SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-99
Colonia Huasteca
Mexico, D.F. 11311
Mexico
![(PEMEX LOGO)](https://capedge.com/proxy/6-K/0001362310-07-001648/c70909c7090901.gif)
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 audited consolidated financial results as of December 31, 2006. | ||||
2006 Financial Highlights | l | Total sales increased by 10%, as compared to 2005, reaching an unprecedented record of Ps. 1,062.5 billion as of December 31, 2006 purchasing power parity (US$97.6 billion)2 | ||
l | Income before taxes and duties increased by 19%, as compared to 2005, to Ps. 628.1 billion (US$57.7 billion) | |||
l | Taxes and duties were Ps. 582.9 billion (US$53.6 billion) | |||
l | EBITDA increased by 25%, as compared to 2005, to Ps. 786.2 billion (US$71.9 billion) | |||
l | Net income was Ps. 45.3 billion (US$4.2 billion) in 2006 | |||
4Q06 Financial Highlights | l | Total sales decreased by 10%, as compared to the fourth quarter of 2005, reaching Ps. 240.6 billion as of December 31, 2006 purchasing power parity (US$22.1 billion) | ||
l | Income before taxes and duties increased by 19%, as compared to the fourth quarter of 2005, to Ps. 115.6 billion (US$10.6 billion) | |||
l | EBITDA increased by 23%, as compared to the fourth quarter of 2005, to Ps. 153.2 billion (US$13.9 billion) | |||
l | Net loss was Ps. 4.1 billion (US$0.4 billion) in the fourth quarter of 2006 |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Financial results summary
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Total sales | 265,947 | 240,605 | -10 | % | (25,342 | ) | 22,112 | 966,284 | 1,062,495 | 10 | % | 96,211 | 97,647 | |||||||||||||||||||||||||||
Domestic sales(1) | 142,262 | 133,019 | -6 | % | (9,243 | ) | 12,225 | 525,583 | 546,738 | 4 | % | 21,155 | 50,247 | |||||||||||||||||||||||||||
Exports | 123,685 | 107,586 | -13 | % | (16,099 | ) | 9,888 | 440,701 | 515,757 | 17 | % | 75,056 | 47,400 | |||||||||||||||||||||||||||
Income before taxes and duties(1) | 97,369 | 115,624 | 19 | % | 18,255 | 10,626 | 526,627 | 628,107 | 19 | % | 101,481 | 57,725 | ||||||||||||||||||||||||||||
Taxes and duties | 167,186 | 119,773 | -28 | % | (47,413 | ) | 11,008 | 604,164 | 582,855 | -4 | % | (21,309 | ) | 53,566 | ||||||||||||||||||||||||||
Net income (loss) | (76,324 | ) | (4,149 | ) | 72,175 | (381 | ) | (79,374 | ) | 45,252 | 124,627 | 4,159 | ||||||||||||||||||||||||||||
EBITDA(2) | 124,934 | 153,158 | 23 | % | 28,224 | 14,076 | 626,661 | 786,178 | 25 | % | 159,516 | 72,252 | ||||||||||||||||||||||||||||
EBITDA / financial cost(3) | 9.9 | 23.4 | 11.4 | 17.7 |
* | 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. |
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 |
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PEMEX | Corporate Finance Office — Investor Relations |
2006 Operational Highlights | l | 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 | ||||
l | 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 | |||||
l | Natural gas production rose by 11%, to an average of 5,356 million cubic feet per day (MMcfd) | |||||
l | Petrochemical production reached 11 million tons (MMt), the highest production level recorded since 2001 | |||||
l | As of December 2006 there had been no incapacitating personal injury accidents in Pemex-Gas and Basic Petrochemicals in ten months. | |||||
4Q06 Operational Highlights | l | 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 | ||||
l | 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. | |||||
l | On December 15, 2006, Mexico’s largest platform, KU-S, was added to the Ku-Maloob-Zaap Project in the Campeche Sound |
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PEMEX | Corporate Finance Office — Investor Relations |
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 by 18%, 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. |
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. |
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. |
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PEMEX | Corporate Finance Office — 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. |
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 | % |
Completion of Wells | During the fourth quarter of 2006, the number of drilled wells 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. |
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PEMEX | Corporate Finance Office — Investor Relations |
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 | (Number of | |||||||||||||||||||||||||||||||
wells) | 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 |
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. |
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 | ) |
Discoveries | Our main discoveries during the fourth quarter of 2006 were: |
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 |
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PEMEX | Corporate Finance Office — 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 km2 of 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 km2 of 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 km2 of 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. |
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PEMEX | Corporate Finance Office — 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. |
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PEMEX | Corporate Finance Office — 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 Sea | 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 with a greater degree of accuracy. During the same period, 234 exploratory opportunities have been identified. |
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PEMEX | Corporate Finance Office — Investor Relations |
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. |
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. |
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. |
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PEMEX | Corporate Finance Office — Investor Relations |
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. |
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 |
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. |
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. |
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) |
10/38
PEMEX | Corporate Finance Office — Investor Relations |
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. |
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 | — | 32 | 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 | — | (10 | ) | 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. |
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. |
11/38
PEMEX | Corporate Finance Office — Investor Relations |
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). | ||
80% of total crude oil exports were delivered to the United States, while the remaining 20% was distributed among Europe (10%), the rest of the Americas (8%) and the Far East (2%). | ||
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$45.6 per barrel in the fourth quarter of 2005, representing a 7% increase. | ||
Refined Products and Petrochemicals’ Exports | Exports of refined products averaged 180 Mbd, 6% lower than in the fourth quarter of 2005. This was due primarily to the processing of Isthmus crude oil in La Cangrejera and lower jet fuel exports. The main refined products exported were naphtha and fuel oil. | |
Petrochemical exports decreased by 5%, or 9 Mt, totaling 184 Mt for the fourth quarter of 2006. This was attributable primarily to lower sulfur sales. The main petrochemical exports were sulfur11 and low-density polyethylene. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Exports(1)
Fourth quarter (Oct.-Dec.) | Twelve months ending Dec. 31 | |||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2005 | 2006 | Change | |||||||||||||||||||||||||||
Crude oil exports (Mbd)(2) | ||||||||||||||||||||||||||||||||
Total | 1,888 | 1,663 | -12 | % | (225 | ) | 1,817 | 1,793 | -1 | % | (24 | ) | ||||||||||||||||||||
Heavy | 1,508 | 1,373 | -9 | % | (135 | ) | 1,520 | 1,494 | -2 | % | (27 | ) | ||||||||||||||||||||
Light | 172 | 66 | -61 | % | (105 | ) | 81 | 68 | -16 | % | (13 | ) | ||||||||||||||||||||
Extra-light | 208 | 223 | 7 | % | 15 | 216 | 231 | 7 | % | 15 | ||||||||||||||||||||||
Average price (US$/b) | 45.60 | 48.58 | 7 | % | 3 | 42.71 | 53.04 | 24 | % | 10 | ||||||||||||||||||||||
Refined products (Mbd) | 192 | 180 | -6 | % | (12 | ) | 186 | 188 | 1 | % | 2 | |||||||||||||||||||||
Petrochemicals (Mt) | 175 | 184 | 5 | % | 9 | 854 | 824 | -4 | % | (30 | ) |
(1) | Source: PMI. Does not consider third party operations by PMI. | |
(2) | Excludes the volume of crude oil under processing agreements. |
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 |
12/38
PEMEX | Corporate Finance Office — 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 ethylene and methanol. |
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. |
13/38
PEMEX | Corporate Finance Office — Investor Relations |
Total Sales | During the fourth quarter of 2006, total sales, including the special tax on production and services, or IEPS tax, decreased by 10% in constant pesos, from Ps. 265.9 billion in the fourth quarter of 2005 to Ps. 240.6 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, 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$5.79 per million British Thermal Unit (MMBtu), which was partially offset by a 16% increase in volume, from 2,506 to 2,914 MMcfd. | |||
• | Sales of refined products, net of IEPS, increased by 0.5% from Ps. 109.3 billion to Ps. 109.8 billion. Refined products sales volume decreased by 1%, from 1,794 Mbd to 1,769 Mbd. The negative IEPS generated by sales of refined products in the fourth quarter of 2006 was credited to other taxes, and appear as “other revenues” in our income statement, as compared to Ps. 2.3 billion collected and then paid to the government in the fourth quarter of 2005. Sales of refined products, including IEPS collected in the fourth quarter of 2005, decreased by 2%, from Ps. 111.6 billion to Ps. 109.8 billion.12 | |||
• | Petrochemical sales decreased by 5%, from Ps. 6.1 billion to Ps. 5.8 billion primarily as a result of a price effect, based on a 10% increase in sales volume, from 920 Mt to 1,012 Mt. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Domestic sales*
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Domestic sales including IEPS(1) | 142,262 | 133,019 | -6 | % | (9,243 | ) | 12,225 | 525,583 | 546,738 | 4 | % | 21,155 | 50,247 | |||||||||||||||||||||||||||
Domestic sales without IEPS | 139,976 | 133,019 | -5 | % | (6,957 | ) | 12,225 | 504,549 | 546,738 | 8 | % | 42,189 | 50,247 | |||||||||||||||||||||||||||
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 | 109,807 | -2 | % | (1,789 | ) | 10,092 | 418,511 | 446,031 | 7 | % | 27,520 | 40,992 | |||||||||||||||||||||||||||
Refined products | 109,310 | 109,807 | 0.5 | % | 497 | 10,092 | 397,478 | 446,031 | 12 | % | 48,554 | 40,992 | ||||||||||||||||||||||||||||
Gasoline | 51,369 | 56,385 | 10 | % | 5,016 | 5,182 | 195,761 | 227,093 | 16 | % | 31,332 | 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 | 16,333 | -27 | % | (5,954 | ) | 1,501 | 66,851 | 74,692 | 12 | % | 7,841 | 6,864 | |||||||||||||||||||||||||||
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. |
14/38
PEMEX | Corporate Finance Office — Investor Relations |
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 |
Exports | During the fourth quarter of 2006, export sales totaled Ps. 107.6 billion (US$9.9 billion), 13% lower than the Ps. 123.7 billion registered in the fourth quarter of 2005: | |||
