche Sound |
PEMEX financial results report as of December 31, 2006 | 2/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Operating Items
Exploration and Production
Crude Oil Production | During the fourth quarter of 2006, crude oil production averaged 3,104 Mbd, 6% less than the 3,306 Mbd average for the fourth quarter of 2005.
Despite an 11% decrease in heavy crude oil production, light and extra-light crude oil production increased by 4% and by18%, respectively.
Heavy crude oil production decreased primarily as a result of the decline in production at the Cantarell complex, maintenance activities, as well as adverse weather conditions registered during the first 10 days of December. This weather accounted for a deferral of 5.9 million barrels.
The increase of 59 Mbd in light and extra-light crude oil production was due to the completion and workover of wells, as well as the commencement of production operations in the Litoral de Tabasco and Abkatún-Pol-Chuc areas, located in the Southwest Marine Region. |
Table 2
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Production of liquid hydrocarbons
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
(Mbd) | (Mbd) | |||||||||||||||||||
Liquid hydrocarbons | 3,732 | 3,508 | -6 | % | (224 | ) | 3,769 | 3,691 | -2 | % | (77 | ) | ||||||||
Crude oil | 3,306 | 3,104 | -6 | % | (202 | ) | 3,333 | 3,256 | -2 | % | (78 | ) | ||||||||
Heavy | 2,323 | 2,062 | -11 | % | (261 | ) | 2,387 | 2,244 | -6 | % | (143 | ) | ||||||||
Light | 818 | 847 | 4 | % | 29 | 802 | 831 | 4 | % | 29 | ||||||||||
Extra-light | 165 | 195 | 18 | % | 30 | 144 | 180 | 25 | % | 36 | ||||||||||
Natural gas liquids(1) | 426 | 404 | -5 | % | (22 | ) | 435 | 436 | 0.1 | % | 1 |
(1) | Includes condensates. |
Note: Numbers may not total due to rounding.
Natural Gas Production | Natural gas production increased by 13%, as compared to the fourth quarter of 2005; non-associated gas production increased by 24%, while associated gas production increased by 5%.
The increase of 477 MMcfd in non-associated natural gas production was mainly due to an increase of production in the Veracruz and Burgos basins, located in the North Region. The increase of 159 MMcfd in associated natural gas production was a result of the completion and major repair of wells in the Ixtal and Taratunich fields, within the Southwest Marine Region.
A natural gas production record of 5,773 MMcfd was reached on December 27, 2006. Likewise, in December a non-associated natural gas production record was reached, averaging a volume of 2,480 MMcfd. |
PEMEX financial results report as of December 31, 2006 | 3/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Gas Flaring | In the fourth quarter of 2006, gas flaring represented 7.8% of total natural gas production. The increase with respect to the fourth quarter of 2005 was primarily due to maintenance on the Akal C7 and C8 platforms and the beginning of operations of compression module number 8 on the Abkatún-D platform in the Marine Regions. Additionally, scheduled maintenance in Gas Processing Centers increased the volume of natural gas that was flared. |
Table 3
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Production of natural gas and gas flaring
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||||
(MMcfd) | (MMcfd) | |||||||||||||||||||||
Total | 4,928 | 5,565 | 13 | % | 636 | 4,818 | 5,356 | 11 | % | 538 | ||||||||||||
Associated | 2,972 | 3,132 | 5 | % | 159 | 2,954 | 3,090 | 5 | % | 136 | ||||||||||||
Non associated | 1,956 | 2,433 | 24 | % | 477 | 1,864 | 2,266 | 22 | % | 402 | ||||||||||||
Natural gas flaring | 193 | 433 | 125 | % | 240 | 182 | 271 | 49 | % | 88 | ||||||||||||
Gas flaring / total production | 3.9 | % | 7.8 | % | 3.8 | % | 5.1 | % |
Note: | Numbers may not total due to rounding. |
Completion of Wells | During the fourth quarter of 2006, the number of new wells completed totaled 161, representing a reduction of 20 as compared to the fourth quarter of 2005. Development wells completed totaled 148, representing a decrease of 11, as compared to the fourth quarter of 2005, due to a decrease in the number of programmed wells in the Veracruz project located in the North Region and in the Ogarrio-Magallanes and Jujo-Tecominoacan projects in the South Region.
Exploratory wells drilled totaled 13, a decrease of 9 as compared to the fourth quarter or 2005, as a result of activity reduction in the Campeche Poniente project in the Southwest Marine Region and in the Delta del Bravo and Lankahuasa projects in the North Region.
It should be highlighted that on December 31, 2006 the number of non associated gas operating wells increased by 13% to 2,872, as compared to the previous year. This was due to higher activity in the Burgos, Veracruz and Lankahuasa projects, each in the North Region. |
PEMEX financial results report as of December 31, 2006 | 4/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table 4
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Drilling activity and inventory of wells
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
(Number of wells) | (Number of wells) | |||||||||||||||||||
Wells drilled | 181 | 161 | -11 | % | (20 | ) | 742 | 656 | -12 | % | (86 | ) | ||||||||
Development | 159 | 148 | -7 | % | (11 | ) | 668 | 587 | -12 | % | (81 | ) | ||||||||
Exploration | 22 | 13 | -41 | % | (9 | ) | 74 | 69 | -7 | % | (5 | ) | ||||||||
Total operating wells(1) | 5,925 | 6,267 | 6 | % | 342 | |||||||||||||||
Injection | 254 | 269 | 6 | % | 15 | |||||||||||||||
Production | 5,671 | 5,998 | 6 | % | 327 | |||||||||||||||
Crude | 3,128 | 3,126 | -0.1 | % | (2 | ) | ||||||||||||||
Non-associated gas | 2,543 | 2,872 | 13 | % | 329 |
(1) | As of December 31, of each year |
Note: | Numbers may not total due to rounding. |
Lifting Cost | In 2006, our lifting cost was US$4.17 per barrel of crude oil equivalent. This represents a 2% decrease as compared to US$4.24 dollars per barrel of crude oil equivalent recorded in 2005, primarily as a result of lower natural gas prices used for gas lift. | |
Seismic Information | During the fourth quarter of 2006, 2D seismic information increased by 140% and 3D seismic information increased by 145% as compared to the same quarter of 2005. This increase was due mainly to work in the North and South Regions to identify areas with probable hydrocarbon content and support the development of discovered fields. |
Table 5
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Seismic studies
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | ||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | ||||||||||||||
Seismic | |||||||||||||||||||
2D (km) | 352 | 846 | 140 | % | 494 | 3,678 | 2,172 | -41 | % | (1,506 | ) | ||||||||
3D (km2) | 250 | 613 | 145 | % | 363 | 7,305 | 2,742 | -62 | % | (4,563 | ) |
Note: | Numbers may not total due to rounding. Numbers include seismic for exploration and development. |
Discoveries | Our main discoveries during the fourth quarter of 2006 were: |
Table 6
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Main discoveries
Successful wells in | ||||||||
Project | 4Q06 | Geologic age | Initial production | Type | ||||
Coatzacoalcos | Tabscoob-101 | Miocene | 9.8 MMcfd | Dry gas | ||||
Burgos | Quintal-1 | Eocene | 2.8 MMcfd | Wet gas | ||||
Cuichapa | Nelash-1 | Pliocene | 0.6 Mbd | Light crude |
PEMEX financial results report as of December 31, 2006 | 5/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Veracruz Project | The Veracruz Basin Integral Project is part of the Strategic Gas Program (SGP) and is comprised of 19 fields. The most important fields are Lizamba, Apértura, Arquimia, Vistoso, Cocuite and Papán. It is part of the Veracruz Production Integral Asset and is located in Veracruz, Veracruz.
The first field of non-associated gas was discovered in 1958 when drilling the Cocuite 3 well, which had an initial production of 10 MMcfd. The Veracruz Basin Integral Project was approved in 2001. Currently, it is the second largest field of the country in terms of non-associated natural gas production, after Burgos.
During the project’s 6 years of execution, the principal activities have been:
• acquisition of 582 km of 2D seismic and 4,551 km2of 3D seismic,
• completion of 85 exploratory wells and 196 development wells,
• workover of 122 exploitation wells,
• construction of 223 works (pipelines and facilities), and
• discovery of 13 fields (12 of gas production and 1 of crude oil).
The aforementioned has facilitated increasing average production, from 136 MMcfd in 2001 to 723 MMcfd in 2006, and reaching a production record of 861 MMcfd in December 2006. During the fourth quarter of 2006 average production was 786 MMcfd.
The goals for 2007 are to reach an average annual production of approximately 900 MMcfd and to incorporate approximately 300 MMMcf of gas reserves. The estimated investment expected to reach these goals is Ps. 4.3 billion. The following activities are planned:3
• acquisition of 1,024 km2of 3D seismic,
• completion of 17 exploratory wells and 18 development wells, and
• workover of 18 wells.
For the 2008-2012 period, we expect to make investments totaling Ps. 19.5 billion, to carry out the following activities:4
• acquisition of 2,028 km2of 3D seismic,
• completion of 156 exploratory wells and 118 development wells, and
• workover of 19 wells. |
3 | PEMEX notes there are factors beyond its control that could affect the execution of programmed activities |
4 | Id. |
PEMEX financial results report as of December 31, 2006 | 6/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Cantarell | During 2006, Cantarell’s daily average production was 1,788 Mbd of crude oil and 716 MMcfd of natural gas, representing a 12% decrease in crude oil production, as compared to 2,029 Mbd of oil production in 2005.
In November 2006, the first horizontal well in the complex was completed, Cantarell – 1009. It is characterized by a horizontal section of 150 meters and an initial production of 8.7 Mbd.
In December 2006, production decreased to 1,493 Mbd as a result of adverse weather conditions that forced a reduction in production during the first ten days of the month. Had the weather not affected the complex, additional production of 154 Mbd would have been expected.
In 2007, we expect to make investments totaling Ps. 21.1 billion to carry out the following activities:5
• completion of 27 development wells (7 will be horizontal wells),
• 44 workovers,
• startup of operations of a nitrogen elimination plant, and
• installation of dehydrating and desalinization plants.
During the 2008-2012 period, we expect to make investments totaling a further Ps. 38.7 billion, to carry out the following activities:6
• completion of 38 development wells (three multilateral wells will be executed in 2008),
• 8 workovers, and
• deepening of 2 wells. | |
Ku Maloob Zaap (KMZ) | The Ku-Maloob-Zaap Project is located in the Sound of Campeche in the Gulf of Mexico. It is the second largest crude oil producing project after Cantarell.
During 2006, average daily production was 404 Mbd of crude oil and 203 MMcfd of natural gas, for which drilling of 23 development wells were completed.
Approximately 300 MMcfd of nitrogen will be injected into the basins in order to maintain their pressure. This is expected to occur by the end of the first half of 2007. Likewise, during 2007, 28 development wells will be drilled and 117 km of pipelines will be installed. These activities require an investment of Ps. 29.3 billion, in order to reach an estimated production of approximately 500 Mbd in 2007.7 On February 22, 2007, a production record of 496.4 Mbd was reached.
During the 2008-2012 period, our investment in the project is expected to total Ps. 38.7 billion, to carry out the following activities:8
• installation of platforms that will increase production capacity to approximately 800 Mbd of crude oil and 330 MMcfd of natural gas in 2010, and
• completion of 60 development wells. |
5 | Id. |
6 | Id. |
7 | Id. |
8 | Id. |
PEMEX financial results report as of December 31, 2006 | 7/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
KU-S Platform | On December 15, 2006, the country’s largest platform, KU-S, was installed in the Campeche Sound, as part of the KMZ project. It has a production capacity of 250 Mbd and represents a US$250 million investment.
KU-S has the equipment to separate oil from gas and the capacity to inject and distribute 600 MMcfd of nitrogen. | |
Yúum K’ ak’n’aab: Lord of the | It is expected that during 2007, the Floating Production, Storage and Offloading (FPSO) vessel, Yùum K’ak’náab, Lord of the Sea, will begin operations. This FPSO includes advanced technological characteristics such as:
• blending capacity of 600 Mbd;
• storage capacity of 2.2 MMb of crude oil;
• capacity to receive 200 Mbd of heavy crude oil and separate 200 Mbd of high viscosity crude oil;
• gas compression capacity of 120 MMcfd;
• offloading capacity of 1.2 MMbd;
• pumping capacity of 200 Mbd to Ku; and
• capacity to receive 550 Mbd of crude oil.