• | Crude oil and condensates export sales decreased 13%, from Ps. 110.3 billion to Ps. 96.5 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$48.6 dollars per barrel. | |||
• | Refined products export sales decreased by 19%, from Ps. 12.5 billion to Ps. 10.2 billion, while the volume of refined products exports decreased by 7%, from 192 Mbd to 178 Mbd. | |||
• | Petrochemical products export sales increased by 18%, from Ps. 0.8 billion to Ps. 0.9 billion, and the volume of petrochemical exports decreased by 4%, from 192 to 184 Mt.13 |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Exports
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Total exports | 123,685 | 107,586 | -13 | % | (16,100 | ) | 9,887 | 440,701 | 515,757 | 17 | % | 75,056 | 47,400 | |||||||||||||||||||||||||||
Crude oil and condensates | 110,349 | 96,453 | -13 | % | (13,897 | ) | 8,864 | 394,264 | 463,183 | 17 | % | 68,919 | 42,568 | |||||||||||||||||||||||||||
Refined products | 12,544 | 10,200 | -19 | % | (2,344 | ) | 937 | 42,464 | 48,911 | 15 | % | 6,447 | 4,495 | |||||||||||||||||||||||||||
Petrochemical products | 792 | 934 | 18 | % | 142 | 86 | 3,973 | 3,663 | -8 | % | (311 | ) | 337 |
* | 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 |
15/38
PEMEX | Corporate Finance Office — Investor Relations |
Total Amount | In the fourth quarter of 2006, costs and operating expenses decreased by 21%, or Ps. 34.7 billion, as compared to the fourth quarter of 2005, to Ps. 131.0 billion (US$12.0 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 28%, or Ps. 41.2 billion, to Ps. 106.5 billion (US$9.8 billion). The decreased was the result of the following: | |||
• | a decrease of Ps. 25.0 billion in the cost of purchase of products, | |||
• | a favorable effect of Ps. 9.3 billion in the variation of inventories, | |||
• | a decrease of Ps. 3.8 billion in exploration and non-successful drilling expenses, | |||
• | a decrease of Ps. 2.4 billion in upkeep and maintenance, | |||
• | a decrease of Ps. 2.0 billion in operating costs, | |||
• | 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 | |||
• | a decrease of Ps. 1.0 billion in depreciation and amortization. | |||
Distribution Expenses | During the fourth quarter of 2006, distribution expenses increased by 0.3%, to Ps. 7.0 billion (US$0.6 billion). | |||
Administrative Expenses | During the fourth quarter of 2006, administrative expenses increased from Ps. 11.0 to Ps. 17.5 billion (US$1.6 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. 17.9 billion.14 |
Operating income in the fourth quarter of 2006 totaled Ps. 109.6 billion (US$53.4 billion), 9% increase 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 12%, or Ps. 11.6 billion, to Ps. 109.6 billion (US$10.1 billion) in the fourth quarter of 2006 from Ps. 98.0 billion in the fourth quarter of 2005. |
14 | This cost is distributed among cost of sales, distribution expenses and administrative expenses. |
16/38
PEMEX | Corporate Finance Office — Investor Relations |
Total Amount | During the fourth quarter of 2006, comprehensive financing cost increased by Ps. 2.1 billion, from Ps. 0.7 billion to Ps. 2.8 billion (US$0.3 billion). This increase was mainly caused by: | |||
• | a decrease of Ps. 4.0 billion in monetary gain, | |||
• | an increase of Ps. 1.6 billion in foreign exchange gains, and | |||
• | a decrease of Ps. 0.3 billion in net interest and financial products expense. | |||
Net Interest and Financial Products15 | In the fourth quarter of 2006, net interest and financial products decreased by 2%, from Ps. 12.9 billion to Ps. 12.6 billion (US$1.2 billion). | |||
Interest expense, including capitalized interest, decreased by Ps. 6.1 billion, while interest income increased by Ps. 5.8 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. 6.8 billion (US$0.6 billion), representing a decrease of Ps.4.0 billion as compared to the monetary gain for the fourth quarter of 2005. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Comprehensive financing cost
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Comprehensive financing cost | 717 | 2,799 | 290 | % | 2,082 | 257 | 4,661 | 22,983 | 393 | % | 18,322 | 2,112 | ||||||||||||||||||||||||||||
Financial income** | 239 | 6,048 | 2429 | % | 5,809 | 556 | (15,079 | ) | (9,545 | ) | -37 | % | 5,533 | (877 | ) | |||||||||||||||||||||||||
Financial cost** | 12,651 | 6,554 | -48 | % | (6,097 | ) | 602 | 55,076 | 44,429 | -19 | % | (10,647 | ) | 4,083 | ||||||||||||||||||||||||||
Foreign exchange loss (gain) | (1,368 | ) | (2,963 | ) | 117 | % | (1,595 | ) | (272 | ) | (18,342 | ) | 2,381 | 20,723 | 219 | |||||||||||||||||||||||||
Monetary loss (gain) | (10,805 | ) | (6,839 | ) | -37 | % | 3,965 | (629 | ) | (16,994 | ) | (14,282 | ) | -16 | % | 2,712 | (1,313 | ) |
* | 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. |
Other Net Revenues | In the fourth quarter of 2006, other net revenues totaled a positive Ps. 8.8 billion (US$0.8 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. | |||
15 | Includes the effect of financial derivatives |
17/38
PEMEX | Corporate Finance Office — Investor Relations |
During the fourth quarter of 2006, income before taxes and duties was Ps. 115.6 billion (US$10.6 billion), as compared to Ps. 97.4 billion during the same period of 2005. The 19% increase was primarily the result of: | ||||
• | an increase of Ps. 11.0 billion in other net revenues, and | |||
• | an increase of Ps. 9.3 billion in operating income, which were partially offset by | |||
• | an increase of Ps. 2.1 billion in comprehensive financing cost. |
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 aquasioperating 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.16 | |||
Total Amount | During 2006, taxes and duties paid decreased by 4%, from Ps. 604.2 billion to Ps. 582.9 billion. Nevertheless, sales only increased 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 28%, from Ps. 167.2 billion to Ps. 119.8 billion. Nevertheless, sales only decreased 10%. As a consequence, taxes and duties as a percentage of total sales decreased from 63% to 50% in the fourth quarter of 2006. |
16 | 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$36.50 per barrel. This duty is complemented by the extraordinary duty on crude oil exports, which is equal to 13.1% of the revenues from crude oil export sales in excess of the same threshold price. The resulting combined duty is equivalent to 19.6%, which is 50% of the excess gains duty tax rate paid in 2005. |
18/38
PEMEX | Corporate Finance Office — Investor Relations |
IEPS | Under the current fiscal regime, the IEPS,17 which applies to domestic sales of gasoline and automotive diesel, continues to be regulated by Mexico’s Income Tax Law. | |
During 2005 and 2006, the average producer price of gasoline and diesel was higher than the retail price. In 2005, PEMEX absorbed this difference, in accordance with Mexico’s 2005 Income Tax Law. In 2006, this difference was credited against the other taxes and duties paid by PEMEX, in accordance to Mexico’s 2006 Income Tax Law. The IEPS credit is reflected in “other revenues” in the income statement. | ||
During the fourth quarter of 2006, PEMEX recorded a Ps. 4.2 billion IEPS credit against other taxes and duties, as compared to a Ps. 2.3 billion payment in the fourth quarter of 2005. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Taxes and duties
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Total taxes and duties | 167,186 | 119,773 | -28 | % | (47,413 | ) | 11,008 | 604,164 | 582,855 | -4 | % | (21,309 | ) | 53,566 | ||||||||||||||||||||||||||
Hydrocarbon duties | 141,972 | 114,481 | -19 | % | (27,491 | ) | 10,521 | 515,059 | 562,092 | 9 | % | 47,033 | 51,658 | |||||||||||||||||||||||||||
Ordinary hydrocarbons duty | — | 90,997 | 90,997 | 8,363 | — | 486,175 | 486,175 | 44,681 | ||||||||||||||||||||||||||||||||
Duty on crude oil extraction | 141,972 | 3 | (141,968 | ) | 0 | 515,059 | 36 | (515,023 | ) | 3 | ||||||||||||||||||||||||||||||
Extraordinary duty on crude oil exports | — | 2,357 | 2,357 | 217 | — | 15,555 | 15,555 | 1,430 | ||||||||||||||||||||||||||||||||
Duty on hydrocarbons for the stabilization fund | — | 9,598 | 9,598 | 882 | — | 45,899 | 45,899 | 4,218 | ||||||||||||||||||||||||||||||||
Duty on hydrocarbons for the fund for scientific and technological research on energy | — | 82 | 82 | 8 | — | 404 | 404 | 37 | ||||||||||||||||||||||||||||||||
Duty for fiscal monitoring of oil activities | — | 5 | 5 | 0 | — | 24 | 24 | 2 | ||||||||||||||||||||||||||||||||
Additional duty | — | (2,558 | ) | (2,558 | ) | (235 | ) | — | — | — | — | |||||||||||||||||||||||||||||
Inflation recognition | — | 13,999 | 13,999 | 1,287 | — | 13,999 | 13,999 | 1,287 | ||||||||||||||||||||||||||||||||
Special Tax on Production and Services (IEPS) | 2,286 | — | (2,286 | ) | — | 21,033 | — | (21,033 | ) | — | ||||||||||||||||||||||||||||||
Excess gains duty | 17,369 | 1,303 | -93 | % | (16,066 | ) | 120 | 58,665 | 7,926 | -86 | % | (50,739 | ) | 728 | ||||||||||||||||||||||||||
Other taxes and duties | 5,560 | 3,990 | -28 | % | (1,570 | ) | 367 | 9,407 | 12,837 | 36 | % | 3,431 | 1,180 |
* | 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. |
17 | 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. |
19/38
PEMEX | Corporate Finance Office — Investor Relations |
During the fourth quarter of 2006, PEMEX recorded net loss of Ps. 4.1 billion (US$0.4 billion), as compared to a net loss of Ps. 76.3 billion during the fourth quarter of 2005. The decrease of Ps. 72.2 billion in net loss is explained by: | ||||
• | a decrease of Ps. 47.4 billion in taxes and duties, | |||
• | an increase of Ps. 11.0 billion in other net revenues, | |||
• | a decrease of Ps. 9.3 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. 2.1 billion in comprehensive financing cost. |
During the fourth quarter of 2006, EBITDA decreased by 23%, from Ps. 124.9 billion to Ps. 153.2 billion (US$14.1 billion). | ||||
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
EBITDA reconciliation
Fourth quarter (Oct. - Dec.) | Twelve months ending Dec. 31, | |||||||||||||||||||||||||||||||||||||||
2005 | 2006 | Change | 2006 | 2005 | 2006 | Change | 2006 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Net income (loss) | (76,324 | ) | (4,149 | ) | 72,175 | (381 | ) | (79,374 | ) | 45,252 | 124,627 | 4,159 | ||||||||||||||||||||||||||||
+ Taxes and duties | 167,186 | 119,773 | -28 | % | (47,413 | ) | 11,008 | 604,164 | 582,855 | -4 | % | (21,309 | ) | 53,566 | ||||||||||||||||||||||||||
- Special Tax on Production and Services (IEPS) | 2,286 | — | (2,286 | ) | — | 21,033 | — | (21,033 | ) | — | ||||||||||||||||||||||||||||||
+ Comprehensive financing cost | 717 | 2,799 | 290 | % | 2,082 | 257 | 4,661 | 22,983 | 393 | % | 18,322 | 2,112 | ||||||||||||||||||||||||||||
+ Depreciation and amortization | 15,801 | 16,828 | 6 | % | 1,027 | 1,547 | 54,931 | 63,293 | 15 | % | 8,362 | 5,817 | ||||||||||||||||||||||||||||
+ Cost of the reserve for retirement payments | 13,333 | 17,907 | 34 | % | 4,574 | 1,646 | 61,477 | 71,795 | 17 | % | 10,318 | 6,598 | ||||||||||||||||||||||||||||
- Initial cumulative effect due to the adoption of new accounting standards | (6,507 | ) | — | 6,507 | — | (1,837 | ) | — | 1,837 | — | ||||||||||||||||||||||||||||||
EBITDA | 124,934 | 153,158 | 23 | % | 28,224 | 14,076 | 626,661 | 786,178 | 25 | % | 159,516 | 72,252 |
* | 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. |
20/38
PEMEX | Corporate Finance Office — Investor Relations |
As of December 31, 2006, total assets reached Ps. 1,204.7 billion (US$110.7 billion), representing a 11%, or Ps. 119.9 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. 41.2 billion, | |||