The vessel will be located in the Campeche Sound and will add production to the Maloob and Zaap fields. | |
Deep Waters | From 2004 through 2006, 45,200 km of 2D seismic and 12,735 km2 of 3D seismic were acquired. These acquisitions are expected to permit the identification of resources in deep water areas of the Gulf of Mexico wit a greater degree of accuracy. During the same period, 234 exploratory opportunities have been identified. |
PEMEX financial results report as of December 31, 2006 | 8/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Gas and Basic Petrochemicals
Gas Processing and Dry Gas Production | During the fourth quarter of 2006, total on-shore natural gas processing increased by 7%. This increase was attributable to a 306 MMcfd increase in sweet wet gas processing due to higher availability of gas in the Burgos basin. This increase was partially offset, however, by a decrease of 35 MMcfd in sour wet gas processing due to adverse weather conditions during the first ten days of December.
As a result of the increase in sweet wet gas and the decrease in sour wet gas processing, in the fourth quarter of 2006, dry gas production increased by 9% and natural gas liquids production decreased by 5%, as compared to the same period of 2005. |
Table 7
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Natural gas processed and dry gas production
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec.31, | ||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | ||||||||||||||
(MMcfd) | (MMcfd) | ||||||||||||||||||
On-shore gas processed | 3,862 | 4,134 | 7 | % | 272 | 3,879 | 4,153 | 7 | % | 274 | |||||||||
Sour wet gas | 3,124 | 3,089 | -1 | % | (35 | ) | 3,153 | 3,203 | 2 | % | 50 | ||||||||
Sweet wet gas | 739 | 1,045 | 41 | % | 306 | 726 | 950 | 31 | % | 224 | |||||||||
Production | |||||||||||||||||||
Dry gas | 3,183 | 3,482 | 9 | % | 299 | 3,147 | 3,445 | 9 | % | 298 | |||||||||
Natural gas liquids (Mbd)(1) | 426 | 404 | -5 | % | (22 | ) | 435 | 436 | 0.1 | % | 1 |
(1) | Includes other streams to fractionation. |
Note: | Numbers may not total due to rounding. |
Infrastructure Works | On December 22, 2006, the results of the bidding process for the construction of cryogenic plants 5 and 6 in the Burgos Gas Processing Center (GPC) were announced. ICA Fluor was the company that won the bidding. Each plant will have a processing capacity of 200 MMcfd. Construction of these plants began on January 15, 2007, and it is expected that sweet wet gas processing of the Burgos GPC will reach 1,200 MMcfd by the end of 2008.
Construction of a compression station in the state of Veracruz is expected to be completed during the third quarter of 2007, as part of the Emiliano Zapata Integral Project.
In addition, the Burgos-Monterrey pipeline is estimated to begin operating by the end of the third quarter of 2007. This pipeline will be able to transport 30 Mbd of LPG from the Burgos GPC to Monterrey. |
PEMEX financial results report as of December 31, 2006 | 9/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Refining
Processing | During the fourth quarter of 2006, total crude oil processing increased by 4% as compared to the same period of 2005. The processing of heavy crude decreased by 6%, while the processing of light crude increased by 11%. The increase in total crude oil processing was due mainly to programmed maintenance works during the fourth quarter of 2005. The decrease in heavy crude oil processing was a result of the strategy to maximize diesel and gasoline production and minimize fuel oil production. |
Table 8
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Crude oil processing
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
(Mbd) | (Mbd) | |||||||||||||||||||
Total processed | 1,236 | 1,283 | 4 | % | 47 | 1,284 | 1,284 | |||||||||||||
Heavy Crude | 519 | 487 | -6 | % | (33 | ) | 538 | 500 | -7 | % | (38 | ) | ||||||||
Light Crude | 717 | 796 | 11 | % | 80 | 746 | 784 | 5 | % | 38 |
Note: | Numbers may not total due to rounding. |
Capacity Utilization | As a consequence of the increase in crude oil processing during the fourth quarter of 2006, the primary distillation capacity utilization rate increased to 83.3% from 80.2% in the fourth quarter of 2005. | |
Production | During the fourth quarter of 2006, total refined products production increased by 4 Mbd to 1,526Mbd.
Gasoline production increased by 5%, due to higher processing of intermediate gasoline inventories. Diesel production increased by 3%, while fuel oil production decreased by 9%, mainly as a result of an increase in Isthmus crude processing in la Cangrejera Complex. |
Table 9
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Refining production
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec.31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
(Mbd) | (Mbd) | |||||||||||||||||||
Total production | 1,522 | 1,526 | 0.3 | % | 4 | 1,554 | 1,546 | -1 | % | (9 | ) | |||||||||
Gasolines | 440 | 462 | 5 | % | 22 | 456 | 457 | 0.2 | % | 1 | ||||||||||
Fuel oil | 343 | 312 | -9 | % | (31 | ) | 351 | 325 | -7 | % | (26 | ) | ||||||||
Diesel | 327 | 336 | 3 | % | 8 | 318 | 328 | 3 | % | 10 | ||||||||||
Liquefied petroleum gas (LPG)(1) | 239 | 222 | -7 | % | (17 | ) | 246 | 241 | -2 | % | (5 | ) | ||||||||
Jet Fuel | 62 | 67 | 8 | % | 5 | 63 | 65 | 2 | % | 2 | ||||||||||
Other(2) | 111 | 127 | 15 | % | 16 | 120 | 130 | 8 | % | 10 |
(1) | Excludes butilene and propilene; includes LPG and isobutanes from Pemex - Gas of 212 and 198 Mbd during the fourth quarter of 2005 and 2006 respectively. |
(2) | Includes mainly parafines, furfural extract and aeroflex. |
Note: | Numbers may not total due to rounding. |
Variable Refining Margin | In the fourth quarter of 2006, PEMEX’s variable refining margin decreased by 56%,9 to US$5.5 per barrel, from US$12.5 per barrel in the fourth quarter of 2005. This decrease was primarily a result of the increase in light crude oil processing and the effect that hurricanes Rita and Katrina had on last year’s prices. | |
Franchises | From December 31, 2005 to December 31, 2006, the number of franchised gas stations rose by 5%, to 7,554, from 7,172. |
9 | The variable refining margin is an estimate of the operating income per barrel of crude oil processed. Operating income is calculated as total revenues minus the cost of raw materials, fuel oil and natural gas used to operate the refineries, and electric power, water and catalysts (auxiliary services) |
PEMEX financial results report as of December 31, 2006 | 10/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Petrochemicals
Production | Total petrochemicals production during the fourth quarter of 2006 was 2,741 thousand tons (Mt), representing a 4% increase over total petrochemicals production in the same quarter of 2005. This increase was primarily driven by:
• Increased production of ethylene oxide and glycols due to the renovation of a catalyst.
• Increased production of ammonia and carbon dioxide, due to better operational performance.
• Increased production of methanol caused by the reopening of operations of the methanol plant in 2006, as a result of high natural gas prices.
Nevertheless, this increase was offset by a decrease in acrylonitrile production, due to a lower demand caused by the increase in the price of acrylonitrile. In addition, the production of low and high density polyethylene decreased due to the development of greater variety of polyethylene grades as well as equipment downtime. |
Table 10
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Production of petrochemicals
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
(Mt) | (Mt) | |||||||||||||||||||
Total production | 2,644 | 2,741 | 4 | % | 97 | 10,603 | 10,961 | 3 | % | 357 | ||||||||||
Methane derivatives | ||||||||||||||||||||
Ammonia | 114 | 130 | 13 | % | 15 | 514 | 592 | 15 | % | 78 | ||||||||||
Methanol | N/D | 32 | — | — | 81 | 85 | 5 | % | 4 | |||||||||||
Ethane derivatives | ||||||||||||||||||||
Ethylene | 280 | 284 | 2 | % | 5 | 1,085 | 1,128 | 4 | % | 43 | ||||||||||
Ethylene oxide | 62 | 89 | 44 | % | 27 | 321 | 361 | 12 | % | 40 | ||||||||||
Low density polyethylene | 83 | 75 | -9 | % | (8 | ) | 296 | 323 | 9 | % | 27 | |||||||||
High density polyethylene | 45 | 36 | -19 | % | (8 | ) | 169 | 167 | -1 | % | (2 | ) | ||||||||
Vinyl chloride | 69 | 65 | -6 | % | (4 | ) | 159 | 209 | 32 | % | 50 | |||||||||
Aromatics and derivatives | ||||||||||||||||||||
Toluene | 62 | 55 | -11 | % | (7 | ) | 253 | 203 | -19 | % | (49 | ) | ||||||||
Ethylbenzene | 41 | 47 | 17 | % | 7 | 155 | 156 | 0 | % | 1 | ||||||||||
Benzene | 34 | 40 | 18 | % | 6 | 160 | 135 | -16 | % | (26 | ) | |||||||||
Propylene and derivatives | ||||||||||||||||||||
Acrylonitrile | 10 | N/D | — | 63 | — | (63 | ) | |||||||||||||
Polypropylene | 92 | 81 | -11 | % | (11 | ) | 380 | 340 | -10 | % | (40 | ) | ||||||||
Others(1) | 1,753 | 1,806 | 3 | % | 53 | 6,968 | 7,262 | 4 | % | 294 |
(1) | Includes glycols, heavy reformed, oxygen, hydrogen, nitrogen, clorhidric acid, muriatic acid, hexane, heptanes and others. |
Note: | Numbers may not total due to rounding. |
Infrastructure Works | During the fourth quarter of 2006, performance tests continued at the Swing plant in the Morelos Petrochemical Complex. The plant has a capacity to produce 300 Mt per year of low and high linear polyethylene. Commercial production is expected to begin during the first half of 2007. |
PEMEX financial results report as of December 31, 2006 | 11/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
International Trade10
Crude Oil Exports | During the fourth quarter of 2006, PEMEX’s crude oil exports averaged 1,663 Mbd, 12% lower than the volume recorded during the fourth quarter of 2005. This decrease was due mainly to adverse weather conditions during the month of December and Cantarell’s production decline.
Approximately 83% of total crude oil exports were heavy crude oil (Maya), while the rest consisted of light and extra-light crude oil (Isthmus and Olmeca).
79% of total crude oil exports were delivered to the United States, while the remaining 21% was distributed among Europe (10%), the rest of the Americas (9%) and the Far East (3%).
In the fourth quarter of 2006, the weighted average export price of the Mexican crude oil basket was US$48.6 per barrel, as compared to US$45.6 per barrel in the fourth quarter of 2005, representing a 7% increase. | |
Refined Products and Petrochemicals’ Exports | Exports of refined products averaged 178 Mbd, 7% lower than in the fourth quarter of 2005. This was due primarily to the processing of Isthmus crude oil in La Cangrejera and lower jet fuel exports. The main refined products exported were naphtha and fuel oil.
Petrochemical exports decreased by 4%, or 8 Mt, totaling 184 Mt for the fourth quarter of 2006. This was attributable primarily to lower sulfur sales. The main petrochemical exports were sulfur11 and low-density polyethylene. |
Table 11
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Exports(1)
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
Crude oil exports (Mbd)(2) | ||||||||||||||||||||
Total | 1,888 | 1,663 | -12 | % | (225 | ) | 1,817 | 1,793 | -1 | % | (24 | ) | ||||||||
Heavy | 1,508 | 1,373 | -9 | % | (135 | ) | 1,520 | 1,494 | -2 | % | (27 | ) | ||||||||
Light | 172 | 66 | -61 | % | (105 | ) | 81 | 68 | -16 | % | (13 | ) | ||||||||
Extra-light | 208 | 223 | 7 | % | 15 | 216 | 231 | 7 | % | 15 | ||||||||||
Average price (US$/b) | 45.6 | 48.6 | 7 | % | 3 | 42.69 | 53.08 | 24 | % | 10 | ||||||||||
Refined products (Mbd) | 192 | 178 | -7 | % | (14 | ) | 186 | 188 | 1 | % | 1 | |||||||||
Petrochemicals (Mt) | 192 | 184 | -4 | % | (8 | ) | 853 | 824 | -3 | % | (29 | ) |
(1) | Source: PMI. Does not consider third party operations by PMI. |
(2) | Excludes the volume of crude oil under processing agreements. |
Note: | Numbers may not total due to rounding. |
10 | According to data provided by Pemex International (PMI) |
11 | Although sulfur is not a petrochemical product, it is included in this group for reporting simplification |
PEMEX financial results report as of December 31, 2006 | 12/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Imports | In the fourth quarter of 2006, natural gas imports averaged 352 MMcfd, 24% higher than during the same period in 2005, due to an increase in domestic demand and to fuel oil substitution by Comisión Federal de Electricidad (CFE).
Imports of refined products increased by 1%, from 450 Mbd in the fourth quarter of 2005 to 455 Mbd in the fourth quarter of 2006. This increase was mainly attributable to higher demand for gasolines and diesel.