• | accounts receivable increased by 8%, or Ps. 9.5 billion, | |||
• | the value of inventories increased by 14%, or Ps. 7.2 billion, | |||
• | financial derivative instruments increased by 17%, or Ps. 0.6 billion, and | |||
• | other assets decreased by 1.4%, or Ps. 1.6 billion. |
Total liabilities increased by 5%, to Ps. 1,164.8 billion (US$107.0 billion): | ||||
• | short-term liabilities decreased by 1%, or Ps. 1.2 billion, to Ps. 169.9 billion (US$15.6 billion), primarily as a result of a decrease in taxes payable, and | |||
• | long-term liabilities increased by 6%, or Ps. 53.2 billion, to Ps. 994.9 billion (US$91.4 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. 454.6 billion (US$41.8 billion) according to actuarial studies. |
PEMEX’s equity increased by Ps. 67.9 billion, from negative Ps. 28.0 billion as of December 31, 2005, to Ps. 40.0 billion (or US$3.7 billion) as of December 31, 2006. The change in equity was mainly due to: | ||||
• | a payment from the government to PEMEX in the amount of Ps. 47.0 billion in accordance with the Federal Expenditure Budget for the 2006 and 2005 fiscal years, | |||
• | a decrease of Ps. 30.1 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. 3.9 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”. |
21/38
PEMEX | Corporate Finance Office — Investor Relations |
Operating Income | In 2006, operating income totaled Ps.581.3 billion (US$53.4 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. 665.6 billion (US$61.2 billion), Ps. 118.6 billion higher than its operating income in 2005. | |||
• | PEMEX Gas and Basic Petrochemicals’ operating income totaled Ps. 10.3 billion (US$0.9 billiion), Ps.0.04 billion higher than its operating income in 2005. | |||
• | the operating loss of PEMEX Refining totaled Ps. 79.9 billion (US$7.3 billion), Ps. 52.1 billion greater than its operating loss in 2005. | |||
• | the operating loss of PEMEX Petrochemicals totaled Ps. 11.4 billion (US$1.0 billion), Ps. 2.0 billion greater than its operating loss in 2005. |
Funds Provided by Operating Activities | In 2006, funds provided by operating activities totaled Ps. 131.0 billion (US$12.0 billion). The increase of Ps. 70.8 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$3.8 billion). The Ps. 18.5 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. 109.1 billion (US$10.0 billion), the increase was primarily a result of the increase in fixed assets. |
22/38
PEMEX | Corporate Finance Office — Investor Relations |
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. 162.9 billion (US$14.5 billion), out of which PIDIREGAS investments represent Ps. 154.8 billion (US$13.8 billion). | |||
The allocation of total capital expenditures by line of business is as follows: |
• | Ps. 139.6 billion for Exploration and Production | |||
• | Ps. 18.4 billion for Refining, | |||
• | Ps. 3.1 billion for Gas and Basic Petrochemicals, and | |||
• | Ps. 1.6 billion for Petrochemicals. | |||
These amounts are subject to budgetary adjustments. |
2006 | During 2006, US$5.2 billion of new financing was raised as follows: | |||
• | US$2.7 billion from export credit agencies (ECA’s), | |||
• | US$1.4 billion from the international capital markets, and | |||
• | US$1.1 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. |
23/38
PEMEX | Corporate Finance Office — Investor Relations |
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 Amount | As of December 31, 2006, PEMEX’s total consolidated debt, including accrued interest, totaled Ps. 569.3 billion (US$52.3 billion).18 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$35.0 billion) as of December 31, 2006, from Ps. 433.8 billion in 2005. |
18 | Total consolidated debt is comprised by documented debt of Petróleos Mexicanos, the Pemex Project Funding Master Trust, the Fideicomiso F/163, RepCon Lux S.A. and Pemex Finance, Ltd |
24/38
PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated total debt
As of December 31, | ||||||||||||||||||||
2005 | 2006 | Change | 2006 | |||||||||||||||||
(Ps. mm) | (US$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: |
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. |
25/38
PEMEX | Corporate Finance Office — Investor Relations |
Duration | The following table presents average duration of debt exposure. |
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) |
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: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Debt exposure
(excluding accrued interest)
As of December 31, | ||||||||||||||||||||||||
2005 | 2006 | 2005 | 2006 | 2005 | 2006 | |||||||||||||||||||
Percentage | ||||||||||||||||||||||||
By currency | 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 | % |
26/38
PEMEX | Corporate Finance Office — Investor Relations |
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. |
27/38
PEMEX | Corporate Finance Office — Investor Relations |
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. |
28/38
PEMEX | Corporate Finance Office — Investor Relations |
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. |
29/38
PEMEX | Corporate Finance Office — Investor Relations |
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 |
30/38
PEMEX | Corporate Finance Office — Investor Relations |
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 |
31/38
PEMEX | Corporate Finance Office — Investor Relations |
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 | 384,924 | 26 | % | 80,294 | 35,376 | ||||||||||||||
Cash & cash equivalents | 125,724 | 188,684 | 50 | % | 62,960 | 17,341 | ||||||||||||||
Accounts receivable | 122,658 | 132,194 | 8 | % | 9,536 | 12,149 | ||||||||||||||
Inventories | 52,633 | 59,815 | 14 | % | 7,183 | 5,497 | ||||||||||||||
Financial derivative instruments | 3,614 | 4,231 | 17 | % | 616 | 389 | ||||||||||||||
Properties and equipment | 669,308 | 710,488 | 6 | % | 41,180 | 65,296 | ||||||||||||||
Other assets | 110,881 | 109,322 | -1 | % | (1,558 | ) | 10,047 | |||||||||||||
Total assets | 1,084,818 | 1,204,734 | 11 | % | 119,916 | 110,719 | ||||||||||||||
Short-term liabilities | 171,143 | 169,927 | -1 | % | (1,216 | ) | 15,617 | |||||||||||||
Short-term debt(1) | 37,558 | 63,841 | 26,283 | 5,867 | ||||||||||||||||
Suppliers | 32,216 | 35,759 | 11 | % | 3,543 | 3,286 | ||||||||||||||
Accounts payable and accured expenses | 10,803 | 14,063 | 30 | % | 3,260 | 1,292 | ||||||||||||||
Taxes payable | 70,762 | 43,376 | -39 | % | (27,386 | ) | 3,986 | |||||||||||||
Financial derivative instruments | 19,804 | 12,888 | -35 | % | (6,917 | ) | 1,184 | |||||||||||||
Long-term liabilities | 941,634 | 994,854 | 6 | % | 53,220 | 91,430 | ||||||||||||||
Long-term debt(2) | 521,924 | 505,475 | (16,449 | ) | 46,455 | |||||||||||||||
Reserve for retirement payments, pensions and seniority premiums | 390,890 | 454,578 | 16 | % | 63,687 | 41,777 | ||||||||||||||
Other non-current liabilities(3) | 26,762 | 30,371 | 13 | % | 3,609 | 2,791 | ||||||||||||||
Deferred taxes | 2,058 | 4,431 | 115 | % | 2,373 | 407 | ||||||||||||||
Total liabilities | 1,112,777 | 1,164,781 | 5 | % | 52,004 | 107,047 | ||||||||||||||
Total equity | (27,959 | ) | 39,954 | 67,913 | 3,672 | |||||||||||||||
Total liabilities & equity | 1,084,818 | 1,204,735 | 11 | % | 119,916 | 110,719 |
* | 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. |
32/38
PEMEX | Corporate Finance Office — Investor Relations |
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 | 240,605 | -10 | % | (25,342 | ) | 22,112 | 966,284 | 1,062,495 | 10 | % | 96,211 | 97,647 | |||||||||||||||||||||||||||
Domestic sales(1) | 142,262 | 133,019 | -6 | % | (9,243 | ) | 12,225 | 525,583 | 546,738 | 4 | % | 21,155 | 50,247 | |||||||||||||||||||||||||||
Exports | 123,685 | 107,586 | -13 | % | (16,099 | ) | 9,888 | 440,701 | 515,757 | 17 | % | 75,056 | 47,400 | |||||||||||||||||||||||||||
Costs and expenses(2) | 165,704 | 131,017 | -21 | % | (34,687 | ) | 12,041 | 447,313 | 481,146 | 8 | % | 33,833 | 44,219 | |||||||||||||||||||||||||||
Cost of sales | 147,682 | 106,487 | -28 | % | (41,195 | ) | 9,787 | 375,817 | 403,106 | 7 | % | 27,289 | 37,047 | |||||||||||||||||||||||||||
Distribution expenses | 6,999 | 7,023 | 0 | % | 24 | 645 | 22,799 | 24,019 | 5 | % | 1,220 | 2,207 | ||||||||||||||||||||||||||||
Administrative expenses | 11,022 | 17,507 | 59 | % | 6,484 | 1,609 | 48,697 | 54,022 | 11 | % | 5,325 | 4,965 | ||||||||||||||||||||||||||||
Operating income | 100,244 | 109,589 | 9 | % | 9,345 | 10,072 | 518,971 | 581,348 | 12 | % | 62,378 | 53,428 | ||||||||||||||||||||||||||||
Comprehensive financing cost | 717 | 2,799 | 290 | % | 2,082 | 257 | 4,661 | 22,983 | 393 | % | 18,322 | 2,112 | ||||||||||||||||||||||||||||
Other expenses (revenues) | 2,157 | (8,835 | ) | (10,992 | ) | (812 | ) | (12,317 | ) | (69,742 | ) | (57,425 | ) | (6,409 | ) | |||||||||||||||||||||||||
Income before taxes and duties | 97,369 | 115,624 | 19 | % | 18,255 | 10,626 | 526,627 | 628,107 | 19 | % | 101,481 | 57,725 | ||||||||||||||||||||||||||||
Taxes and duties | 167,186 | 119,773 | -28 | % | (47,413 | ) | 11,008 | 604,164 | 582,855 | -4 | % | (21,309 | ) | 53,566 | ||||||||||||||||||||||||||
Hydrocarbon duties and other | 164,900 | 119,773 | -27 | % | (45,127 | ) | 11,008 | 583,131 | 582,855 | 0 | % | (276 | ) | 53,566 | ||||||||||||||||||||||||||
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 | ) | (4,149 | ) | 72,175 | (381 | ) | (79,374 | ) | 45,252 | 124,627 | 4,159 |
* | 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 retirment payments, pensions and indemnities. |
33/38
PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies Equity
As of December 31, | ||||||||||||||||||||
2005 | 2006 | Change | 2006 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total equity | (27,959 | ) | 39,954 | -243 | % | 67,913 | 3,672 | |||||||||||||
Certificates of contribution “A” | 93,445 | 93,445 | — | 8,588 | ||||||||||||||||
Capitalized proceeds | 81,505 | 128,468 | 58 | % | 46,963 | 11,807 | ||||||||||||||
Effect of the reserve for retirement payments | (28,388 | ) | (46,576 | ) | 64 | % | (18,188 | ) | (4,280 | ) | ||||||||||
Comprehensive income | (6,782 | ) | (1,699 | ) | -75 | % | 5,083 | (156 | ) | |||||||||||
Restatement of equity | 150,183 | 154,101 | 3 | % | 3,917 | 14,162 | ||||||||||||||
Accumulated net income (losses) | (317,923 | ) | (287,786 | ) | -9 | % | 30,138 | (26,448 | ) | |||||||||||
From prior years | (238,549 | ) | (333,038 | ) | 40 | % | (94,489 | ) | (30,607 | ) | ||||||||||
Net income (loss) for the period | (79,374 | ) | 45,252 | 124,627 | 4,159 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican GAAP. Accordingly, peso figures are presented in constant Mexican pesos as of December 31, 2006. |
34/38
PEMEX | Corporate Finance Office — Investor Relations |
Changes in financial position
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated statements of changes in financial position
As of December 31, | ||||||||||||||||||||
2005 | 2006 | Change | 2006 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income (loss) | (79,374 | ) | 45,252 | 124,627 | 4,159 | |||||||||||||||
Charges to operations not requiring the use of funds: | 119,846 | 136,637 | 14 | % | 16,791 | 12,557 | ||||||||||||||
Depreciation and amortization | 54,931 | 63,293 | 15 | % | 8,362 | 5,817 | ||||||||||||||
Other non-cash flow items | 64,915 | 73,344 | 13 | % | 8,428 | 6,741 | ||||||||||||||
Funds from net income (loss) | 40,472 | 181,889 | 349 | % | 141,417 | 16,716 | ||||||||||||||
Changes in working capital: | 19,739 | (50,843 | ) | (70,582 | ) | (4,673 | ) | |||||||||||||
Accounts, notes receivable and other | 9,571 | (9,076 | ) | (18,647 | ) | (834 | ) | |||||||||||||
Inventories | (6,291 | ) | (2,581 | ) | -59 | % | 3,710 | (237 | ) | |||||||||||
Intangible asset derived from actuarial computation of labor obligations and other assets | 5,555 | 5,491 | -1 | % | (65 | ) | 505 | |||||||||||||
Suppliers | 6,064 | 3,543 | -42 | % | (2,520 | ) | 326 | |||||||||||||
Other liabilities | 4,840 | (48,220 | ) | (53,060 | ) | (4,432 | ) | |||||||||||||
Funds provided (used) by operating activities | 60,210 | 131,046 | 118 | % | 70,836 | 12,044 | ||||||||||||||
Financing activities | ||||||||||||||||||||
Bank loans | 14,190 | 61,973 | 337 | % | 47,784 | 5,696 | ||||||||||||||
Securities | 179,877 | 95,900 | -47 | % | (83,977 | ) | 8,814 | |||||||||||||
Other financing | — | — | — | — | ||||||||||||||||
Amortization of bank loans | (58,162 | ) | (131,741 | ) | 127 | % | (73,579 | ) | (12,107 | ) | ||||||||||
Amortization of securities | (43,317 | ) | (3,023 | ) | 40,293 | (278 | ) | |||||||||||||
Other items | (68,474 | ) | (13,276 | ) | 55,198 | (1,220 | ) | |||||||||||||
Own financing activities | ||||||||||||||||||||
Minimum guaranteed dividends paid to the Mexican Government | (11,067 | ) | (15,799 | ) | 43 | % | (4,732 | ) | (1,452 | ) | ||||||||||
Other items | 70,527 | 56,796 | (13,731 | ) | 5,220 | |||||||||||||||
Funds provided (used) by financing activities | 59,460 | 40,997 | -31 | % | (18,463 | ) | 3,768 | |||||||||||||
Investing activities | ||||||||||||||||||||
Acquisition of property, plants and equipment | (86,332 | ) | (105,151 | ) | 22 | % | (18,819 | ) | (9,664 | ) | ||||||||||
Sale of other permanent investments | 1,131 | (3,932 | ) | (5,063 | ) | (361 | ) | |||||||||||||
Funds provided (used) by investing activities | (85,201 | ) | (109,083 | ) | (23,882 | ) | (10,025 | ) | ||||||||||||
Net increase in cash and cash equivalents | 34,469 | 62,960 | 83 | % | 28,491 | 5,786 | ||||||||||||||
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 | 188,684 | 50 | % | 62,960 | 17,341 | ||||||||||||||
Funds provided (used) by operating activities | 60,210 | 131,046 | 118 | % | 70,836 | 12,044 | ||||||||||||||
Funds provided (used) by investing activities | (85,201 | ) | (109,083 | ) | 28 | % | (23,882 | ) | (10,025 | ) | ||||||||||
Free cash-flow** | (24,991 | ) | 21,963 | 46,954 | 2,018 |
* | Derived from audited 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. |
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PEMEX | Corporate Finance Office — Investor Relations |
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
�� | ||||||||||||||||||||||||||||
Subsidiary | ||||||||||||||||||||||||||||
Exploration and | Gas and Basic | Companies and | Intersegment | |||||||||||||||||||||||||
Production | Refining(1) | Petrochemicals | Petrochemicals | Corporate | Eliminations | Total | ||||||||||||||||||||||
Twelve months ending December 31, 2006 | ||||||||||||||||||||||||||||
Total sales | 857,769 | 436,787 | 213,713 | 30,160 | 681,507 | (1,157,440 | ) | 1,062,495 | ||||||||||||||||||||
External clients | — | 392,220 | 133,664 | 20,855 | 515,757 | — | 1,062,495 | |||||||||||||||||||||
Intersegment | 857,769 | 44,567 | 80,049 | 9,305 | 165,750 | (1,157,440 | ) | |||||||||||||||||||||
Operating income (loss) | 665,588 | (79,907 | ) | 10,332 | (11,425 | ) | (3,303 | ) | 63 | 581,348 | ||||||||||||||||||
Net income (loss) | 73,139 | (34,046 | ) | 6,083 | (17,376 | ) | 52,676 | (35,224 | ) | 45,252 | ||||||||||||||||||
As of December 31, 2006 | ||||||||||||||||||||||||||||
Assets | 1,056,631 | 343,979 | 128,908 | 69,661 | 1,964,854 | (2,359,299 | ) | 1,204,734 | ||||||||||||||||||||
Twelve months ending December 31, 2005 | ||||||||||||||||||||||||||||
Total sales | 745,320 | 407,351 | 225,675 | 30,210 | 565,188 | (1,007,460 | ) | 966,284 | ||||||||||||||||||||
External clients | — | 367,540 | 139,735 | 21,036 | 437,973 | 966,284 | ||||||||||||||||||||||
Intersegment | 745,320 | 39,811 | 85,940 | 9,174 | 127,215 | (1,007,460 | ) | — | ||||||||||||||||||||
Operating income (loss) | 546,995 | (27,855 | ) | 10,292 | (9,427 | ) | (21,243 | ) | 20,208 | 518,970 | ||||||||||||||||||
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. |
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PEMEX | Corporate Finance Office — Investor Relations |
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 | ) |
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PEMEX | Corporate Finance Office — Investor Relations |
Telephone: | (52 55) 1944 9700 | |
Voice mail: | (52 55) 1944 2500 ext. 59412 |
Celina Torres | Andrés Brügmann | |
ctorresu@dcf.pemex.com | abrugmann@dcf.pemex.com | |
Rebeca González | Armando Acosta | |
rgonzalez@dcf.pemex.com | aacosta@dcf.pemex.com | |
Elizabeth Osman | Guillermo Regalado | |
eosman@dcf.pemex.com | gregalado@dcf.pemex.com | |
Paulina Nieto | ||
pnietob@dcf.pemex.com |
• | drilling and other exploration activities; | ||
• | import and export activities; | ||
• | projected and targeted capital expenditures and other costs, commitments and revenues; and liquidity. |
• | 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. |
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![(PEMEX LOGO)](https://capedge.com/proxy/6-K/0001362310-07-001648/c70909c7090901.gif)
as of March 31, 2007
PEMEX, Mexico’s oil and gas company and the tenth largest integrated oil company in the world, announced its unaudited consolidated financial results as of March 31, 20071. | ||
1Q07 Financial Highlights | l Total sales decreased by 6%, as compared to the first quarter of 2006, reaching Ps. 235.9 billion in the first quarter of 2007 purchasing power parity (US$21.4 billion)2 | |
l Income before taxes and duties decreased by 21%, as compared to the first quarter of 2006, to Ps. 123.8 billion (US$11.2 billion) | ||
l EBITDA decreased by 10%, as compared to the first quarter of 2006, to Ps. 169.4 billion (US$15.4 billion) | ||
l Net loss was Ps. 10.1 billion (US$0.9 billion) in the first quarter of 2007, as compared to net income of Ps. 8.1 billion in the first quarter of 2006 |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Financial results summary
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total Sales | 251,586 | 235,897 | -6 | % | (15,689 | ) | 21,383 | |||||||||||||
Domestic Sales | 131,875 | 132,197 | 0.2 | % | 322 | 11,983 | ||||||||||||||
Exports | 119,711 | 103,700 | -13 | % | (16,011 | ) | 9,400 | |||||||||||||
Cost of Sales | 79,351 | 88,073 | 11 | % | 8,722 | 7,983 | ||||||||||||||
Gross Profit | 172,235 | 147,824 | -14 | % | (24,411 | ) | 13,399 | |||||||||||||
Distribution and Administrative Expenses | 18,560 | 18,163 | -2 | % | (398 | ) | 1,646 | |||||||||||||
CFC and Other Expenses (Revenues) | (2,884 | ) | 5,814 | 8,698 | 527 | |||||||||||||||
Income before Taxes and Duties | 156,559 | 123,847 | -21 | % | (32,712 | ) | 11,226 | |||||||||||||
Taxes and Duties | 148,481 | 133,990 | -10 | % | (14,491 | ) | 12,145 | |||||||||||||
Net Income (Loss) | 8,078 | (10,143 | ) | (18,222 | ) | (919 | ) | |||||||||||||
EBITDA(1) | 188,352 | 169,355 | -10 | % | (18,997 | ) | 15,351 | |||||||||||||
EBITDA / Financial Cost(2) | 14.5 | 16.3 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) -formerly Mex GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. | |
(1) | 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, there was no IEPS payable during these periods. | |
(2) | Excludes capitalized interest. |
1 | Petroleum Intelligence Weekly Ranking, December 2006. | |
2 | Amounts in US dollars are translated at the March, 31, 2007, exchange rate of Ps. 11.0322 per dollar. |
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PEMEX | Corporate Finance Office — Investor Relations |
1Q07 Operational | l On March 30, 2007, natural gas production registered an unprecedented record of 6,005 million cubic feet per day (MMcfd) | |
Highlights | ||
l In March of 2007, the Burgos and Veracruz projects registered new records in non- associated natural gas production of 1,397 and 893 MMcfd, respectively | ||
l As anticipated, crude oil production decreased by 187 thousand barrels per day (Mbd) or 6%, averaging 3,158 Mbd, due primarily to the decline in production of Cantarell; which was partially offset by an 88 Mbd production increase in the Ku-Maloob-Zaap project. |
Crude Oil Production | During the first quarter of 2007, as expected, crude oil production averaged 3,158 Mbd, 6% less than the 3,345 Mbd produced during the first quarter of 2006. | |
Production of heavy crude oil decreased by 11%, while light and extra-light crude oil production increased by 7% and 16%, respectively. | ||
Heavy crude oil production decreased primarily due to the decline in production of Cantarell, which was partially offset by an 88 Mbd production increase in the Ku-Maloob- Zaap project, due to the installation of the PB-KU-M platform in January 2007. | ||
The increase in light and extra-light crude oil production was due to the completion and workover of wells in the Litoral de Tabasco and Abkatún-Pol-Chuc projects, located in the Southwest Marine Region. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Production of liquid hydrocarbons
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(Mbd) | ||||||||||||||||
Liquid hydrocarbons | 3,785 | 3,579 | -5 | % | (205 | ) | ||||||||||
Crude oil | 3,345 | 3,158 | -6 | % | (187 | ) | ||||||||||
Heavy | 2,376 | 2,105 | -11 | % | (271 | ) | ||||||||||
Light | 800 | 858 | 7 | % | 58 | |||||||||||
Extra-light | 169 | 195 | 16 | % | 26 | |||||||||||
Natural gas liquids(1) | 440 | 421 | -4 | % | (18 | ) |
(1) | Includes condensates. |
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PEMEX | Corporate Finance Office — Investor Relations |
Natural Gas Production | During the first quarter of 2007, an unprecedented natural gas production level was recorded, averaging 5,816 MMcfd, 14% greater than the average production recorded in the first quarter of 2006. On March 30, 2007, natural gas production registered a new record of 6,005 MMcfd. | |
The increase in non associated natural gas production was primarily due to the activity in the Northern Region. In March 2007, the Burgos and Veracruz assets registered new monthly records of non associated natural gas production of 1,397 and 893 MMcfd, respectively. | ||
The production of associated natural gas increased by 253 MMcfd, due to greater production in the Crudo Marino Ligero and Ixtal-Manik projects, located in the Southwest Marine Region. | ||
Gas Flaring | In the first quarter of 2007, gas flaring represented 5% of total natural gas production. The increase with respect to the first quarter of 2006 was primarily due to programmed maintenance and downtime in compression equipment in the Marine Region and gas processing centers. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Production of natural gas and gas flaring
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(MMcfd) | ||||||||||||||||
Total | 5,094 | 5,816 | 14 | % | 722 | |||||||||||
Associated | 3,025 | 3,278 | 8 | % | 253 | |||||||||||
Non associated | 2,069 | 2,538 | 23 | % | 469 | |||||||||||
Natural gas flaring | 163 | 297 | 83 | % | 135 | |||||||||||
Gas flaring / total production | 3.2 | % | 5.1 | % |
Completion of Wells | During the first quarter of 2007, PEMEX Exploration and Production completed 149 new wells, representing a reduction of 21 as compared to the first quarter of 2006. Of the completed wells, a 139 were development wells, a decrease of 14 wells, due to a planned decrease in the drilling equipment in the Burgos project located in the Northern Region. | |
Exploratory wells drilled totaled 10, a decrease of 7 as compared to the first quarter of 2006, as a result of decreases in activity in the Burgos and Veracruz projects in the Northern Region. | ||