Imports of petrochemicals decreased by 32%, to 107 Mt, primarily due to lower ethylene, ammonia and methanol requirements. The main imported products were isobutenes and xylenes. |
Table 12
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Imports(1)
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
Natural gas (MMcfd) | 284 | 352 | 24 | % | 68 | 480 | 451 | -6 | % | (29 | ) | |||||||||
Refined products (Mbd)(2) | 450 | 455 | 1 | % | 4 | 392 | 430 | 10 | % | 38 | ||||||||||
Petrochemicals (Mt) | 159 | 107 | -32 | % | (51 | ) | 397 | 436 | 10 | % | 38 |
(1) | Source: PMI except natural gas imports. Does not consider third party trading operations by PMI. |
(2) | Includes the volume of imported products under processing agreements. Also includes 103 Mbd and 108 Mbd of LPG for the fourth quarters of 2005 and 2006, respectively; and 73 Mbd and 76 Mbd of LPG for the January - December periods of 2005 and 2006, respectively. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 13/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Financial Results as of December 31, 2006
Sales
Total Sales | During the fourth quarter of 2006, total sales, which did not include the special tax on production and services, or IEPS tax rate during the period, decreased by 11% in constant pesos, from Ps. 265.9 billion in the fourth quarter of 2005, including the IEPS tax, to Ps. 236.2 billion in the fourth quarter of 2006. This was primarily due to lower revenue obtained from crude oil exports.
Crude oil exports decreased as a result of adverse weather conditions and lower crude oil production. | |
Domestic Sales | During the fourth quarter of 2006, domestic sales, including IEPS in the fourth quarter of 2005, decreased by 6%, from Ps. 142.3 billion to Ps. 133.0 billion in the fourth quarter of 2005. Excluding the IEPS tax from the domestic sales figure for 2006, domestic sales decreased by 5%, from Ps. 140.0 billion to Ps. 133.0 billion:
• Natural gas sales decreased by 29%, from Ps. 24.5 billion to Ps. 17.4 billion, due to a decrease in the average price from US$9.67 to US$5.79 per million British Thermal Unit (MMBtu), which was partially offset by a 16% increase in volume, from 2,506 MMcfd to 2,914 MMcfd.
• Sales of refined products, net of IEPS, increased by 0.5% from Ps. 109.3 billion to Ps. 109.8 billion. Refined products sales volume decreased by 1%, from 1,794 Mbd to 1,769 Mbd. The negative IEPS generated by sales of refined products in the fourth quarter of 2006 was credited to other taxes, and appear as “other revenues” in our income statement, as compared to Ps. 2.3 billion collected and then paid to the government in the fourth quarter of 2005. Sales of refined products, including IEPS collected in the fourth quarter of 2005, decreased by 2%, from Ps. 111.6 billion to Ps. 109.8 billion.12
• Petrochemical sales decreased by 5%, from Ps. 6.1 billion to Ps. 5.8 billion primarily as a result of a price effect, based on a 10% increase in sales volume, from 920 Mt to 1,012 Mt. |
Table 13
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Domestic sales*
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||
Domestic sales including IEPS(1) | 142,262 | 133,031 | -6 | % | (9,231 | ) | 12,226 | 525,583 | 546,750 | 4 | % | 21,167 | 50,248 | |||||||||||
Domestic sales without IEPS | 139,976 | 133,031 | -5 | % | (6,945 | ) | 12,226 | 504,549 | 546,750 | 8 | % | 42,200 | 50,248 | |||||||||||
Natural gas | 24,540 | 17,376 | -29 | % | (7,165 | ) | 1,597 | 84,368 | 77,958 | -8 | % | (6,410 | ) | 7,165 | ||||||||||
Refined products including IEPS | 111,596 | 109,819 | -2 | % | (1,778 | ) | 10,093 | 418,511 | 446,043 | 7 | % | 27,532 | 40,993 | |||||||||||
Refined products | 109,310 | 109,819 | 0.5 | % | 509 | 10,093 | 397,478 | 446,043 | 12 | % | 48,565 | 40,993 | ||||||||||||
Gasoline | 51,369 | 56,385 | 10 | % | 5,016 | 5,182 | 195,761 | 227,093 | 16 | % | 31,331 | 20,871 | ||||||||||||
Diesel | 21,258 | 22,813 | 7 | % | 1,554 | 2,097 | 83,478 | 90,434 | 8 | % | 6,957 | 8,311 | ||||||||||||
LPG | 14,396 | 14,276 | -1 | % | (120 | ) | 1,312 | 51,387 | 53,811 | 5 | % | 2,424 | 4,945 | |||||||||||
Other | 22,287 | 16,345 | -27 | % | (5,941 | ) | 1,502 | 66,851 | 74,704 | 12 | % | 7,853 | 6,866 | |||||||||||
IEPS | 2,286 | — | (2,286 | ) | — | 21,033 | — | (21,033 | ) | — | ||||||||||||||
Petrochemical products | 6,126 | 5,837 | -5 | % | (289 | ) | 536 | 22,704 | 22,749 | 0.2 | % | 45 | 2,091 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
(1) | Figures for 2005 include the Special Tax on Production and Services (IEPS), collected by PEMEX and then paid to the Mexican Government (as part of taxes and duties). Sales figures for 2006 do not include the IEPS, because the IEPS rate was negative throughout 2006. |
Note: | Numbers may not total due to rounding. |
12 | During 2005 and 2006, the average production cost of gasoline and diesel was higher than the retail price. In 2005, PEMEX absorbed this difference, in accordance with Mexico’s Income Tax Law of 2005. In 2006, the difference was credited against other taxes and duties paid by PEMEX, in accordance with Mexico’s Income Tax Law of 2006, and is recorded under “other revenues” in the income statement. |
PEMEX financial results report as of December 31, 2006 | 14/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table 14
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Volume of domestic sales(1)
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||
Natural gas (MMcfd) | 2,506 | 2,914 | 16 | % | 407 | 2,632 | 2,955 | 12 | % | 323 | ||||||||||
Refined products (Mbd) | 1,794 | 1,769 | -1 | % | (25 | ) | 1,772 | 1,763 | -0.5 | % | (9 | ) | ||||||||
Gasoline | 699 | 741 | 6 | % | 42 | 671 | 718 | 7 | % | 47 | ||||||||||
Diesel | 331 | 348 | 5 | % | 17 | 320 | 345 | 8 | % | 25 | ||||||||||
LPG | 330 | 322 | -2 | % | (8 | ) | 314 | 306 | -3 | % | (8 | ) | ||||||||
Other | 434 | 357 | -18 | % | (77 | ) | 467 | 394 | -15 | % | (72 | ) | ||||||||
Petrochemicals (Mt) | 920 | 1,012 | 10 | % | 91 | 3,750 | 3,826 | 2 | % | 76 |
Note: | Numbers may not total due to rounding. |
Exports | During the fourth quarter of 2006, export sales totaled Ps. 103.2 billion (US$9.5 billion), 17% lower than the Ps. 123.7 billion registered in the fourth quarter of 2005:
• Crude oil and condensates export sales decreased 16%, from Ps. 110.3 billion to Ps. 92.4 billion, mainly as a result of a 12% decrease in volume, from 1,888 Mbd to 1,663 Mbd, which was partially offset by a 7% increase in the weighted average crude oil export price, from US$ 45.6 per barrel to US$ 48.6 dollars per barrel.
• Refined products export sales decreased by 21%, from Ps. 12.5 billion to Ps. 9.9 billion, while the volume of refined products exports decreased by 7%, from 192 Mbd to 178 Mbd.
• Petrochemical products export sales increased by 14%, from Ps. 0.8 billion to Ps. 0.9 billion, and the volume of petrochemical exports increased by 5%, from 174 to 184 Mt.13 |
Table 15
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Exports
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||
Total exports | 123,685 | 103,195 | -17 | % | (20,490 | ) | 9,484 | 440,701 | 511,366 | 16 | % | 70,665 | 46,996 | |||||||||||
Crude oil and condensates | 110,349 | 92,377 | -16 | % | (17,972 | ) | 8,490 | 394,264 | 459,100 | 16 | % | 64,836 | 42,193 | |||||||||||
Refined products | 12,544 | 9,913 | -21 | % | (2,631 | ) | 911 | 42,464 | 48,627 | 15 | % | 6,163 | 4,469 | |||||||||||
Petrochemical products | 792 | 905 | 14 | % | 113 | 83 | 3,973 | 3,639 | -8 | % | (334 | ) | 334 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
Note: | Numbers may not total due to rounding. |
13 | Since the composition of imports and exports baskets is different, the effect of changes in prices may be different for each basket. |
PEMEX financial results report as of December 31, 2006 | 15/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Costs and Operating Expenses
Total Amount | In the fourth quarter of 2006, costs and operating expenses decreased by 22%, or Ps. 36.8 billion, as compared to the fourth quarter of 2005, to Ps. 128.9 billion (US$11.8 billion). This decrease was primarily due to lower acquisition costs of products. | |
Cost of Sales | In the fourth quarter of 2006, cost of sales decreased by 29%, or Ps. 42.2 billion, to Ps. 105.5 billion (US$9.7 billion). The decrease was the result of the following:
• a decrease of Ps. 28.6 billion in the cost of purchase of products,
• a favorable effect of Ps. 9.1 billion in the variation of inventories,
• a decrease of Ps. 4.3 billion in exploration and non-successful drilling expenses,
• a decrease of Ps. 3.0 billion in upkeep and maintenance,
• a favorable effect of Ps. 1.6 billion in manufacturing,
• an increase of Ps. 1.9 billion in the cost of the reserve for retirement payments, and
• an increase of Ps. 0.9 billion in depreciation and amortization. | |
Distribution Expenses | During the fourth quarter of 2006, distribution expenses decreased by 2%, from Ps. 7.0 billion to Ps. 6.9 billion (US$0.6 billion). | |
Administrative Expenses | During the fourth quarter of 2006, administrative expenses increased from Ps. 11.0 to Ps. 16.5 billion (US$1.5 billion), partly as a result of a Ps. 1.5 billion increase in the reserve for retirement payments. In addition, in the fourth quarter of 2005, the annual benefits as a result of medical services provided after retirement were recognized, representing Ps. 2.0 billion, while in 2006, these benefits were recognized throughout the year and not only during the fourth quarter. | |
Cost of the Reserve for Retirement Payments | The cost of the reserve for retirement payments, pensions and indemnities increased, from Ps. 13.3 billion in the fourth quarter of 2005 to Ps. 17.8 billion. This cost is distributed among cost of sales, distribution expenses and administrative expenses. |
Operating Income
Operating income in the fourth quarter of 2006 totaled Ps. 107.3 billion (US$53.2 billion), 7% greater than the comparable figure for the fourth quarter of 2005 of Ps. 100.2 billion.
Excluding the IEPS collected by PEMEX in the fourth quarter of 2005, operating income increased by 10%, or Ps. 9.3 billion, to Ps. 107.3 billion (US$9.9 billion) in the fourth quarter of 2006 from Ps. 98.0 billion in the fourth quarter of 2005. |
PEMEX financial results report as of December 31, 2006 | 16/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Comprehensive Financing Cost
Total Amount | During the fourth quarter of 2006, comprehensive financing cost increased by Ps. 1.7 billion, from Ps. 0.7 billion to Ps. 2.5 billion (US$0.2 billion). This increase was mainly caused by:
• a decrease of Ps. 3.8 billion in monetary gain,
• an increase of Ps. 1.6 billion in foreign exchange gains, and
• a decrease of Ps. 0.4 billion in net interest and financial products expense. | |
Net Interest and Financial Products14 | In the fourth quarter of 2006, net interest and financial products decreased by 3%, from Ps. 12.9 billion to Ps. 12.5 billion (US$1.1 billion).
Interest expense, including capitalized interest, decreased by Ps. 1.9 billion, while interest income increased by Ps. 1.5 billion. | |
Foreign Exchange Gain | In the fourth quarter of 2006, net foreign exchange gains totaled Ps. 3.0 billion (US$0.3 billion) as compared to a net foreign exchange gain of Ps. 1.4 billion in the fourth quarter of 2005.