It should be highlighted that on March 31, 2007, the number of non associated gas production wells increased by 10%, to 2,949, as compared to March 31, 2007. This increase was due to the completion of wells in the Burgos and Veracruz projects, located in the Northern Region. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Drilling activity and inventory of wells
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(Number of | ||||||||||||||||
wells) | ||||||||||||||||
Wells drilled | 170 | 149 | -12 | % | (21 | ) | ||||||||||
Development | 153 | 139 | -9 | % | (14 | ) | ||||||||||
Exploration | 17 | 10 | -41 | % | (7 | ) | ||||||||||
Total operating wells(1) | 6,112 | 6,375 | 4 | % | 263 | |||||||||||
Injection | 265 | 278 | 5 | % | 13 | |||||||||||
Production | 5,847 | 6,097 | 4 | % | 250 | |||||||||||
Crude | 3,175 | 3,148 | -1 | % | (27 | ) | ||||||||||
Non associated gas | 2,672 | 2,949 | 10 | % | 277 |
(1) | As of March 31, of each year |
Seismic Information | During the first quarter of 2007, no new 2D seismic information was acquired and the number of 3D seismic studies decreased by 68%, as compared to the same quarter of 2006. This was because PEMEX Exploration and Production focused its activities during the quarter on the analysis and interpretation of previous information in order to support exploratory and development activities. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Seismic studies
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
Seismic | ||||||||||||||||
2D (km) | 364 | — | -100 | % | (364 | ) | ||||||||||
3D (km2) | 722 | 230 | -68 | % | (492 | ) |
Discoveries | Our main discoveries during the first quarter of 2007 were: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Main discoveries
Successful wells in | ||||||||
Project | 1Q07 | Geologic age | Initial production | Type | ||||
Burgos | Vigilante -1 | Paleocene | 4.2 MMcfd | Non associated natural gas | ||||
Bonanza -1 | Paleocene | 4.6 MMcfd | Non associated natural gas | |||||
Bato -1 | Oligocene | 4.4 MMcfd | Non associated natural gas | |||||
Julivá | Cráter - 1 | Cretaceous | 1998 bd & 16.94 MMcfd | Gas & condensates |
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PEMEX | Corporate Finance Office — Investor Relations |
Cantarell | The main achievements in Cantarell during the first quarter of 2007 were the following: | |
• completion of 6 development wells, | ||
• 19 workovers, | ||
• 9 minor workovers, and | ||
• completion of the 36” x 3 km gas pipeline from Akal G to compression Akal C6. | ||
In 2007, we expect to make investments totaling Ps. 25.4 billion in Cantarell, which will allow an estimated average production of 1,526 Mbd from this area. | ||
Ku Maloob Zaap (KMZ) | During February 2007, the Ku-Maloob-Zaap project registered a production record of 496 Mbd, after the platform KU-M started operations. In addition, during the first quarter of 2007, production increased by 88 Mdb. | |
By the end of the second quarter of 2007, we expect to inject 300 MMfcd of nitrogen to maintain pressure in reservoirs and to drill 11 development wells. | ||
In 2007, we expect to make investments totaling Ps. 26.3 billion in the Ku-Maloob-Zaap project in order to reach an estimated production of 500 Mbd. | ||
Yúum K´ak´n ´aab: Lord of the Sea | The Floating Production, Storage and Offloading (FPSO) vessel Yùum K’ak’náab, Lord of the Sea, will begin operations by the end of the second quarter of 2007. It will be the first FPSO vessel operating in the Gulf of Mexico. | |
The FPSO vessel offers the following advantages: | ||
• the possibility of obtaining extra economic value in heavy crude oil production in the Campeche Sound; | ||
• an increase in our production flexibility in the Northeast Marina Region; | ||
• blend different types of crude in order to maintain a “Maya” type mix and satisfy the export market; and | ||
• the ability to store up to 2.2 MMb and a maximum unload capacity of 1.2 MMbd. | ||
After the vessel is commissioned, 50% of the FPSO cost will be paid (US$758 MM); the remaining 50% will be paid over 15 years, conditioned on the supplier’s performance during the operational period. |
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PEMEX | Corporate Finance Office — Investor Relations |
Gas Processing and Dry Gas Production | During the first quarter of 2007, total on-shore natural gas processing increased by 9%, as compared to the first quarter of 2006. This increase was attributable to a 47%, or 356 MMcfd, increase in sweet wet gas processing due to higher production in the Burgos Basin. The processing of sour wet gas decreased by 5 MMcfd, primarily due to compression equipment downtime in Atasta. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Natural gas processed and dry gas production
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(MMcfd) | ||||||||||||||||
On-shore gas processed | 4,017 | 4,368 | 9 | % | 351 | |||||||||||
Sour wet gas | 3,253 | 3,248 | -0.1 | % | (5 | ) | ||||||||||
Sweet wet gas | 764 | 1,119 | 47 | % | 356 | |||||||||||
Production | ||||||||||||||||
Dry gas | 3,284 | 3,645 | 11 | % | 361 | |||||||||||
Natural gas liquids (Mbd)(1) | 440 | 421 | -4 | % | (18 | ) |
(1) | Includes other streams to fractionation. |
Infrastructure Works | During the second quarter of 2007, we expect that the Burgos-Monterrey LPG pipeline will start operating. This 12” pipeline should be able to transport 30 Mbd of LPG to the Monterrey, Saltillo and La Laguna area. Gasoductos de Chihuahua, established in 1997 by PEMEX – Gas y Petroquímica Básica and El Paso Corporation, is responsible for the construction and maintenance of the pipeline. | |
On January 15, 2007, PEMEX Gas and Basic Petrochemicals began the construction of cryogenic plants 5 and 6, in the Burgos Gas Processing Center (GPC). Each plant will have a processing capacity of 200 MMcfd. |
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PEMEX | Corporate Finance Office — Investor Relations |
Processing | During the first quarter of 2007, total crude oil processing increased by 5%, as compared to the same period of the previous year. The increase was due primarily to the maintenance during 2006, which decreased production during that period. | |
The 0.4% decrease in heavy crude oil processing and the 9% increase in light crude oil processing during the first quarter of 2007 reflected our strategy to maximize diesel and gasoline production and to minimize fuel oil production. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Crude oil processing
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(Mbd) | ||||||||||||||||
Total processed | 1,265 | 1,326 | 5 | % | 62 | |||||||||||
Heavy Crude | 519 | 517 | -0.4 | % | (2 | ) | ||||||||||
Light Crude | 745 | 809 | 9 | % | 64 |
Capacity Utilization | As a consequence of the increase in our crude oil processing during the first quarter of 2007, our primary distillation capacity utilization rate increased from 82.1% to 86.1%. | |
Production | During the first quarter of 2007, production of refined products increased by 42 Mbd, as compared to the same period of 2006, reaching an average of 1,584Mbd. | |
Gasoline and diesel production increased by 5% and by 11%, respectively, whereas fuel oil production decreased by 4%, due to higher crude oil processing, an increase in the coking capacity utilization and fewer programmed downtimes during 2007, as compared to programmed maintenance during the first quarter of 2006. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Refining production
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(Mbd) | ||||||||||||||||
Total production | 1,542 | 1,584 | 3 | % | 42 | |||||||||||
Gasolines | 450 | 472 | 5 | % | 22 | |||||||||||
Fuel oil | 334 | 320 | -4 | % | (13 | ) | ||||||||||
Diesel | 317 | 351 | 11 | % | 34 | |||||||||||
Liquefied petroleum gas (LPG)(1) | 247 | 239 | -3 | % | (9 | ) | ||||||||||
Jet Fuel | 62 | 68 | 9 | % | 6 | |||||||||||
Other(2) | 132 | 135 | 2 | % | 2 |
(1) | Excludes butilene and propilene and includes isobutanes from Pemex — Gas | |
(2) | Includes mainly parafines, furfural extract and aeroflex. |
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PEMEX | Corporate Finance Office — Investor Relations |
Variable Refining Margin | In the first quarter of 2007, PEMEX’s variable refining margin increased by 41%, as compared to the first quarter of 20063, from US$4.9 to US$6.9 per barrel, primarily as a result of the higher international prices of refined products and the increase in capacity utilization in the first quarter of 2007. | |
Franchises | As of March 31, 2007, the number of franchised gas stations was 7,699, 6% more than the 7,268 franchises registered on March 31, 2006. | |
Vessel Fleet Renovation | On April 16, 2007, the commencement of the fleet renovation program of PEMEX Refining was announced. The program contemplates the renovation of up to 10 vessels and is intended to support the transportation of refined products in the Pacific Coast. The first stage will involve the renovation of 5 vessels with a total cost of US$231 million and will be implemented through a leasing program which contemplates the purchase of the vessels at the expiration of the lease. |
3 | 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) |
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PEMEX | Corporate Finance Office — Investor Relations |
Production | During the first quarter of 2007, total petrochemicals production was 2,914 thousand tons (Mt), 11% greater than the production recorded in the same quarter of 2006. This increase was primarily driven by: | |
• higher production of aromatics such as toluene, benzene and paraxylene, due to maintenance during 2006 which caused production during that period to fall below normal levels; | ||
• higher production of derivatives of aromatics (hydrogen and BTX liquids –benzene, toluene and xylene–) for the same reason; and | ||
• greater production of ethylene oxide, due to a catalyst renovation and lower maintenance | ||
This increase was partially offset by a decrease in ammonia and carbon dioxide production, due to higher natural gas prices, and a decrease in vinyl chloride, due to programmed maintenance in February 2007. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Production of petrochemicals
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
(Mt) | ||||||||||||||||
Total production | 2,625 | 2,914 | 11 | % | 289 | |||||||||||
Methane derivatives | ||||||||||||||||
Ammonia | 209 | 180 | -14 | % | (29 | ) | ||||||||||
Methanol | 23 | — | — | |||||||||||||
Ethane derivatives | ||||||||||||||||
Ethylene | 259 | 263 | 1 | % | 3 | |||||||||||
Ethylene oxide | 80 | 94 | 18 | % | 15 | |||||||||||
Low density polyethylene | 78 | 68 | -13 | % | (10 | ) | ||||||||||
High density polyethylene | 37 | 45 | 22 | % | 8 | |||||||||||
Vinyl chloride | 50 | 39 | -22 | % | (11 | ) | ||||||||||
Aromatics and derivatives | ||||||||||||||||
Toluene | 25 | 53 | 109 | % | 28 | |||||||||||
Ethylbenzene | 30 | 37 | 24 | % | 7 | |||||||||||
Benzene | 16 | 36 | 119 | % | 20 | |||||||||||
Propylene and derivatives | ||||||||||||||||
Polypropylene | 82 | 80 | -3 | % | (2 | ) | ||||||||||
Others(1) | 1,736 | 2,019 | 16 | % | 283 | |||||||||||
Other products | ||||||||||||||||
Other subproducts |
(1) | Includes glycols, heavy reformed, oxygen, hydrogen, nitrogen, clorhidric acid, muriatic acid, |
Infrastructure Works | In April of 2007, the commercial production of lineal polyethylene began at the Swing plant in the Morelos Petrochemical Complex. The plant has a production capacity of 300 Mt per year of low and/or high linear polyethylene, alternatively. This represents an increase of 60% in the production capacity of this product: reaching 800 Mt per year. Total investment was US$193 million. |