This increase was primarily a consequence of the depreciation of the Mexican peso against the US dollar by 1.0% during the fourth quarter of 2006, as compared to a depreciation of 0.1% in the comparable period of 2005. | |
Monetary Gain | In the fourth quarter of 2006, the monetary gain was Ps. 7.0 billion (US$0.6 billion), representing a decrease of Ps. 3.8 billion as compared to the monetary gain for the fourth quarter of 2005. |
Table 16
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Comprehensive financing cost
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||
Comprehensive financing cost | 717 | 2,461 | 243 | % | 1,744 | 226 | 4,661 | 22,644 | 386 | % | 17,983 | 2,081 | ||||||||||||||||||
Financial income** | 239 | 1,748 | 631 | % | 1,509 | 161 | (15,079 | ) | (13,845 | ) | -8 | % | 1,233 | (1,272 | ) | |||||||||||||||
Financial cost** | 12,651 | 10,741 | -15 | % | (1,910 | ) | 987 | 55,076 | 48,617 | -12 | % | (6,459 | ) | 4,468 | ||||||||||||||||
Foreign exchange loss (gain) | (1,368 | ) | (2,991 | ) | 119 | % | (1,622 | ) | (275 | ) | (18,342 | ) | 2,354 | 20,696 | 216 | |||||||||||||||
Monetary loss (gain) | (10,805 | ) | (7,038 | ) | -35 | % | 3,766 | (647 | ) | (16,994 | ) | (14,481 | ) | -15 | % | 2,513 | (1,331 | ) |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
** | The financial cost and financial income include the effect of financial derivatives. |
Note: | Numbers may not total due to rounding. |
Other Revenues
Other Net Revenues | In the fourth quarter of 2006, other net revenues totaled a positive Ps. 9.6 billion (US$0.9 billion), as compared to a negative Ps. 2.2 billion during the fourth quarter of 2005. The increase was primarily due to higher income generated by the IEPS credit, equivalent to a negative tax rate, of Ps. 4.2 billion. |
14 | Includes the effect of financial derivatives |
PEMEX financial results report as of December 31, 2006 | 17/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Income before Taxes and Duties
During the fourth quarter of 2006, income before taxes and duties was Ps. 114.5 billion (US$10.5 billion), as compared to Ps. 97.4 billion during the same period of 2005. The 18% increase was primarily the result of:
• an increase of Ps. 11.8 billion in other net revenues, and
• an increase of Ps. 7.1 billion in operating income, which were partially offset by
• an increase of Ps. 1.7 billion in comprehensive financing cost. |
Taxes and Duties
Fiscal Regime | Since January 1, 2006, PEMEX has been subject to a new fiscal regime. As a result of this new tax regime taxes and duties as a percentage of total sales decreased from 63% to 55% in 2006. However, this figure still positions PEMEX among the companies with the highest tax burden worldwide.
Pemex - Exploration and Production’s tax regime is governed by the Federal Duties Law, while the other Subsidiary entities continue to be governed by Mexico’s Income Tax Law.
The most important duty paid by Pemex-Exploration and Production is the ordinary hydrocarbons duty (OHD), the tax base of which is aquasi operating profit. In addition to the payment of the OHD, Pemex - Exploration and Production pays the following duties under the new fiscal regime:
• duty on crude oil extraction,
• extraordinary duty on crude oil exports,
• duty on hydrocarbons for the stabilization fund,
• duty on hydrocarbons for the fund for scientific and technological research on energy,
• duty on hydrocarbons for fiscal monitoring of oil activities,
• additional duty (for low crude oil extraction), and
• excess gains duty.15 | |
Total Amount | During 2006, taxes and duties paid decreased by 3%, from Ps. 604.2 billion to Ps. 584.5 billion. Nevertheless, sales only decreased by 10%. As a consequence, taxes and duties as a percentage of total sales decreased from 63% to 55%.
During the fourth quarter of 2006, taxes and duties paid decreased by 27%, from Ps. 167.2 billion to Ps. 121.4 billion. Nevertheless, sales only decreased 11%. As a consequence, taxes and duties as a percentage of total sales decreased from 63% to 51% in the fourth quarter of 2006. |
15 | In 2005, the excess gains duty was equal to 39.2% of the revenues from crude oil export sales in excess of the threshold price set by the Mexican Government of US$23.00 per barrel. In 2006, the excess gains duty is equal to 6.5% of the revenues from crude oil export sales in excess of US$36.50 per barrel. This duty is complemented by the extraordinary duty on crude oil exports, which is equal to 13.1% of the revenues from crude oil export sales in excess of the same threshold price. The resulting combined duty is equivalent to 19.6%, which is 50% of the excess gains duty tax rate paid in 2005. |
PEMEX financial results report as of December 31, 2006 | 18/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
IEPS | Under the current fiscal regime, the IEPS,16 which applies to domestic sales of gasoline and automotive diesel, continues to be regulated by Mexico’s Income Tax Law.
During 2005 and 2006, the average producer price of gasoline and diesel was higher than the retail price. In 2005, PEMEX absorbed this difference, in accordance with Mexico’s 2005 Income Tax Law. In 2006, this difference was credited against the other taxes and duties paid by PEMEX, in accordance to Mexico’s 2006 Income Tax Law. The IEPS credit is reflected in “other revenues” in the income statement.
During the fourth quarter of 2006, PEMEX recorded a Ps. 4.2 billion IEPS credit against other taxes and duties, as compared to a Ps. 2.3 billion payment in the fourth quarter of 2005. |
Table 17
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Taxes and duties
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||
Total taxes and duties | 167,186 | 121,377 | -27 | % | (45,809 | ) | 11,155 | 604,164 | 584,459 | -3 | % | (19,705 | ) | 53,714 | ||||||||||
Hydrocarbon duties | 141,972 | 119,541 | -16 | % | (22,430 | ) | 10,986 | 515,059 | 567,152 | 10 | % | 52,093 | 52,123 | |||||||||||
Ordinary hydrocarbons duty | — | 103,283 | 103,283 | 9,492 | — | 498,462 | 498,462 | 45,810 | ||||||||||||||||
Duty on crude oil extraction | 141,972 | 3 | (141,968 | ) | 0 | 515,059 | 36 | (515,023 | ) | 3 | ||||||||||||||
Extraordinary duty on crude oil exports | — | 2,760 | 2,760 | 254 | — | 15,958 | 15,958 | 1,467 | ||||||||||||||||
Duty on hydrocarbons for the stabilization fund | — | 11,532 | 11,532 | 1,060 | — | 47,833 | 47,833 | 4,396 | ||||||||||||||||
Duty on hydrocarbons for the fund for scientific and technological research on energy | — | 92 | 92 | 8 | — | 414 | 414 | 38 | ||||||||||||||||
Duty for fiscal monitoring of oil activities | — | 6 | 6 | 1 | — | 25 | 25 | 2 | ||||||||||||||||
Additional duty | — | 1,866 | 1,866 | 171 | — | 4,424 | 4,424 | 407 | ||||||||||||||||
Special Tax on Production and Services (IEPS) | 2,286 | — | (2,286 | ) | — | 21,033 | — | (21,033 | ) | — | ||||||||||||||
Excess gains duty | 17,369 | 1,293 | -93 | % | (16,076 | ) | 119 | 58,665 | 7,916 | -87 | % | (50,748 | ) | 728 | ||||||||||
Other taxes and duties | 5,560 | 543 | -90 | % | (5,017 | ) | 50 | 9,407 | 9,391 | 0 | % | (16 | ) | 863 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
16 | IEPS is paid by the end consumer of gasoline and automotive diesel and PEMEX is an intermediary between the Ministry of Finance (Secretaría de Hacienda y Crédito Público) and the end consumer. PEMEX collects the IEPS and passes it on to the federal government. The difference between the retail price and the estimated producer price of gasoline and diesel is primarily IEPS. The Ministry of Finance determines the retail price of gasoline and diesel. The estimated producer price of gasoline and diesel is based on the production cost of production at efficient refinery located in the Gulf of Mexico plus transportation. |
PEMEX financial results report as of December 31, 2006 | 19/38 | |||
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PEMEX | Investor Relations |
Net Income
During the fourth quarter of 2006, PEMEX recorded net loss of Ps. 6.9 billion (US$0.6 billion), as compared to a net loss of Ps. 76.3 billion during the fourth quarter of 2005. The decrease of Ps. 69.4 billion in net loss is explained by:
• a decrease of Ps. 45.8 billion in taxes and duties,
• an increase of Ps. 11.8 billion in other net revenues,
• an increase of Ps. 7.1 billion in operating income,
• a Ps. 6.5 billion reduction in 2005 net income due to the initial cumulative effect of the adoption of new accounting standards, which was not repeated in 2006, and
• an increase of Ps. 1.7 billion in comprehensive financing cost. | ||
EBITDA | ||
During the fourth quarter of 2006, EBITDA increased by 21%, from Ps. 121.9 billion to Ps. 151.6 billion (US$13.9 billion). |
Table 18
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
EBITDA reconciliation
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||
Net income (loss) | (76,324 | ) | (6,903 | ) | 69,421 | (634 | ) | (79,374 | ) | 42,497 | 121,872 | 3,906 | ||||||||||||||||
+ Taxes and duties | 167,186 | 121,377 | -27 | % | (45,809 | ) | 11,155 | 604,164 | 584,459 | -3 | % | (19,705 | ) | 53,714 | ||||||||||||||
- Special Tax on Production and Services (IEPS) | 2,286 | — | (2,286 | ) | — | 21,033 | — | (21,033 | ) | — | ||||||||||||||||||
+ Comprehensive financing cost | 717 | 2,461 | 243 | % | 1,744 | 226 | 4,661 | 22,644 | 386 | % | 17,983 | 2,081 | ||||||||||||||||
+ Depreciation and amortization | 15,801 | 16,828 | 6 | % | 1,027 | 1,547 | 54,897 | 63,302 | 15 | % | 8,405 | 5,818 | ||||||||||||||||
+ Cost of the reserve for retirement payments | 13,333 | 17,846 | 34 | % | 4,513 | 1,640 | 57,726 | 69,141 | 20 | % | 11,415 | 6,354 | ||||||||||||||||
- Initial cumulative effect due to the adoption of new accounting standards | (6,507 | ) | — | 6,507 | — | (1,837 | ) | — | 1,837 | — | ||||||||||||||||||
EBITDA | 124,934 | 151,608 | 21 | % | 26,674 | 13,933 | 622,877 | 782,043 | 26 | % | 159,166 | 71,872 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 20/38 | |||
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PEMEX | Investor Relations |
Total Assets
As of December 31, 2006, total assets reached Ps. 1,210.4 billion (US$111.2 billion), representing a 12%, or Ps. 125.5 billion, increase as compared to total assets as of December 31, 2005. The changes in the components of total assets were as follows:
• cash and cash equivalents increased by 50%, or Ps. 63.0 billion,
• properties and equipment increased by 6%, or Ps. 40.3 billion,
• accounts receivable increased by 14%, or Ps. 17.8 billion,
• the value of inventories increased by 13%, or Ps. 6.9 billion,
• financial derivative instruments increased by 12%, or Ps. 0.4 billion, and
• other assets decreased by 2.6%, or Ps. 2.9 billion. |
Total Liabilities
Total liabilities increased by 5%, to Ps. 1,172.9 billion (US$107.8 billion):
• short-term liabilities increased by 3%, or Ps. 5.1 billion, to Ps. 176.2 billion (US$16.2 billion), primarily as a result of an increase in long- term debt with maturities of less than twelve months, and
• long-term liabilities increased by 6%, or Ps. 55.1 billion, to Ps. 996.7 billion (US$91.6 billion), mainly due to an increase in the reserve for retirement payments, pensions and seniority premiums. | ||
Reserve for Retirement Payments | The reserve for retirement payments, pensions and seniority premiums increased by 16%, from Ps. 390.9 billion to Ps. 454.3 billion (US$41.8 billion) according to actuarial studies. |
Equity
PEMEX’s equity increased by Ps. 65.4 billion, from negative Ps. 28.0 billion as of December 31, 2005, to Ps. 37.5 billion (or US$3.4 billion) as of December 31, 2006. The change in equity was due to:
• a payment from the government to PEMEX in the amount of Ps. 47.0 billion which consisted of Ps. 45.6 billion and Ps. 143 million that were paid in accordance with the Federal Expenditure Budget for the 2006 and 2005 fiscal years, respectively,
• a decrease of Ps. 26.4 billion in cumulative net losses, due to net income generated in 2006,
• a decrease of Ps. 18.2 billion in the reserve for retirement payments, pensions and seniority premiums,
• an increase of Ps. 5.1 billion due in the restatement of equity this line item is linked to the restatement of fixed assets, and
• an increase of Ps. 5.1 billion in comprehensive income due to the application of the Bulletin C-10 “Derivative Financial Instruments and Hedging Operations”. |
PEMEX financial results report as of December 31, 2006 | 21/38 | |||
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Results by Segment
Operating Income | In 2006, operating income totaled Ps.579.1 billion (US$53.2 billion), representing a 12% increase as compared to 2005 operating income of Ps. 519.0 billion.
• Pemex - Exploration and Production’s operating income totaled Ps. 660.9 billion (US$60.7 billion), Ps. 114.0 billion higher than its operating income in 2005.
• Pemex - - Gas and Basic Petrochemicals’ operating income totaled Ps. 9.2 billion (US$0.8 billiion), Ps.1.1 billion less than its operating income in 2005.
• the operating loss of Pemex Refining totaled Ps. 77.0 billion (US$7.1 billion), Ps. 28.1 billion greater than its operating loss in 2005.