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PEMEX | Corporate Finance Office — Investor Relations |
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Crude Oil Exports | During the first quarter of 2007, crude oil exports averaged 1,711 Mbd, 15% less than the volume recorded during the first quarter of 2006, as a result of a decrease in crude oil production and shipment delays due to adverse weather conditions in January 2007. | |
Approximately 85% of total crude oil exports were heavy crude oil (Maya); the remainder were light and extra-light crude oil (Isthmus and Olmeca). | ||
81% of total crude oil exports were delivered to the United States, while the remaining 19% was distributed among Europe (8%), the rest of the Americas (8%) and the Far East (4%). | ||
The weighted average export price of the Mexican crude oil basket was US$47.3 per barrel, as compared to US$50.2 per barrel, in the first quarter of 2006; hence, representing a 6% decrease in the first quarter of 2007. | ||
Refined Products and Petrochemicals’ | Exports of refined products averaged 213 Mbd, 29% greater than during the first quarter of 2006, primarily due to an increase in exports of fuel oil. Long residue and fuel oil were the main exported refined products. | |
Exports | ||
Petrochemical exports decreased by 11%, or 22 Mt, totaling 184 Mt., due to lower exports of ammonia and polyethylene. Ethylene and sulphur were the main exported products. | ||
Natural Gas Exports | As a consequence of the increase in natural gas production, exports reached 187 MMcfd during the first quarter of 2007, as compared to 26 MMcfd recorded during the same period in 2006. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies Exports(1)
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
Crude oil exports (Mbd)(2) | ||||||||||||||||
Total | 2,003 | 1,711 | -15 | % | (292 | ) | ||||||||||
Heavy | 1,598 | 1,459 | -9 | % | (139 | ) | ||||||||||
Light | 138 | 27 | -81 | % | (111 | ) | ||||||||||
Extra-light | 267 | 225 | -16 | % | (42 | ) | ||||||||||
Average price (US$/b) | 50.2 | 47.3 | -6 | % | (3 | ) | ||||||||||
Refined products (Mbd) | 165 | 213 | 29 | % | 48 | |||||||||||
Petrochemicals (Mt) | 206 | 184 | -11 | % | (22 | ) | ||||||||||
Natural Gas (MMcfd) | 26 | 187 | 610 | % | 160 |
(1) | Source: PMI. Does not consider third party operations by PMI. | |
(2) | Excludes the volume of crude oil under processing agreements. |
4 | According to data provided by PMI Comercio Internacional (PMI). |
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PEMEX | Corporate Finance Office — Investor Relations |
Imports | In the first quarter of 2007, natural gas imports averaged 328 MMcfd, 11% less than those recorded during the same period in 2006, primarily due to higher natural gas production. | |
Imports of refined products decreased by 8%, from 448 to 411 Mbd. This decrease was primarily attributable to an increase in imports of fuel oil, residual fuel oil, diesel and regular gasoline which was partially offset by an increase in imports of premium gasoline. During the first quarter of 2007, the main imported products were gasoline and diesel. | ||
Petrochemical imports decreased by 21%, to 110 Mt, primarily due to lower methanol, ammonia and aromatics (toluene, xylene mix and butane mix) imports. The main imported products were methanol and butane mix. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies Imports(1)
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
Natural gas (MMcfd) | 369 | 328 | -11 | % | (41 | ) | ||||||||||
Refined products (Mbd)(2) | 448 | 411 | -8 | % | (37 | ) | ||||||||||
Petrochemicals (Mt) | 138 | 110 | -21 | % | (28 | ) |
(1) | Source: PMI except natural gas imports. Does not consider third party trading operations by | |
(2) | Includes the volume of imported products under processing agreements. Also includes 81 Mbd and 87 Mbd of LPG for the first quarters of 2006 and 2007, respectively. |
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PEMEX | Corporate Finance Office — Investor Relations |
Total Sales | During the first quarter of 2007, total sales decreased by 6% in constant pesos, as compared to the first quarter of 2006, from Ps. 251.6 to Ps. 235.9 billion. This decrease was primarily due to lower volumes and prices of crude oil exports. | |
Domestic Sales | During the first quarter of 2007, domestic sales increased by 0.2%, from Ps. 131.9 billion to Ps. 132.2 billion: | |
• Natural gas sales decreased by 5%, from Ps. 19.8 billion to Ps. 18.8 billion, due to a decrease in the average price of natural gas from US$7.44 to US$6.32 per million British Thermal Unit (MMBtu), which was only partially offset by a 7% increase in the volume of natural gas sold, from 2,722 MMcfd to 2,925 MMcfd. | ||
• Sales of refined products increased by 0.9%, from Ps. 106.9 billion to Ps. 107.9 billion. Refined products sales volume increased by 2%, from 1,795 Mbd to 1,830 Mbd. | ||
• Petrochemical product sales increased by 7%, from Ps. 5.1 billion to Ps. 5.5 billion, primarily as a result of a 9%volume increase, from 918 to 1,000 Mt. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies Domestic sales*
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Domestic sales | 131,875 | 132,197 | 0.2 | % | 322 | 11,983 | ||||||||||||||
Natural gas | 19,827 | 18,826 | -5 | % | (1,001 | ) | 1,706 | |||||||||||||
Refined products including IEPS | 106,914 | 107,894 | 1 | % | 980 | 9,780 | ||||||||||||||
Refined products | 106,914 | 107,894 | 1 | % | 980 | 9,780 | ||||||||||||||
Gasoline | 52,817 | 54,697 | 4 | % | 1,880 | 4,958 | ||||||||||||||
Diesel | 21,858 | 22,355 | 2 | % | 497 | 2,026 | ||||||||||||||
LPG | 13,971 | 14,115 | 1 | % | 144 | 1,279 | ||||||||||||||
Other | 18,268 | 16,727 | -8 | % | (1,541 | ) | 1,516 | |||||||||||||
Petrochemical products | 5,135 | 5,478 | 7 | % | 343 | 497 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Volume of domestic sales(1)
First quarter (Jan.-Mar.) | ||||||||||||||||
2006 | 2007 | Change | ||||||||||||||
Natural gas (MMcfd) | 2,722 | 2,925 | 7 | % | 203 | |||||||||||
Refined products (Mbd) | 1,795 | 1,830 | 2 | % | 35 | |||||||||||
Gasoline | 699 | 742 | 6 | % | 43 | |||||||||||
Diesel | 335 | 348 | 4 | % | 13 | |||||||||||
LPG | 321 | 321 | -0.2 | % | (1 | ) | ||||||||||
Other | 439 | 419 | -5 | % | (20 | ) | ||||||||||
Petrochemicals (Mt) | 918 | 1,000 | 9 | % | 82 |
Exports | During the first quarter of 2007, export sales totaled Ps. 103.7 billion (US$9.4 billion), 13% less than the exports recorded in the first quarter of 2006, of Ps. 119.7 billion: | |
• Crude oil and condensates export sales decreased by 18%, from Ps. 109.9 billion to Ps. 90.2 billion, primarily as a result of a 15% volume decrease, from 2,003 Mbd to 1,711 Mbd, and a 6% decrease in the weighted average crude oil export price, from US$50.2 to US$47.3 per barrel. | ||
• Refined products export sales increased by 40%, from Ps. 9.1 billion to Ps. 12.8 billion, while the volume of exports of refined products increased by 29%, from 165 Mbd to 213 Mbd. | ||
• Petrochemical products export sales decreased by 2%, from Ps. 0.67 to Ps. 0.65 billion, and the volume of petrochemical exports decreased by 11%, from 206 to 184 Mt.5 |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies Exports
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total exports | 119,711 | 103,700 | -13 | % | (16,011 | ) | 9,400 | |||||||||||||
Crude oil and condensates | 109,899 | 90,243 | -18 | % | (19,656 | ) | 8,180 | |||||||||||||
Refined products | 9,147 | 12,806 | 40 | % | 3,660 | 1,161 | ||||||||||||||
Petrochemical products | 665 | 650 | -2 | % | (15 | ) | 59 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. |
5 | Since the composition of imports and exports of petrochemical products differs, the effect of changes in prices may be different for imports and exports. |
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PEMEX | Corporate Finance Office — Investor Relations |
Total Amount | In the first quarter of 2007, costs and operating expenses increased by 9%, or Ps. 8.3 billion, as compared to the first quarter of 2006, to Ps. 106.2 billion (US$9.6 billion), primarily due to an increase in depreciation and amortization, and in the cost of reserve for retirement payments and indemnities. | |
Cost of Sales | In the first quarter of 2007, cost of sales increased by 11%, or Ps. 8.7 billion, as compared to the first quarter of 2006, to Ps. 88.1 billion (US$8.0 billion). The increase was the result of the following: | |
• an increase of Ps. 5.3 billion in depreciation and amortization, | ||
• a favorable effect of Ps. 2.3 billion in variation of inventories, | ||
• an increase of Ps. 1.2 billion in the cost of the reserve for retirement payments, and indemnities, | ||
• an increase of Ps. 0.9 billion in maintenance expenses, | ||
• an increase of Ps. 0.8 billion in operational expenses, | ||
• a decrease of Ps. 1.8 billion in product purchases. | ||
Distribution Expenses | During the first quarter of 2007, distribution expenses increased by 3%, from Ps. 5.7 to Ps. 5.9 billion (US$0.5 billion). | |
Administrative Expenses | During the first quarter of 2007, administrative expenses decreased from Ps. 12.8 to Ps. 12.3 billion (US$1.1 billion), primarily due to a decrease in operational expenses of Ps. 1.0 billion, driven by the adjustments in annual benefits as a result of medical services provided after retirement and a decrease in amounts paid to external services providers. | |
Cost of the Reserve for Retirement Payments | During the first quarter of 2007, the cost of the reserve for retirement payments, pensions and indemnities increased from Ps. 18.1 to Ps. 20.1 billion.6 |
In the first quarter of 2007, operating income totaled Ps. 129.7 billion (US$11.8 billion), 16% less than operating income for the first quarter of 2006 of Ps. 153.7 billion. |
Total Amount | During the first quarter of 2007, comprehensive financing cost increased by Ps. 6.4 billion from Ps. 3.8 to Ps. 10.2 billion (US$0.9 billion). This increase was primarily caused by: | |
• a decrease of Ps. 5.6 billion in monetary gain, | ||
• an increase of Ps. 3.4 billion in foreign exchange losses, and | ||
• a decrease of Ps. 2.5 billion in net interest and financial products expense. |
6 | This cost is distributed among cost of sales, distribution expenses and administrative expenses. |
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PEMEX | Corporate Finance Office — Investor Relations |
Net Interest and Financial Products7 | In the first quarter of 2007, net interest and financial products expense decreased by 32%, from Ps. 7.8 to Ps. 5.3 billion (US$0.5 billion). | |
Interest expense decreased by Ps. 2.6 billion, while interest income decreased by Ps. 0.1 billion. | ||
Foreign Exchange loss | In the first quarter of 2007, PEMEX recorded a net foreign exchange loss of Ps. 7.8 billion (US$0.7 billion), as compared to the net foreign exchange loss of Ps. 4.5 billion in the first quarter of 2006. | |
This increase was primarily a consequence of the 1.4% depreciation of the peso-dollar exchange rate during the first quarter of 2007, as compare to the 1.0% depreciation recorded during the same period of 2006. | ||
Monetary gain | In the first quarter of 2007, the monetary gain was Ps. 3.0 billion (US$0.3 billion), representing a decrease of Ps.5.6 billion as compared to the first quarter of 2006. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Comprehensive financing cost