• the operating loss of Pemex Petrochemicals totaled Ps. 11.7 billion (US$1.1 billion), Ps. 2.2 billion greater than its operating loss in 2005. |
Changes in Financial Position
Funds Provided by Operating Activities | In 2006, funds provided by operating activities totaled Ps. 129.0 billion (US$11.9 billion). The increase of Ps. 76.9 billion was primarily due to an increase in net income. | |
Funds Provided by Financing Activities | In 2006, funds provided by financing activities totaled Ps. 41.0 billion (US$0.9 billion). The Ps. 33.1 billion decrease was mainly due to the decrease in offerings of debt securities. | |
Funds Used in Investing Activities | In 2006, funds used in investing activities totaled Ps. 107.0 billion (US$9.8 billion), the increase was primarily a result of the increase in fixed assets. |
PEMEX financial results report as of December 31, 2006 | 22/38 | |||
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Investing and Financing and Activities
Investing Activities
2006 | During the fourth quarter of 2006, US$1.0 billion of additional resources were approved for investment in exploration and production activities. As a result, total investment increased to US$13.8 billion, as compared to US$10.8 in 2005, out of which PIDIREGAS investments represented US$12.0 billion. | |
2007 | Estimated capital expenditures for 2007 total Ps. 155.4 billion (US$13.9 billion), out of which PIDIREGAS investments represent Ps. 154.9 billion (US$13.8 billion).
The allocation of total capital expenditures by line of business is as follows:
• Ps. 137.4 billion for Exploration and Production (Ps. 19.0 billion for exploration and Ps. 118.4 billion for development),
• Ps. 15.4 billion for Refining,
• Ps. 1.5 billion for Gas and Basic Petrochemicals, and
• Ps. 1.0 billion for Petrochemicals.
These amounts are subject to budgetary adjustments. |
Financing Requirements
2006 | During 2006, US$4.4 billion of new financing was raised as follows:
• US$2.0 billion from export credit agencies (ECA’s),
• US$1.5 billion from the international capital markets, and
• US$0.9 billion from the Mexican capital market. | |
2007 | PEMEX is planning to rise between US$1 and US$2 billion to finance its investment program for 2007. As in previous years, this amount is subject to change as a result of several factors, including market conditions. |
PEMEX financial results report as of December 31, 2006 | 23/38 | |||
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Capital Markets
Master Trust | The Pemex Project Funding Master Trust, a Delaware trust controlled by, and whose debt is guaranteed by PEMEX, entered into the following financings during 2006:
• On February 2, 2006, it reopened two issuances originally issued on June 8, 2005, in a total amount of US$1,500 million divided in two tranches:
• US$750 million of its 5.75% notes due in 2015, and
• US$750 million of its 6.625% bonds due in 2035.
• On May 3, 2006, it signed a US$1,250 million syndicated revolving credit facility maturing in three years. This line can be used either by the Pemex Project Funding Master Trust or by Petróleos Mexicanos
• On May 18, 2006, it closed a US$4,250 million syndicated term loan which was used to refinance the syndicated loan signed on March 22, 2005. It is divided into two tranches:
• Tranche A: US$1,500 million maturing in five years, and
• Tranche B: US$2,750 million with a final maturity in seven years. | |
F/163 | On June 16, 2006, the Fideicomiso F/163, a Mexican trust whose debt is guaranteed by PEMEX, issued Ps. 10 billion of notes due in seven years. These notes (CEBURES) will pay a monthly coupon rate equivalent to the Mexican interbank rate (TIIE) less 0.07% per annum. |
Total Debt
Total Amount | As of December 31, 2006, PEMEX’s total consolidated debt, including accrued interest, totaled Ps. 569.3 billion (US$52.3 billion).17 This figure represents an increase of 2%, or Ps.9.8 billion, as compared to total debt at December 31, 2005, primarily as a result of the increase in long-term debt with maturities of less than twelve months.
Total debt with less than twelve months maturity totaled Ps. 63.8 billion (US$5.9 billion) as of December 31, 2006.
Total long-term debt totaled Ps. 505.5 billion (US$46.5 billion) as of December 31, 2006. | |
Net Debt | Net debt, or the difference between total debt and cash equivalents, decreased by Ps. 53.1 billion, to Ps. 380.6 billion (US$35.0 billion) as of December 31, 2006, from Ps. 433.8 billion in 2005. |
17 | Total consolidated debt is comprised by documented debt of Petróleos Mexicanos, the Pemex Project Funding Master Trust, the Fideicomiso F/163, RepCon Lux S.A. and Pemex Finance, Ltd |
PEMEX financial results report as of December 31, 2006 | 24/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table 19
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated total debt
As of December 31, | ||||||||||||
2005 | 2006 | Change | 2006 | |||||||||
(Ps. mm) | (US$mm) | |||||||||||
Total debt | 559,482 | 569,314 | 2 | % | 9,833 | 52,322 | ||||||
Short-term | 37,558 | 63,840 | 70 | % | 26,282 | 5,867 | ||||||
Long-term | 521,924 | 505,475 | -3 | % | (16,449 | ) | 46,455 | |||||
Cash & cash equivalents | 125,724 | 188,690 | 50 | % | 62,965 | 17,341 | ||||||
Total net debt | 433,758 | 380,625 | -12 | % | (53,133 | ) | 34,981 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
Note: Numbers may not total due to rounding. |
Maturity Profile | The following table shows the maturity profile of PEMEX’s total debt by currency: |
Table 20
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Maturity profile
As of December 31, | ||||
(Ps. mm) | US$mm | |||
Documented debt in pesos | 111,785 | 10,273 | ||
2007 | 13,928 | 1,280 | ||
2008 | 4,944 | 454 | ||
2009 | 13,944 | 1,282 | ||
2010 | 20,085 | 1,846 | ||
2011 and beyond | 58,884 | 5,412 | ||
Documented debt in other currencies | 457,529 | 42,048 | ||
2007 | 49,912 | 4,587 | ||
2008 | 50,550 | 4,646 | ||
2009 | 54,074 | 4,970 | ||
2010 | 42,147 | 3,873 | ||
2011 and beyond | 260,845 | 23,973 | ||
Total debt | 569,314 | 52,322 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 25/38 | |||
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Duration | The following table presents average duration of debt exposure. |
Table 21
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Average duration of debt exposure
As of December 31, | |||||||
2005 | 2006 | Change | |||||
(Years) | |||||||
U.S. Dollars | 4.1 | 4.2 | 0.03 | ||||
Mexican pesos | 2.2 | 1.7 | (0.5 | ) | |||
Euros | 1.4 | 3.6 | 2.3 | ||||
Japanese yen | 2.4 | 1.8 | (0.5 | ) | |||
Swiss francs | 0.2 | 0.0 | (0.2 | ) | |||
Total | 3.7 | 3.6 | (0.2 | ) |
Note: | Numbers may not total due to rounding. |
Interest Rate Risk | PEMEX´s policy is to maintain a balance between fixed and floating rate liabilities in order to mitigate the impact of fluctuations in interest rates. As of December 31, 2006, approximately 59% of PEMEX’s debt exposure carried fixed interest rates, and the remaining 41% carried floating rates. | |
Debt Exposure | The following table sets forth PEMEX’s debt exposure to currency and interest rate risk: |
Table 22
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Debt exposure
(excluding accrued interest)
As of December 31, | ||||||||||||||||||
2005 | 2006 | 2005 | 2006 | 2005 | 2006 | |||||||||||||
By currency | Percentage At fixed rate | At floating rate | ||||||||||||||||
U.S. Dollars | 79.1 | % | 76.0 | % | 64.8 | % | 65.1 | % | 35.2 | % | 34.9 | % | ||||||
Mexican pesos | 20.8 | % | 23.9 | % | 48.8 | % | 38.8 | % | 51.2 | % | 61.2 | % | ||||||
Euros | 0.003 | % | 0.001 | % | 32.0 | % | 100.0 | % | 68.0 | % | 0.0 | % | ||||||
Japanese yen | 0.14 | % | 0.10 | % | 100.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | ||||||
Swiss francs | 0.0002 | % | 0.0 | % | 0.0 | % | 0.0 | % | 100.0 | % | 0.0 | % | ||||||
Total | 100.0 | % | 100.0 | % | 61.5 | % | 58.8 | % | 38.5 | % | 41.2 | % |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 26/38 | |||
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Other Relevant Topics
Appointments | On December 4, 2006, Jesús Reyes Heroles G. G. was appointed Director General of Petróleos Mexicanos, replacing Luis Ramírez Corzo.
The following appointments were ratified at the subsidiary entity level:
• Carlos Morales Gil as Director General of Pemex – Exploration and Production;
• Roberto Ramírez Soberón as Director General of Pemex - Gas and Basic Petrochemicals; and
• Rafael Beverido Lomelín as Director General of Pemex - Petrochemicals.
In addition, the following appointments were announced:
• José Antonio Ceballos as Director General of Pemex – Refining; and
• Heber Cinco Ley, Director General of the Mexican Petroleum Institute.
On February 27, 2007 the Board of Directors ratified the following executives in the:
Direction General:
• Roberto Ortega Lomelín, as Executive Coordinator of the Director General;
• Mariano Ruiz Funes, as Chief of Staff of the Director General; and
• Luis López González, as Private Secretary of the Director General.
Corporate Direction of Operations:
• Raúl Livas Elizondo, as Corporate Director of Operations;
• Rolando Alejandro Hernández Albín, as Deputy of Business and Technology Processes;
• Guillermo Camacho Uriarte, as Deputy Director of Operational Discipline, Safety, Health and Environmental Protection; and
• Raúl Mendoza Mata, as Deputy Director of Supplies.
In addition, the following appointments were announced in the Corporate Division:
• Ernesto Ríos Montero, as Corporate Director of Engineering and Project Development;
• Enrique Rodríguez Betancourt, as Deputy Director of Pipeline Transport;
• Yolanda G. Valladares Valle, as Corporate Manager of Social Development; and
• Carlos Ramírez Fuentes, as Corporate Manager of Communications.
The following appointments were announced in Pemex – Exploration and Production:
• Antonio Escalera Alcocer, as Deputy Technical Director of Exploration;
• Teódulo Gutiérrez Acosta, as Deputy Technical Director of Exploitation;
• Jorge Fernández Venegas, as Deputy Director of the North Region;
• Jorge Serrano Lozano, as Deputy Director of the South Region; and
• Adrián Oviedo Pérez, in charge of COMESA.
The following appointments were announced in Pemex – Gas and Basic Petrochemicals:
• Mario Nieto Garza, as Deputy Director of Pipelines; and
• Miguel Bueno, as Deputy Director of LPG Gas and Basic Petrochemicals.
The following appointments were announced in Pemex – Refining:
• Claudio Urencio Castro, as Deputy Director of Storage and Distribution; and
• Antonio Álvarez Moreno, as Deputy Director of Industrial Safety and Environmental Protection. |
PEMEX financial results report as of December 31, 2006 | 27/38 | |||
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Appointments in the Board of Directors | The following appointments to the Board of Directors were announced on February 27, 2007:
• Georgina Kessel Martínez, President and Minister of Energy;
• Juan Rafael Elvira Quesada, Advisor and Minister of the Environment and Natural Resources;
• Agustín Guillermo Carstens Carstens, Advisor and Minister of Finance and Public Credit;
• Eduardo Sojo Garza Aldape. Advisor and Minister of Economy;
• Luis Téllez Kuenzler, Advisor and Minister of Communications and Transport; and
• Gerardo Ruiz Mateos, Advisor and General Coordinator of Cabinets and Special Projects of the Presidency of the Republic.
In addition, five representatives of the Union of Petroleum Workers of the Mexican Republic were appointed to the Board of Directors. | |
Clean Industry Certifications | Petróleos Mexicanos received 86 Clean Industry Certifications from the Mexican Environmental Protection Agency (Profepa). The certifications were granted to five areas of Pemex -Exploration and Production:
• Southwest Marine Region
• Northeast Marine Region
• Macuspana Asset, of the South Region
• Veracruz Asset, of the North Region
• Unit of Drilling and Maintenance Wells | |
Carbon emissions trading | On march 4, 2007, PEMEX and STATOIL signed the first agreement for carbon emissions trading, its objective is to reduce 1.6 million tons of green house emissions within the next 10 years. | |
Zero Incapacitating Personal Injury Accidents | As of February, 19, 2007, there have been no incapacitating personal injury accidents in Pemex-Gas and Basic Petrochemicals in 12 months. This was a result of the improvements in the areas of safety, health and environmental protection matters.
Improvements in the area of safety, health and environmental protection began 10 years ago with the implementation of the Safety, Health and Environmental Program (PROSSPA). The Program includes the implementation of 12 international best practices in safety matters and other important tools, such as operational discipline, management of safety process and mechanical integrity, as well as quality assurance. The program also includes an intense training regime. |
PEMEX financial results report as of December 31, 2006 | 28/38 | |||
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Incidents | During the fourth quarter of 2006, the following incidents occurred in the states of Morelos, Veracruz, Oaxaca, Tamaulipas and Tabasco:
• On October 17, 2006, an explosion occurred at PEMEX’s Quetzalcoatl tanker. The incident occurred while the contracting company, López García S.A. de C.V., was repairing the loading crane of the ship at the Pajaritos Maritime Terminal in Coatzacoalcos, Veracruz. The tanker was not in operation and was not loaded with any fuel. The explosion was caused by a spark that had contact with gas residuals in the ventilation system of the tanker. Seven people were killed in this incident.
• On October 24, 2006, a fire occurred in the high vacuum plant number one in the Antonio Dovalí Jaime Refinery, located in Salina Cruz, Oaxaca. No personal injuries were sustained and production was not altered.
• On October 28, 2006, a fuel oil leakage of approximately 1,600 liters occurred in the rights of way of the Revolución Verde community in Ciudad Madero, Tamaulipas. Technical personnel of the company repaired the damaged pipeline within two days after the incident occurred and carried out an environmental clean-up in the streets and houses affected.
• On November 11, 2006, vandalism caused a hydrocarbon leak of approximately 70 liters in the Sánchez Magallanes field at La Trinidad community of the Cárdenas, Tabasco municipality. No material or personal damages were sustained. |
PEMEX financial results report as of December 31, 2006 | 29/38 | |||
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Annex
Table A1
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Crude oil production by selected fields (quarterly)
2004 | 2005 | 2006 | ||||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||||||||
(Mbd) | ||||||||||||||||||||||||||||||||
Total | 3,012 | 3,127 | 3,177 | 3,371 | 3,382 | 3,422 | 3,382 | 3,346 | 3,316 | 3,425 | 3,286 | 3,306 | 3,345 | 3,329 | 3,247 | 3,104 | ||||||||||||||||
Northeast Marine Region | 1,763 | 1,986 | 2,152 | 2,416 | 2,440 | 2,479 | 2,436 | 2,408 | 2,375 | 2,450 | 2,305 | 2,300 | 2,334 | 2,289 | 2,174 | 2,026 | ||||||||||||||||
Akal and Nohoch | 1,420 | 1,673 | 1,851 | 2,054 | 2,085 | 2,110 | 2,074 | 2,047 | 2,067 | 2,041 | 1,905 | 1,883 | 1,882 | 1,797 | 1,698 | 1,564 | ||||||||||||||||
Ku | 205 | 176 | 185 | 197 | 185 | 194 | 197 | 189 | 159 | 213 | 213 | 225 | 244 | 278 | 282 | 272 | ||||||||||||||||
Zaap | 30 | 26 | 21 | 41 | 53 | 53 | 54 | 68 | 53 | 77 | 75 | 71 | 82 | 76 | 66 | 62 | ||||||||||||||||
Maloob | 50 | 45 | 35 | 50 | 51 | 55 | 55 | 50 | 38 | 51 | 48 | 50 | 57 | 64 | 50 | 45 | ||||||||||||||||
Chac | 18 | 22 | 17 | 20 | 23 | 23 | 11 | 11 | 10 | 13 | 12 | 12 | 13 | 13 | 12 | 11 | ||||||||||||||||
Kutz | - | 5 | 9 | 13 | 9 | 12 | 13 | 13 | 10 | 14 | 11 | 11 | 12 | 12 | 12 | 12 | ||||||||||||||||
Otros | 40 | 40 | 32 | 41 | 34 | 33 | 31 | 30 | 37 | 40 | 39 | 48 | 44 | 50 | 56 | 59 | ||||||||||||||||
Southwest Marine Region | 622 | 554 | 452 | 398 | 389 | 391 | 388 | 384 | 381 | 394 | 390 | 419 | 428 | 454 | 498 | 519 | ||||||||||||||||
Caan | 182 | 163 | 133 | 114 | 107 | 109 | 109 | 106 | 102 | 100 | 95 | 94 | 93 | 90 | 86 | 84 | ||||||||||||||||
Chuc | 140 | 118 | 107 | 99 | 92 | 93 | 93 | 94 | 98 | 103 | 99 | 112 | 111 | 106 | 110 | 99 | ||||||||||||||||
Abkatún | 108 | 103 | 80 | 69 | 59 | 57 | 52 | 50 | 49 | 47 | 41 | 38 | 34 | 31 | 29 | 27 | ||||||||||||||||
Taratunich | 50 | 43 | 39 | 36 | 35 | 33 | 33 | 32 | 27 | 24 | 17 | 19 | 24 | 33 | 39 | 40 | ||||||||||||||||
Pol | 74 | 62 | 42 | 35 | 30 | 28 | 23 | 21 | 19 | 18 | 16 | 14 | 14 | 13 | 13 | 15 | ||||||||||||||||
Otros | 69 | 64 | 51 | 44 | 67 | 72 | 78 | 81 | 86 | 102 | 122 | 142 | 152 | 181 | 220 | 255 | ||||||||||||||||
South Region | 550 | 509 | 498 | 483 | 474 | 471 | 475 | 471 | 479 | 495 | 508 | 504 | 499 | 501 | 491 | 474 | ||||||||||||||||
Puerto Ceiba | 17 | 21 | 38 | 46 | 70 | 79 | 82 | 77 | 77 | 81 | 81 | 70 | 63 | 59 | 52 | 45 | ||||||||||||||||
Samaria | 83 | 83 | 71 | 73 | 66 | 64 | 60 | 59 | 60 | 64 | 68 | 69 | 66 | 64 | 64 | 61 | ||||||||||||||||
Iride | 45 | 43 | 43 | 44 | 45 | 46 | 46 | 48 | 48 | 50 | 51 | 52 | 51 | 50 | 46 | 46 | ||||||||||||||||
Jujo | 61 | 56 | 56 | 51 | 47 | 45 | 45 | 41 | 45 | 52 | 51 | 51 | 54 | 58 | 59 | 55 | ||||||||||||||||
Cunduacán | 24 | 22 | 21 | 23 | 24 | 24 | 28 | 28 | 28 | 30 | 27 | 25 | 23 | 23 | 21 | 18 | ||||||||||||||||
Tecominoacán | 32 | 29 | 27 | 23 | 21 | 19 | 18 | 19 | 20 | 22 | 23 | 25 | 28 | 31 | 30 | 26 | ||||||||||||||||
Cárdenas | 23 | 20 | 16 | 14 | 14 | 14 | 13 | 11 | 11 | 14 | 18 | 18 | 19 | 21 | 18 | 15 | ||||||||||||||||
Sen | 30 | 33 | 31 | 21 | 9 | 11 | 15 | 16 | 17 | 18 | 19 | 21 | 22 | 22 | 21 | 21 | ||||||||||||||||
Pijije | 4 | 5 | 9 | 12 | 12 | 11 | 11 | 10 | 10 | 12 | 14 | 14 | 14 | 15 | 15 | 14 | ||||||||||||||||
Jolote | 20 | 16 | 15 | 12 | 12 | 11 | 11 | 10 | 9 | 10 | 10 | 9 | 9 | 9 | 9 | 8 | ||||||||||||||||
Cactus | 11 | 12 | 10 | 12 | 11 | 11 | 11 | 10 | 11 | 9 | 9 | 8 | 8 | 9 | 9 | 8 | ||||||||||||||||
Bellota | 10 | 9 | 10 | 8 | 10 | 10 | 9 | 9 | 10 | 9 | 9 | 8 | 8 | 8 | 8 | 7 | ||||||||||||||||
Chinchorro | 10 | 10 | 9 | 10 | 10 | 9 | 8 | 8 | 8 | 8 | 8 | 7 | 7 | 7 | 7 | 8 | ||||||||||||||||
Yagual | 4 | 4 | 4 | 4 | 4 | 5 | 7 | 10 | 11 | 11 | 13 | 12 | 11 | 10 | 11 | 11 | ||||||||||||||||
Rodador | 2 | 2 | 3 | 7 | 7 | 7 | 6 | 5 | 5 | 5 | 5 | 6 | 4 | 4 | 5 | 5 | ||||||||||||||||
Otros | 174 | 144 | 136 | 122 | 111 | 107 | 107 | 108 | 108 | 101 | 104 | 110 | 111 | 112 | 117 | 123 | ||||||||||||||||
North Region | 77 | 79 | 75 | 74 | 80 | 80 | 82 | 83 | 81 | 86 | 84 | 83 | 84 | 85 | 84 | 85 | ||||||||||||||||
Poza Rica | 10 | 11 | 10 | 10 | 10 | 11 | 12 | 11 | 10 | 10 | 10 | 9 | 10 | 10 | 10 | 10 | ||||||||||||||||
Arenque | 6 | 8 | 8 | 9 | 8 | 8 | 8 | 9 | 10 | 10 | 9 | 9 | 8 | 9 | 8 | 8 | ||||||||||||||||
Agua Fría | 3 | 2 | 2 | 2 | 6 | 6 | 6 | 8 | 6 | 6 | 5 | 6 | 7 | 8 | 8 | 6 | ||||||||||||||||
Tajín | 2 | 1 | 1 | 3 | 6 | 6 | 6 | 5 | 6 | 6 | 6 | 6 | 6 | 5 | 5 | 5 | ||||||||||||||||
Tamaulipas | 8 | 8 | 7 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||
Constituciones | 7 | 7 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||
Otros | 42 | 41 | 40 | 39 | 39 | 38 | 40 | 38 | 39 | 43 | 43 | 43 | 43 | 43 | 44 | 47 |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 30/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table A2
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Natural gas production by selected fields (quarterly)
2004 | 2005 | 2006 | ||||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||||||||
(MMcfd) | ||||||||||||||||||||||||||||||||
Total | 4,679 | 4,511 | 4,423 | 4,498 | 4,557 | 4,570 | 4,577 | 4,586 | 4,640 | 4,861 | 4,839 | 4,928 | 5,094 | 5,281 | 5,478 | 5,565 | ||||||||||||||||
Northeast Marine Region | 737 | 794 | 831 | 940 | 948 | 959 | 945 | 938 | 918 | 965 | 914 | 915 | 931 | 958 | 923 | 870 | ||||||||||||||||
Akal and Nohoch | 543 | 610 | 676 | 750 | 761 | 770 | 757 | 747 | 755 | 745 | 695 | 687 | 687 | 698 | 675 | 634 | ||||||||||||||||
Ku | 133 | 123 | 98 | 111 | 102 | 101 | 102 | 98 | 82 | 106 | 109 | 115 | 127 | 152 | 150 | 137 | ||||||||||||||||
Otros | 60 | 61 | 57 | 80 | 85 | 89 | 86 | 93 | 81 | 113 | 110 | 113 | 117 | 108 | 99 | 99 | ||||||||||||||||
Southwest Marine Region | 820 | 736 | 621 | 581 | 609 | 600 | 599 | 602 | 601 | 654 | 656 | 707 | 750 | 810 | 908 | 953 | ||||||||||||||||
Caan | 278 | 258 | 215 | 206 | 222 | 221 | 207 | 212 | 207 | 216 | 205 | 198 | 196 | 189 | 181 | 176 | ||||||||||||||||
Chuc | 177 | 148 | 131 | 119 | 105 | 92 | 92 | 92 | 97 | 108 | 117 | 130 | 118 | 113 | 121 | 109 | ||||||||||||||||
Taratunich | 75 | 67 | 65 | 67 | 69 | 65 | 67 | 62 | 54 | 49 | 32 | 37 | 57 | 73 | 87 | 81 | ||||||||||||||||
Sinan | - | - | - | 1 | 32 | 44 | 57 | 61 | 63 | 80 | 89 | 88 | 94 | 104 | 156 | 136 | ||||||||||||||||
Abkatún | 82 | 78 | 62 | 56 | 52 | 49 | 45 | 42 | 43 | 42 | 33 | 27 | 33 | 31 | 29 | 29 | ||||||||||||||||
Uech | 51 | 45 | 43 | 40 | 39 | 40 | 36 | 32 | 28 | 25 | 22 | 25 | 26 | 28 | 30 | 25 | ||||||||||||||||
Otros | 157 | 139 | 104 | 92 | 91 | 89 | 96 | 101 | 109 | 134 | 160 | 203 | 226 | 272 | 304 | 398 | ||||||||||||||||
South Region | 1,857 | 1,743 | 1,704 | 1,630 | 1,532 | 1,507 | 1,486 | 1,456 | 1,419 | 1,408 | 1,398 | 1,377 | 1,361 | 1,318 | 1,355 | 1,375 | ||||||||||||||||
Muspac | 216 | 212 | 235 | 215 | 171 | 146 | 133 | 128 | 124 | 116 | 117 | 104 | 92 | 86 | 81 | 78 | ||||||||||||||||
Samaria | 113 | 114 | 94 | 99 | 102 | 102 | 106 | 99 | 94 | 89 | 89 | 79 | 78 | 76 | 81 | 76 | ||||||||||||||||
Catedral | 134 | 123 | 124 | 128 | 111 | 104 | 95 | 92 | 82 | 75 | 71 | 68 | 66 | 54 | 53 | 49 | ||||||||||||||||
Giraldas | 96 | 102 | 103 | 96 | 91 | 90 | 87 | 87 | 83 | 78 | 69 | 67 | 64 | 61 | 63 | 63 | ||||||||||||||||
Copano | 79 | 86 | 80 | 82 | 84 | 84 | 74 | 72 | 70 | 68 | 64 | 59 | 60 | 55 | 53 | 51 | ||||||||||||||||
Cunduacán | 64 | 57 | 51 | 55 | 72 | 70 | 72 | 69 | 77 | 90 | 90 | 94 | 99 | 101 | 97 | 92 | ||||||||||||||||
Iride | 68 | 76 | 74 | 77 | 67 | 69 | 68 | 77 | 83 | 92 | 96 | 102 | 109 | 109 | 101 | 106 | ||||||||||||||||
Puerto Ceiba | 11 | 18 | 24 | 29 | 43 | 52 | 58 | 57 | 52 | 54 | 53 | 47 | 43 | 39 | 35 | 32 | ||||||||||||||||
Jujo | 82 | 81 | 71 | 58 | 47 | 46 | 48 | 41 | 46 | 53 | 59 | 59 | 64 | 54 | 54 | 57 | ||||||||||||||||
José Colomo | 63 | 60 | 47 | 37 | 37 | 35 | 35 | 35 | 35 | 35 | 36 | 35 | 32 | 31 | 28 | 29 | ||||||||||||||||
Sen | 86 | 92 | 91 | 64 | 25 | 30 | 38 | 39 | 41 | 45 | 47 | 53 | 56 | 57 | 55 | 55 | ||||||||||||||||
Pijije | 12 | 14 | 26 | 35 | 35 | 32 | 32 | 30 | 29 | 34 | 41 | 42 | 42 | 42 | 43 | 42 | ||||||||||||||||
Luna | 110 | 89 | 85 | 51 | 36 | 33 | 31 | 30 | 30 | 21 | 25 | 21 | 21 | 20 | 17 | 18 | ||||||||||||||||
Tecominoacán | 40 | 37 | 30 | 25 | 30 | 30 | 30 | 33 | 31 | 36 | 33 | 35 | 40 | 41 | 41 | 37 | ||||||||||||||||
Saramako | - | - | 2 | 14 | 21 | 23 | 32 | 36 | 29 | 28 | 25 | 22 | 20 | 19 | 16 | 14 | ||||||||||||||||
Cárdenas | 47 | 35 | 31 | 28 | 24 | 23 | 30 | 29 | 26 | 29 | 40 | 38 | 41 | 41 | 38 | 33 | ||||||||||||||||
Cactus | 21 | 22 | 19 | 25 | 26 | 25 | 27 | 23 | 25 | 23 | 22 | 22 | 20 | 23 | 24 | 19 | ||||||||||||||||
Bellota | 26 | 25 | 28 | 27 | 29 | 30 | 20 | 22 | 26 | 26 | 23 | 24 | 23 | 21 | 21 | 19 | ||||||||||||||||
Otros | 590 | 501 | 489 | 486 | 480 | 481 | 471 | 456 | 438 | 415 | 401 | 405 | 393 | 388 | 450 | 505 | ||||||||||||||||