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Comprehensive financing cost | 3,790 | 10,224 | 170 | % | 6,435 | 927 | ||||||||||||||
Financial income** | (5,170 | ) | (5,079 | ) | -2 | % | 91 | (460 | ) | |||||||||||
Financial cost** | 12,994 | 10,419 | -20 | % | (2,574 | ) | 944 | |||||||||||||
Foreign exchange loss (gain) | 4,479 | 7,837 | 75 | % | 3,358 | 710 | ||||||||||||||
Monetary loss (gain) | (8,513 | ) | (2,953 | ) | -65 | % | 5,560 | (268 | ) |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. | |
** | The financial cost and financial income include the effect of financial derivatives. |
7 | Includes the effect of financial derivatives |
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PEMEX | Corporate Finance Office — Investor Relations |
In the first quarter of 2007, other net revenues totaled Ps. 4.4 billion (US$0.4 billion), as compared to Ps. 6.7 billion during the first quarter of 2006, primarily due to a reduction in income attributable to the negative IEPS tax8. |
During the first quarter of 2007, income before taxes and duties was Ps. 123.8 billion (US$11.2 billion), as compared to Ps. 156.6 billion recorded in 2006. The 21% decrease was primarily the result of: | ||
• a decrease of Ps. 24.0 billion in operating income, | ||
• an increase of Ps. 6.4 billion in comprehensive financing cost, and | ||
• a decrease of Ps. 2.3 billion in other net revenues. |
Total Amount | During the first quarter of 2007, taxes and duties paid decreased by 10%, from Ps. 148.5 to Ps. 134.0 billion, considering the inflationary effect, primarily due to a decrease in the operational income. | |
During the first quarter of each of 2006 and 2007, PEMEX did not pay IEPS tax10 because the average producer price of gasoline and diesel was higher than the retail price of these products. Instead, PEMEX received a IEPS credit, which is reflected in “other revenues” in the income statement equal to the amount by which its revenues derived from sales of these products in Mexico, calculated at the producer price plus transportation cost, would have exceeded the revenues actually realized based on the retail prices of these products. |
8 | During 2006 and 2007, the average production cost of gasoline and diesel was higher than the retail price, or final price. In accordance with the Mexico’s Income Tax Law of 2006 and 2007, the difference between the average production price of gasoline and diesel and the retail or final price, when the former is higher that the latter, has been and will be credited against other taxes and duties paid by PEMEX. | |
9 | 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 59% in 2006 to 57% in 2007. However, this figure still positions PEMEX among the oil 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 aquasioperating profit. In addition to the payment of the OHD, PEMEX — Exploration and Production pays other duties. | |
10 | The Special Tax on Production and Services (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 an efficient refinery located in the Gulf of Mexico plus transportation costs. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Taxes and duties
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total taxes and duties | 148,481 | 133,990 | -10 | % | (14,491 | ) | 12,145 | |||||||||||||
Hydrocarbon duties | 144,239 | 130,217 | -10 | % | (14,023 | ) | 11,803 | |||||||||||||
Ordinary hydrocarbons duty | — | 113,764 | 113,764 | 10,312 | ||||||||||||||||
Duty on crude oil extraction | 144,239 | — | (144,239 | ) | — | |||||||||||||||
Extraordinary duty on crude oil exports | — | 2,315 | 2,315 | 210 | ||||||||||||||||
Duty on hydrocarbons for the stabilization fund | — | 13,753 | 13,753 | 1,247 | ||||||||||||||||
Duty on hydrocarbons for the fund for scientific and technological research on energy | — | 94 | 94 | 9 | ||||||||||||||||
Duty for fiscal monitoring of oil activities | — | 6 | 6 | 1 | ||||||||||||||||
Inflation recognition | — | 286 | 286 | 26 | ||||||||||||||||
Excess gains duty | 1,775 | — | (1,775 | ) | — | |||||||||||||||
Other taxes and duties | 2,467 | 3,774 | 53 | % | 1,307 | 342 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. |
During the first quarter of 2007, PEMEX recorded a net loss of Ps. 10.1 billion (US$0.9 billion), as compared to net income of Ps. 8.1 billion during the first quarter of 2006. The Ps. 18.2 billion reduction in net income is primarily explained by the effect of non cash charges: | ||
• a Ps.5.2 billion increase in depreciation and amortization, | ||
• a Ps. 2.0 billion increase in the cost of reserve for retirement payments and indemnities, | ||
• a Ps. 3.4 billion increase in foreign exchange loss, and | ||
• a Ps. 5.6 billion decrease in monetary gain. |
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PEMEX | Corporate Finance Office — Investor Relations |
During the first quarter of 2007, EBITDA decreased by 10%, from Ps. 188.4 to Ps. 169.4 billion (US$15.4 billion). |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
EBITDA reconciliation
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Net income (loss) | 8,078 | (10,143 | ) | (18,222 | ) | (919 | ) | |||||||||||||
+ Taxes and duties | 148,481 | 133,990 | -10 | % | (14,491 | ) | 12,145 | |||||||||||||
+ Comprehensive financing cost | 3,790 | 10,224 | 170 | % | 6,435 | 927 | ||||||||||||||
+ Depreciation and amortization | 9,951 | 15,186 | 53 | % | 5,236 | 1,377 | ||||||||||||||
+ Cost of the reserve for retirement payments | 18,052 | 20,097 | 11 | % | 2,045 | 1,822 | ||||||||||||||
EBITDA | 188,352 | 169,355 | -10 | % | (18,997 | ) | 15,351 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. |
18/32
PEMEX | Corporate Finance Office — Investor Relations |
As of March 31, 2007, our assets totaled Ps. 1,205.9 billion (US$109.3 billion), representing a 4% increase, or Ps. 45.0 billion, as compared to total assets as of March 31, 2006. The variation in the components of total assets were as follows: | ||
• properties and equipment increased by 6%, or Ps. 40.3 billion, | ||
• cash and cash equivalents increased by 28%, or Ps. 38.7 billion, | ||
• accounts receivable decreased by 23%, or Ps. 38.0 billion, | ||
• financial derivative instruments increased by 320%, or Ps. 4.7 billion, | ||
• the value of inventories increased by 6%, or Ps. 3.1 billion, and | ||
• other assets decreased by 3.4%, or Ps. 3.8 billion. |
Total amount | Total liabilities decreased by 0.4%, to Ps. 1,172.1 billion (US$106.2 billion): | |
• short-term liabilities decreased by 15%, or Ps. 28.0 to Ps. 164.7 billion (US$14.9 billion), primarily as a result of a decrease in taxes and duties payable, which was partially offset by an increase in the current portion of long-term debt, i. e. remaining maturities of less than twelve months | ||
• long term liabilities increased by 2%, or Ps. 23.2 to Ps. 1,007.5 billion (US$91.3 billion), primarily due to the increase in the reserve for retirement payments, which was partially offset by a 9% decrease in long-term debt. | ||
Reserve for Retirement Payments | The reserve for retirement payments increased by 16%, from Ps. 407.1billion to Ps. 473.1 billion (US$42.9 billion) according to actuarial studies. |
Equity increased by Ps. 49.8 billion, from Ps. (16.0) billion at March 31, 2006 to Ps. 33.8 billion (or US$3.1 billion at March 31, 2007). The variation in equity was due to: | ||
• a payment from the government to PEMEX in the amount of Ps. 46.8 billion, paid in accordance with the Federal Expenditure Budget for the 2006 fiscal year, | ||
• a decrease of Ps. 18.4 billion in the negative effect of the reserve for retirement payments, | ||
• a decrease of Ps. 12.2 billion in cumulative net losses, due to net income generated in 2006, | ||
• an increase of Ps. 1.8 billion in comprehensive income due to the application of Bulletin C-10 “Derivative Financial Instruments and Hedging Operations”, and | ||
• an increase of Ps. 7.3 billion due in the restatement of equity. This item is linked to the restatement of fixed assets. |
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PEMEX | Corporate Finance Office — Investor Relations |
Operating Income | During the first quarter of 2007, PEMEX ´s operating income totaled Ps.129.7 billion (US$11.8 billion), representing a 16% decrease as compared to the first quarter of 2006 operating income of Ps. 153.7 billion. | |
• PEMEX Exploration and Production’s operating income totaled Ps. 137.4 billion (US$12.5 billion), Ps. 30.4 billion less than in 2006, | ||
• PEMEX Gas and Basic Petrochemicals’ operating income totaled Ps. 3.4 billion (US$0.3 billion), Ps.1.2 billion greater than in 2006, | ||
• PEMEX Refining’s operating loss totaled Ps. 11.2 billion (US$1.0 billion), Ps. 0.2 billion lower than in 2006, | ||
• PEMEX Petrochemicals’ operating loss totaled Ps. 2.9 billion (US$0.3 billion), Ps. 2.4 billion less than in 2006. |
Funds provided by Operating Activities | Funds provided by operating activities totaled Ps. 9.8 billion (US$0.9 billion) in the first quarter of 2007, as compared to Ps. 18.5 billion in the first quarter of 2006. The Ps. 8.7 billion decrease was primarily due to the decrease in net income and a decrease in funds provided by financing activities. | |
Funds Provided by Financing Activities | Funds provided by financing activities totaled Ps. 4.3 billion (US$0.4 billion), as compared to Ps. 17.1 billion in the first quarter of 2006 . The Ps. 12.8 billion decrease was primarily due to a Ps. 22.2 billion decrease in the proceeds from bank loans and debt market funding. | |
Funds used in Investing Activities | Funds used in investing activities totaled Ps. 25.2 billion (US$2.3 billion), as compared to Ps. 21.9 billion in the first quarter of 2006, primarily due to greater investments in properties and equipment. |
20/32
PEMEX | Corporate Finance Office — Investor Relations |
2007 | Estimated capital expenditures for 2007 total Ps. 162.9 billion (US$14.5 billion), out of which PIDIREGAS investments represent Ps. 154.8 billion (US$13.8 billion). | |
The allocation of total capital expenditures by subsidiary entity is as follows: | ||
• Ps. 139.6 billion for Exploration and Production , | ||
• Ps. 18.4 billion for Refining, | ||
• Ps. 3.1 billion for Gas and Basic Petrochemicals, and | ||
• Ps. 1.6 billion for Petrochemicals. | ||
Additionally, Ps. 0.2 billion for Corporate. | ||
These amounts are subject to budgetary adjustments. |
Funding activities | During the first quarter of 2007, US$534 million of new financing was raised in the international financial markets through Export Credit Agencies (ECA ´s). | |
2007 Funding Program | PEMEX is planning to raise between US$1 billion and US$2 billion to finance its investment program for 2007. This amount is subject to changes in the investment program of PEMEX and budgetary adjustments. |
Total Amount | Total consolidated debt11, including accrued interest, totaled Ps. 578.9 billion (US$52.5 billion) at March 21, 2007. This figure represents a decrease of 0.4%, or Ps. 2.3 billion, as compared to the total at March 31, 2006, primarily due to a decrease in long-term debt: | |
• Debt with less than twelve months maturity totaled Ps. 78.2 billion (US$7.1 billion), | ||
• Long-term debt totaled Ps. 500.6 billion (US$45.4 billion). | ||
Net Debt | Net debt or the difference between total debt and cash equivalents, decreased by Ps. 41.0 billion, from Ps. 440.6 billion at March 31. 2006 to Ps. 399.6 billion (US$36.2 billion) at March 31, 2007. |
11 | Total consolidated debt is comprised by documented debt of Petróleos Mexicanos, the PemexProject Funding Master Trust, the Fideicomiso F/163, RepCon Lux S.A. and PEMEX Finance, Ltd. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated total debt