North Region | 1,266 | 1,238 | 1,268 | 1,347 | 1,469 | 1,504 | 1,547 | 1,590 | 1,703 | 1,834 | 1,871 | 1,930 | 2,052 | 2,196 | 2,292 | 2,366 | ||||||||||||||||
Culebra | 320 | 274 | 219 | 201 | 179 | 164 | 153 | 182 | 182 | 185 | 167 | 153 | 157 | 161 | 171 | 183 | ||||||||||||||||
Cuitláhuac | 122 | 126 | 109 | 91 | 92 | 104 | 129 | 127 | 116 | 115 | 116 | 117 | 121 | 120 | 116 | 112 | ||||||||||||||||
Arcos | 199 | 175 | 148 | 141 | 128 | 115 | 90 | 82 | 76 | 81 | 101 | 109 | 104 | 101 | 100 | 78 | ||||||||||||||||
Cocuite | 18 | 27 | 45 | 90 | 112 | 99 | 102 | 92 | 84 | 77 | 71 | 65 | 57 | 52 | 55 | 52 | ||||||||||||||||
Vistoso | - | - | - | 8 | 59 | 79 | 85 | 95 | 111 | 118 | 119 | 120 | 120 | 116 | 118 | 113 | ||||||||||||||||
Santa Rosalia | 9 | 24 | 63 | 53 | 62 | 66 | 70 | 55 | 56 | 56 | 58 | 71 | 55 | 48 | 46 | 44 | ||||||||||||||||
Corindón | 26 | 40 | 59 | 59 | 62 | 49 | 44 | 44 | 45 | 41 | 36 | 49 | 48 | 49 | 46 | 46 | ||||||||||||||||
Arcabuz | 93 | 57 | 46 | 33 | 38 | 35 | 41 | 47 | 54 | 67 | 76 | 65 | 71 | 77 | 81 | 79 | ||||||||||||||||
Torrecillas | 1 | 5 | 21 | 34 | 36 | 46 | 38 | 36 | 36 | 41 | 41 | 43 | 43 | 35 | 38 | 35 | ||||||||||||||||
Velero | 2 | 9 | 13 | 22 | 41 | 36 | 38 | 38 | 50 | 50 | 49 | 51 | 54 | 65 | 73 | 91 | ||||||||||||||||
Arenque | 27 | 28 | 29 | 30 | 32 | 32 | 33 | 32 | 31 | 32 | 33 | 31 | 32 | 34 | 34 | 34 | ||||||||||||||||
Copite | 47 | 35 | 33 | 27 | 28 | 29 | 30 | 30 | 28 | 27 | 22 | 26 | 27 | 25 | 25 | 25 | ||||||||||||||||
Otros | 402 | 439 | 482 | 557 | 601 | 648 | 693 | 732 | 833 | 945 | 982 | 1,030 | 1,163 | 1,311 | 1,390 | 1,472 |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 31/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table A3
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated balance sheets
As of December 31, | |||||||||||||
2005 | 2006 | Change | 2006 | ||||||||||
(Ps. mm) | (US$mm) | ||||||||||||
Current assets | 304,629 | 392,734 | 29 | % | 88,105 | 36,094 | |||||||
Cash & cash equivalents | 125,724 | 188,690 | 50 | % | 62,965 | 17,341 | |||||||
Accounts receivable | 122,658 | 140,427 | 14 | % | 17,769 | 12,906 | |||||||
Inventories | 52,633 | 59,559 | 13 | % | 6,927 | 5,474 | |||||||
Financial derivative instruments | 3,614 | 4,058 | 12 | % | 444 | 373 | |||||||
Properties and equipment | 669,308 | 709,622 | 6 | % | 40,314 | 65,217 | |||||||
Other assets | 110,881 | 107,998 | -3 | % | (2,883 | ) | 9,925 | ||||||
Total assets | 1,084,818 | 1,210,353 | 12 | % | 125,535 | 111,235 | |||||||
Short-term liabilities | 171,149 | 176,199 | 3 | % | 5,050 | 16,193 | |||||||
Short-term debt(1) | 37,558 | 63,840 | 70 | % | 26,282 | 5,867 | |||||||
Suppliers | 32,216 | 36,520 | 13 | % | 4,305 | 3,356 | |||||||
Accounts payable and accured expenses | 10,810 | 11,995 | 11 | % | 1,185 | 1,102 | |||||||
Taxes payable | 70,762 | 49,244 | -30 | % | (21,518 | ) | 4,526 | ||||||
Financial derivative instruments | 19,804 | 14,601 | -26 | % | (5,204 | ) | 1,342 | ||||||
Long-term liabilities | 941,628 | 996,682 | 6 | % | 55,055 | 91,598 | |||||||
Long-term debt(2) | 521,924 | 505,475 | -3 | % | (16,449 | ) | 46,455 | ||||||
Reserve for retirement payments, pensions and seniority premiums | 390,890 | 454,328 | 16 | % | 63,438 | 41,754 | |||||||
Other non-current liabilities(3) | 26,756 | 33,190 | 24 | % | 6,434 | 3,050 | |||||||
Deferred taxes | 2,058 | 3,690 | 79 | % | 1,632 | 339 | |||||||
Total liabilities | 1,112,777 | 1,172,882 | 5 | % | 60,105 | 107,792 | |||||||
Total equity | (27,959 | ) | 37,471 | 65,430 | 3,444 | ||||||||
Total liabilities & equity | 1,084,818 | 1,210,353 | 12 | % | 125,535 | 111,235 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
(1) | Includes maturities shorter than twelve months of documented debt (Petróleos Mexicanos, the Pemex Project Funding Master Trust, the Mexican Trust F/163, Pemex Finance and RepconLux). |
(2) | Includes maturities longer than twelve months of documented debt (Petróleos Mexicanos, the Pemex Project Funding Master Trust, the Mexican Trust F/163, Pemex Finance and Repcon Lux). |
(3) | Corresponds to the balance of the reserve for dismantlement and abandonment activities, sundry creditors and others. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 32/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table A4
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated income statement
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||
Total sales | 265,947 | 236,226 | -11 | % | (29,721 | ) | 21,710 | 966,284 | 1,058,116 | 10 | % | 91,832 | 97,244 | |||||||||||||||||
Domestic sales(1) | 142,262 | 133,031 | -6 | % | (9,231 | ) | 12,226 | 525,583 | 546,750 | 4 | % | 21,167 | 50,248 | |||||||||||||||||
Exports | 123,685 | 103,195 | -17 | % | (20,490 | ) | 9,484 | 440,701 | 511,366 | 16 | % | 70,665 | 46,996 | |||||||||||||||||
Costs and expenses(2) | 165,704 | 128,929 | -22 | % | (36,775 | ) | 11,849 | 447,313 | 479,059 | 7 | % | 31,745 | 44,027 | |||||||||||||||||
Cost of sales | 147,682 | 105,515 | -29 | % | (42,168 | ) | 9,697 | 375,817 | 402,133 | 7 | % | 26,316 | 36,957 | |||||||||||||||||
Distribution expenses | 6,999 | 6,874 | -2 | % | (125 | ) | 632 | 22,799 | 23,870 | 5 | % | 1,071 | 2,194 | |||||||||||||||||
Administrative expenses | 11,022 | 16,540 | 50 | % | 5,518 | 1,520 | 48,697 | 53,055 | 9 | % | 4,358 | 4,876 | ||||||||||||||||||
Operating income | 100,244 | 107,297 | 7 | % | 7,053 | 9,861 | 518,971 | 579,057 | 12 | % | 60,086 | 53,217 | ||||||||||||||||||
Comprehensive financing cost | 717 | 2,461 | 243 | % | 1,744 | 226 | 4,661 | 22,644 | 386 | % | 17,983 | 2,081 | ||||||||||||||||||
Other expenses (revenues) | 2,157 | (9,638 | ) | (11,795 | ) | (886 | ) | (12,317 | ) | (70,544 | ) | (58,227 | ) | (6,483 | ) | |||||||||||||||
Income before taxes and duties | 97,369 | 114,474 | 18 | % | 17,105 | 10,521 | 526,627 | 626,957 | 19 | % | 100,330 | 57,619 | ||||||||||||||||||
Taxes and duties | 167,186 | 121,377 | -27 | % | (45,809 | ) | 11,155 | 604,164 | 584,459 | -3 | % | (19,705 | ) | 53,714 | ||||||||||||||||
Hydrocarbon duties and other | 164,900 | 121,377 | -26 | % | (43,523 | ) | 11,155 | 583,131 | 584,459 | 0 | % | 1,329 | 53,714 | |||||||||||||||||
Special Tax on Production and Services (IEPS) | 2,286 | — | (2,286 | ) | 21,033 | (21,033 | ) | — | ||||||||||||||||||||||
Initial cumulative effect due to the adoption of new accounting standards | (6,506.9 | ) | — | 6,507 | (1,837 | ) | 1,837 | — | ||||||||||||||||||||||
Net income (loss) | (76,324 | ) | (6,903 | ) | 69,421 | (634 | ) | (79,374 | ) | 42,497 | 121,872 | 3,906 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
(1) | Figures for 2005 include the Special Tax on Production and Services (IEPS), collected by PEMEX and then paid to the Mexican Government (as part of taxes and duties). Sales figures for 2006 do not include the IEPS, because the IEPS rate was negative throughout 2006. |
(2) | Includes the cost of the reserve for retirement payments, pensions and indemnities. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 33/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table A5
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Equity
As of December 31, | |||||||||||||||
2005 | 2006 | Change | 2006 | ||||||||||||
(Ps. mm) | (US$mm) | ||||||||||||||
Total equity | (27,959 | ) | 37,471 | -234 | % | 65,430 | 3,444 | ||||||||
Certificates of contribution “A” | 93,445 | 93,445 | 0 | % | - | 8,588 | |||||||||
Capitalized proceeds | 81,505 | 128,504 | 58 | % | 46,998 | 11,810 | |||||||||
Effect of the reserve for retirement payments | (28,388 | ) | (46,576 | ) | 64 | % | (18,188 | ) | (4,280 | ) | |||||
Comprehensive income | (6,825 | ) | (1,715 | ) | -75 | % | 5,110 | (158 | ) | ||||||
Restatement of equity | 150,227 | 155,293 | 3 | % | 5,066 | 14,272 | |||||||||
Accumulated net income (losses) | (317,923 | ) | (291,480 | ) | -8 | % | 26,444 | (26,788 | ) | ||||||
From prior years | (238,549 | ) | (333,977 | ) | 40 | % | (95,428 | ) | (30,694 | ) | |||||
Net income (loss) for the period | (79,374 | ) | 42,498 | 121,872 | 3,906 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 34/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table A6
Changes in financial position
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated statements of changes in financial position
As of December 31, | |||||||||||||||
2005 | 2006 | Change | 2006 | ||||||||||||
(Ps. mm) | (US$mm) | ||||||||||||||
Operating activities | |||||||||||||||
Net income (loss) | (79,374 | ) | 42,497 | 121,872 | 3,906 | ||||||||||
Charges to operations not requiring the use of funds: | 114,201 | 132,443 | 16 | % | 18,242 | 12,172 | |||||||||
Depreciation and amortization | 54,897 | 63,302 | 15 | % | 8,405 | 5,818 | |||||||||
Other non-cash flow items | 59,303 | 69,141 | 17 | % | 9,837 | 6,354 | |||||||||
Funds from net income (loss) | 34,826 | 174,940 | 402 | % | 140,114 | 16,078 | |||||||||
Changes in working capital: | 17,213 | (45,978 | ) | (63,190 | ) | (4,226 | ) | ||||||||
Accounts, notes receivable and other | 9,571 | (17,769 | ) | (27,339 | ) | (1,633 | ) | ||||||||
Inventories | (14,179 | ) | (2,073 | ) | -85 | % | 12,106 | (191 | ) | ||||||
Intangible asset derived from actuarial computation of labor obligations and other assets | 6,686 | 6,298 | -6 | % | (388 | ) | 579 | ||||||||
Suppliers | 6,064 | 4,305 | -29 | % | (1,759 | ) | 396 | ||||||||
Other liabilities | 9,072 | (36,739 | ) | (45,810 | ) | (3,376 | ) | ||||||||
Funds provided (used) by operating activities | 52,039 | 128,962 | 148 | % | 76,923 | 11,852 | |||||||||
Financing activities | 30,895 | 9,833 | -68 | % | (21,063 | ) | 904 | ||||||||
Bank loans | 14,190 | 61,973 | 337 | % | 47,784 | 5,696 | |||||||||
Securities | 179,877 | 95,900 | -47 | % | (83,977 | ) | 8,814 | ||||||||
Other financing | (29,312 | ) | — | 29,312 | — | ||||||||||
Amortization of bank loans | (58,162 | ) | (131,741 | ) | 127 | % | (73,579 | ) | (12,107 | ) | |||||
Amortization of securities | (43,317 | ) | (3,023 | ) | -93 | % | 40,293 | (278 | ) | ||||||
Amortization of other financing | (32,380 | ) | — | (13,276 | ) | — | |||||||||
Other items | — | (13,276 | ) | (13,276 | ) | (1,220 | ) | ||||||||
Financing activities | 43,277 | 31,200 | -28 | % | (12,077 | ) | 2,867 | ||||||||
Minimum guaranteed dividends paid to the Mexican Government | (11,067 | ) | (15,799 | ) | 43 | % | (4,732 | ) | (1,452 | ) | |||||
Other equity movements | 54,344 | 46,999 | -14 | % | (7,345 | ) | 4,319 | ||||||||
Funds provided (used) by financing activities | 74,173 | 41,033 | -45 | % | (33,139 | ) | 904 | ||||||||
Investing activities | |||||||||||||||
Acquisition of property, plants and equipment | (84,918 | ) | (103,616 | ) | 22 | % | (18,698 | ) | (9,523 | ) | |||||
Sale of other permanent investments | — | (2,839 | ) | (2,839 | ) | (261 | ) | ||||||||
Other items | (6,825 | ) | (575 | ) | -92 | % | 6,250 | (53 | ) | ||||||
Funds provided (used) by investing activities | (91,743 | ) | (107,030 | ) | (15,287 | ) | (9,836 | ) | |||||||
Net increase in cash and cash equivalents | 34,469 | 62,995 | 83 | % | 28,497 | 5,787 | |||||||||
Cash and cash equivalents at the beginning of the year | 91,256 | 125,724 | 38 | % | 34,469 | 11,554 | |||||||||
Cash and cash equivalents at the end of the year | 125,724 | 188,689 | 50 | % | 62,965 | 17,341 | |||||||||
Funds provided (used) by operating activities | 52,039 | 128,962 | 148 | % | 76,923 | 11,852 | |||||||||
Funds provided (used) by investing activities | (91,743 | ) | (107,030 | ) | 17 | % | (15,287 | ) | (9,836 | ) | |||||
Free cash-flow** | (39,704 | ) | 21,932 | 61,636 | 2,016 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
** | Free cashflow and discretionary free cashflow are not registered under the Financial Information Regulations (NIF) but are reconciled to NIF as set forth above. |
Note: | Numbers may not total due to rounding. |
PEMEX financial results report as of December 31, 2006 | 35/38 | |||
www.pemex.com |
PEMEX | Investor Relations |
Table A7
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Total sales, net income (loss) and total assets by segment
Figures in millions of constant pesos as of December 31, 2006
Exploration and Production | Refining(1) | Gas and Basic Petrochemicals | Petrochemicals | Subsidiary Companies and Corporate | Intersegment Eliminations | Total | ||||||||||||||
Twelve months ending December 31, 2006 |
| |||||||||||||||||||
Total sales | 855,228 | 437,148 | 213,713 | 30,160 | 672,572 | (1,150,705 | ) | 1,058,116 | ||||||||||||
External clients | — | 392,231 | 133,664 | 20,855 | 511,366 | — | 1,058,116 | |||||||||||||
Intersegment | 855,228 | 44,917 | 80,049 | 9,305 | 161,206 | (1,150,705 | ) | — | ||||||||||||
Operating income (loss) | 660,949 | (77,033 | ) | 9,169 | (11,652 | ) | (2,827 | ) | 452 | 579,058 | ||||||||||
Net income (loss) | 66,148 | (31,094 | ) | 7,429 | (18,029 | ) | 51,427 | (33,383 | ) | 42,498 | ||||||||||
As of December 31, 2006 |
| |||||||||||||||||||
Assets | 1,053,619 | 345,399 | 124,880 | 70,090 | 1,965,767 | (2,349,402 | ) | 1,210,353 | ||||||||||||
Twelve months ending December 31, 2005 |
| |||||||||||||||||||
Total sales | 745,320 | 386,318 | 225,675 | 30,210 | 565,188 | (986,427 | ) | 966,284 | ||||||||||||
External clients | — | 346,507 | 139,735 | 21,036 | 437,973 | 21,033 | 966,284 | |||||||||||||
Intersegment | 745,320 | 39,811 | 85,940 | 9,174 | 127,215 | (1,007,460 | ) | — | ||||||||||||
Operating income (loss) | 546,995 | (48,888 | ) | 10,292 | (9,427 | ) | (21,243 | ) | 41,242 | 518,971 | ||||||||||
Net income (loss) | (18,988 | ) | (55,425 | ) | 6,953 | (17,205 | ) | (73,761 | ) | 79,052 | (79,374 | ) | ||||||||
As of December 31, 2005 |
| |||||||||||||||||||
Total assets | 877,767 | 308,811 | 100,928 | 53,820 | 1,565,875 | (1,822,383 | ) | 1,084,818 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
(1) | External clients sales of Refining are net of IEPS in 2005. Refining did not collect IEPS in 2006, because the IEPS tax rate was negative in 2006. |
Note: | Numbers may not total due to rounding. |
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www.pemex.com |
PEMEX | Investor Relations |
Table A8
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Cash payment of taxes (nominal figures)
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||
Total taxes and duties | 187,161 | 103,497 | -45 | % | (83,664 | ) | 9,512 | 616,041 | 668,966 | 9 | % | 52,925 | 61,480 | |||||||||||||
Hydrocarbon duties and other | 153,205 | 101,031 | -34 | % | (52,175 | ) | 9,285 | 543,568 | 665,701 | 22 | % | 122,133 | 61,180 | |||||||||||||
Excess gains duty | 33,917 | 2,358 | -93 | % | (31,559 | ) | 217 | 54,298 | 6,515 | -88 | % | (47,783 | ) | 599 | ||||||||||||
Special Tax on Production and Services (IEPS) | 39 | 108 | 181 | % | 70 | 10 | 18,174 | (3,250 | ) | -118 | % | (21,424 | ) | (299 | ) |
Note: | Numbers may not total due to rounding. |
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PEMEX | Investor Relations |
If you need to contact Investor Relations or to be included in the distribution list, please call or send an e-mail to:
Telephone: (52 55) 1944 9700
Voice mail: (52 55) 1944 2500 ext. 59412
ri@dcf.pemex.com
Celina Torres
ctorresu@dcf.pemex.com
Rebeca González
rgonzalez@dcf.pemex.com
Elizabeth Osman
eosman@dcf.pemex.com
Paulina Nieto
pnietob@dcf.pemex.com
Andrés Brügmann
abrugmann@dcf.pemex.com
Armando Acosta
aacosta@dcf.pemex.com
Guillermo Regalado
gregalado@dcf.pemex.com
PEMEX is Mexico’s national oil and gas company. Created in 1938, it is the exclusive producer of Mexico’s oil and gas resources. The operating subsidiary entities are Pemex Exploration and Production, Pemex Refining, Pemex Gas and Basic Petrochemicals and Pemex Petrochemicals. The principal subsidiary company is PMI, its international trading arm.
Amounts in US dollars are translated at the December 31, 2006 exchange rate of Ps. 10.881 per US dollar.
This report contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the National Banking and Securities Commission and the Securities and Exchange Commission, in our annual report, in our proxy statements, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties.
We may include forward-looking statements that address, among other things, our:
• | drilling and other exploration activities; |
• | import and export activities; |
• | projected and targeted capital expenditures and other costs, commitments and revenues; and liquidity. |
Actual results could differ materially from those projected in such forward-looking statements as a result of various factors that may be beyond our control. These factors include, but are not limited to:
• | changes in international crude oil and natural gas prices; |
• | effects on us from competition; |
• | limitations on our access to sources of financing on competitive terms; |
• | significant economic or political developments in Mexico; |
• | developments affecting the energy sector; and |
• | changes in our regulatory environment. |
Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of their dates, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.
These risks and uncertainties are more fully detailed in PEMEX’s most recent Form 20-F filing, as amended, with the US Securities and Exchange Commission (www.sec.gov) and the PEMEX Prospectus filed with the National Banking and Securities Commission (CNBV) and available through the Mexican Stock Exchange (www.bmv.com.mx). These factors could cause actual results to differ materially from those contained in any forward-looking statement.
The US Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document, such as total reserves, probable reserves and possible reserves, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, as amended, “File No. 0-99”, available from us atwww.pemex.com or Marina Nacional 329 Floor 38 Col. Huasteca, Mexico City 11311 or at (52 55) 1944 9700. You can also obtain this Form from the SEC by calling 1-800-SEC-0330.
EBITDA, free cash-flow and discretionary cash-flow are non-GAAP measures.
PEMEX financial results report as of December 31, 2006 | 38/38 | |||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Petróleos Mexicanos | ||
By: | /s/ Mauricio Alazraki Pfeffer | |
Mauricio Alazraki Pfeffer Managing Director of Finance and Treasury |
Date: March 22, 2007
FORWARD-LOOKING STATEMENTS
This report contains words, such as “believe”, “expects,” “anticipate” and similar expressions that identify forward-looking statements, which reflect our views about future events and financial performance. We have made forward-looking statements that address, among other things, our:
• | drilling and other exploration activities; |
• | import and export activities; |
• | projected and targeted capital expenditures and other costs, commitments and revenues; and |
• | liquidity. |
Actual results could differ materially from those projected in such forward-looking statements as a result of various factors that may be beyond our control. These factors include, but are not limited to:
• | changes in international crude oil and natural gas prices; |
• | effects on us from competition; |
• | limitations on our access to sources of financing on competitive terms; |
• | significant economic or political developments in Mexico; |
• | developments affecting the energy sector; and |
• | changes in our regulatory environment. |
Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of their dates, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.