As of March 31, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total debt | 581,152 | 578,881 | -0.4 | % | (2,271 | ) | 52,472 | |||||||||||||
Short-term | 31,967 | 78,244 | 145 | % | 46,278 | 7,092 | ||||||||||||||
Long-term | 549,185 | 500,636 | -9 | % | (48,549 | ) | 45,380 | |||||||||||||
Cash & cash equivalents | 140,565 | 179,313 | 28 | % | 38,747 | 16,254 | ||||||||||||||
Total net debt | 440,586 | 399,568 | -9 | % | (41,019 | ) | 36,218 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. |
Maturity Profile | The following table shows the maturity profile of PEMEX’s total debt: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Maturity profile
As of March 31, | ||||||||||||
(Ps. mm) | US$mm | |||||||||||
Documented debt in pesos | 110,896 | 10,052 | ||||||||||
2007 | 13,453 | 1,219 | ||||||||||
January - March 2008 | 444 | 40 | ||||||||||
April 2008 - March 2009 | 4,389 | 398 | ||||||||||
April 2009 - March 2010 | 26,013 | 2,358 | ||||||||||
April 2010 - March 2011 | 7,572 | 686 | ||||||||||
April 2011 and beyond | 59,026 | 5,350 | ||||||||||
Documented debt in other currencies | 467,984 | 42,420 | ||||||||||
2007 | 48,335 | 4,381 | ||||||||||
January - March 2008 | 16,013 | 1,451 | ||||||||||
April 2008 - March 2009 | 50,567 | 4,584 | ||||||||||
April 2009 - March 2010 | 44,173 | 4,004 | ||||||||||
April 2010 - March 2011 | 54,104 | 4,904 | ||||||||||
April 2011 and beyond | 254,793 | 23,095 | ||||||||||
Total debt | 578,881 | 52,472 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. |
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PEMEX | Corporate Finance Office — Investor Relations |
Duration | The following table presents average duration of debt exposure: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Average duration of debt exposure
As of March 31, | ||||||||||||
2006 | 2007 | Change | ||||||||||
(Years) | ||||||||||||
U.S. Dollars | 4.2 | 4.0 | (0.18 | ) | ||||||||
Mexican pesos | 2.1 | 2.3 | 0.1 | |||||||||
Euros | 1.5 | 3.4 | 1.9 | |||||||||
Japanese yen | 2.1 | 1.6 | (0.5 | ) | ||||||||
Swiss francs | 0.2 | 0.0 | (0.2 | ) | ||||||||
Total | 3.8 | 3.6 | (0.1 | ) |
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 March 31, 2007, approximately 61% of PEMEX’s debt exposure carried fixed interest rates, and the remaining 39% carried floating rates. | |
Debt Exposure | The following table sets forth PEMEX’s debt exposure to currency and interest rate risk: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Debt exposure
(excluding accrued interest)
As of March 31, | ||||||||||||||||||||||||
2006 | 2007 | 2006 | 2007 | 2006 | 2007 | |||||||||||||||||||
Percentage | ||||||||||||||||||||||||
By currency | At fixed rate | At floating rate | ||||||||||||||||||||||
U.S. Dollars | 80.0 | % | 79.9 | % | 65.1 | % | 64.9 | % | 34.9 | % | 35.1 | % | ||||||||||||
Mexican pesos | 19.8 | % | 20.0 | % | 49.0 | % | 47.1 | % | 51.0 | % | 52.9 | % | ||||||||||||
Euros | 0.003 | % | 0.001 | % | 38.5 | % | 100.0 | % | 61.5 | % | 0.0 | % | ||||||||||||
Japanese yen | 0.13 | % | 0.10 | % | 100.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
Swiss francs | 0.0001 | % | — | — | — | 100.0 | % | — | ||||||||||||||||
Total | 100.0 | % | 100.0 | % | 61.9 | % | 61.4 | % | 38.1 | % | 38.6 | % |
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PEMEX | Corporate Finance Office — Investor Relations |
3rd Financed Public Work Contracts | During the first quarter of 2007, Petroleos Mexicanos finished its third Financed Public Work Contracts (FPWC) bidding process for the Burgos Basin. The process comprised three contracts, two for the execution of development, infrastructure and maintenance services for non associated gas in the Nejo and Monclova blocks and the third for development, infrastructure and maintenance services for non associated gas in the Euro block. | |
Only the first two contracts were awarded. The maximum term for the awarded contracts is 15 years, during which the aggregate investments are expected to total US$1,345 million. During the first three years, investments are expected to amount to at least, US$177 million. | ||
No proposals were presented for the Euro block. Hence, PEMEX will reassess the terms and conditions for this contract and define a new strategy for the new bidding process. | ||
Incidents | During the first months of 2007, the following incidents occurred in the states of Veracruz and Tabasco: | |
• On January 22, 2007, vandalism caused an ethane leakage in the Pemex -Coatzacoalcos pipeline, causing an explosion. The incident was detected and controlled with no personal injuries reported. | ||
• On April 23, 2007, a fire was registered in the wellhead SEN 95, located in Nacajuca, Tabasco. The incident was controlled without environmental damage, although unfortunately, one worker from Supertrol, Inc died and two workers suffered minor injuries. | ||
• On April 25, 2007, an accident in the Sonora rig occurred. Unfortunately, three workers from PEMEX died and four workers from contracting firms suffered serious injuries. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Crude oil production by selected fields (quarterly)
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | |||||||||||||||||||||||||||||||||||||||||||
(Mbd) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3,012 | 3,127 | 3,177 | 3,371 | 3,383 | 3,316 | 3,425 | 3,286 | 3,306 | 3,345 | 3,329 | 3,247 | 3,104 | 3,158 | ||||||||||||||||||||||||||||||||||||||||||
Northeast Marine Region | 1,763 | 1,986 | 2,152 | 2,416 | 2,441 | 2,375 | 2,450 | 2,305 | 2,300 | 2,334 | 2,289 | 2,174 | 2,026 | 2,074 | ||||||||||||||||||||||||||||||||||||||||||
Akal and Nohoch | 1,420 | 1,673 | 1,851 | 2,054 | 2,079 | 2,067 | 2,041 | 1,905 | 1,883 | 1,882 | 1,797 | 1,698 | 1,564 | 1,529 | ||||||||||||||||||||||||||||||||||||||||||
Ku | 205 | 176 | 185 | 197 | 191 | 159 | 213 | 213 | 225 | 244 | 278 | 282 | 272 | 310 | ||||||||||||||||||||||||||||||||||||||||||
Zaap | 30 | 26 | 21 | 41 | 57 | 53 | 77 | 75 | 71 | 82 | 76 | 66 | 62 | 89 | ||||||||||||||||||||||||||||||||||||||||||
Maloob | 50 | 45 | 35 | 50 | 53 | 38 | 51 | 48 | 50 | 57 | 64 | 50 | 45 | 55 | ||||||||||||||||||||||||||||||||||||||||||
Chac | 18 | 22 | 17 | 20 | 17 | 10 | 13 | 12 | 12 | 13 | 13 | 12 | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Kutz | — | 5 | 9 | 13 | 12 | 10 | 14 | 11 | 11 | 12 | 12 | 12 | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 40 | 40 | 32 | 41 | 32 | 37 | 40 | 39 | 48 | 44 | 50 | 56 | 59 | 69 | ||||||||||||||||||||||||||||||||||||||||||
Southwest Marine Region | 622 | 554 | 452 | 398 | 388 | 381 | 394 | 390 | 419 | 428 | 454 | 498 | 519 | 522 | ||||||||||||||||||||||||||||||||||||||||||
Caan | 182 | 163 | 133 | 114 | 108 | 102 | 100 | 95 | 94 | 93 | 90 | 86 | 84 | 75 | ||||||||||||||||||||||||||||||||||||||||||
Chuc | 140 | 118 | 107 | 99 | 93 | 98 | 103 | 99 | 112 | 111 | 106 | 110 | 99 | 96 | ||||||||||||||||||||||||||||||||||||||||||
Abkatún | 108 | 103 | 80 | 69 | 54 | 49 | 47 | 41 | 38 | 34 | 31 | 29 | 27 | 27 | ||||||||||||||||||||||||||||||||||||||||||
Taratunich | 50 | 43 | 39 | 36 | 33 | 27 | 24 | 17 | 19 | 24 | 33 | 39 | 40 | 39 | ||||||||||||||||||||||||||||||||||||||||||
Pol | 74 | 62 | 42 | 35 | 25 | 19 | 18 | 16 | 14 | 14 | 13 | 13 | 15 | 18 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 69 | 64 | 51 | 44 | 75 | 86 | 102 | 122 | 142 | 152 | 181 | 220 | 255 | 268 | ||||||||||||||||||||||||||||||||||||||||||
South Region | 550 | 509 | 498 | 483 | 473 | 479 | 495 | 508 | 504 | 499 | 501 | 491 | 474 | 475 | ||||||||||||||||||||||||||||||||||||||||||
Puerto Ceiba | 17 | 21 | 38 | 46 | 77 | 77 | 81 | 81 | 70 | 63 | 59 | 52 | 45 | 42 | ||||||||||||||||||||||||||||||||||||||||||
Samaria | 83 | 83 | 71 | 73 | 62 | 60 | 64 | 68 | 69 | 66 | 64 | 64 | 61 | 67 | ||||||||||||||||||||||||||||||||||||||||||
Iride | 45 | 43 | 43 | 44 | 46 | 48 | 50 | 51 | 52 | 51 | 50 | 46 | 46 | 46 | ||||||||||||||||||||||||||||||||||||||||||
Jujo | 61 | 56 | 56 | 51 | 44 | 45 | 52 | �� | 51 | 51 | 54 | 58 | 59 | 55 | 53 | |||||||||||||||||||||||||||||||||||||||||
Cunduacán | 24 | 22 | 21 | 23 | 26 | 28 | 30 | 27 | 25 | 23 | 23 | 21 | 18 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Tecominoacán | 32 | 29 | 27 | 23 | 20 | 20 | 22 | 23 | 25 | 28 | 31 | 30 | 26 | 25 | ||||||||||||||||||||||||||||||||||||||||||
Cárdenas | 23 | 20 | 16 | 14 | 13 | 11 | 14 | 18 | 18 | 19 | 21 | 18 | 15 | 15 | ||||||||||||||||||||||||||||||||||||||||||
Sen | 30 | 33 | 31 | 21 | 13 | 17 | 18 | 19 | 21 | 22 | 22 | 21 | 21 | 21 | ||||||||||||||||||||||||||||||||||||||||||
Pijije | 4 | 5 | 9 | 12 | 11 | 10 | 12 | 14 | 14 | 14 | 15 | 15 | 14 | 14 | ||||||||||||||||||||||||||||||||||||||||||
Jolote | 20 | 16 | 15 | 12 | 11 | 9 | 10 | 10 | 9 | 9 | 9 | 9 | 8 | 7 | ||||||||||||||||||||||||||||||||||||||||||
Cactus | 11 | 12 | 10 | 12 | 11 | 11 | 9 | 9 | 8 | 8 | 9 | 9 | 8 | 9 | ||||||||||||||||||||||||||||||||||||||||||
Bellota | 10 | 9 | 10 | 8 | 9 | 10 | 9 | 9 | 8 | 8 | 8 | 8 | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||
Chinchorro | 10 | 10 | 9 | 10 | 9 | 8 | 8 | 8 | 7 | 7 | 7 | 7 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Yagual | 4 | 4 | 4 | 4 | 6 | 11 | 11 | 13 | 12 | 11 | 10 | 11 | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Rodador | 2 | 2 | 3 | 7 | 6 | 5 | 5 | 5 | 6 | 4 | 4 | 5 | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 174 | 144 | 136 | 122 | 108 | 108 | 101 | 104 | 110 | 111 | 112 | 117 | 123 | 129 | ||||||||||||||||||||||||||||||||||||||||||
North Region | 77 | 79 | 75 | 74 | 81 | 81 | 86 | 84 | 83 | 84 | 85 | 84 | 85 | 87 | ||||||||||||||||||||||||||||||||||||||||||
Poza Rica | 10 | 11 | 10 | 10 | 11 | 10 | 10 | 10 | 9 | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||||||||||||||||||||||||||
Arenque | 6 | 8 | 8 | 9 | 8 | 10 | 10 | 9 | 9 | 8 | 9 | 8 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||
Agua Fría | 3 | 2 | 2 | 2 | 7 | 6 | 6 | 5 | 6 | 7 | 8 | 8 | 6 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Tajín | 2 | 1 | 1 | 3 | 6 | 6 | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 7 | ||||||||||||||||||||||||||||||||||||||||||
Tamaulipas | 8 | 8 | 7 | 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 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 42 | 41 | 40 | 39 | 39 | 39 | 43 | 43 | 43 | 43 | 43 | 44 | 47 | 48 |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Natural gas production by selected fields (quarterly)
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | |||||||||||||||||||||||||||||||||||||||||||
(MMcfd) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4,679 | 4,511 | 4,423 | 4,498 | 4,573 | 4,640 | 4,861 | 4,839 | 4,928 | 5,094 | 5,281 | 5,478 | 5,565 | 5,816 | ||||||||||||||||||||||||||||||||||||||||||
Northeast Marine Region | 737 | 794 | 831 | 940 | 947 | 918 | 965 | 914 | 915 | 931 | 958 | 923 | 870 | 992 | ||||||||||||||||||||||||||||||||||||||||||
Akal and Nohoch | 543 | 610 | 676 | 750 | 759 | 755 | 745 | 695 | 687 | 687 | 698 | 675 | 634 | 740 | ||||||||||||||||||||||||||||||||||||||||||
Ku | 133 | 123 | 98 | 111 | 101 | 82 | 106 | 109 | 115 | 127 | 152 | 150 | 137 | 146 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 60 | 61 | 57 | 80 | 88 | 81 | 113 | 110 | 113 | 117 | 108 | 99 | 99 | 106 | ||||||||||||||||||||||||||||||||||||||||||
Southwest Marine Region | 820 | 736 | 621 | 581 | 603 | 601 | 654 | 656 | 707 | 750 | 810 | 908 | 953 | 985 | ||||||||||||||||||||||||||||||||||||||||||
Caan | 278 | 258 | 215 | 206 | 215 | 207 | 216 | 205 | 198 | 196 | 189 | 181 | 176 | 171 | ||||||||||||||||||||||||||||||||||||||||||
Chuc | 177 | 148 | 131 | 119 | 95 | 97 | 108 | 117 | 130 | 118 | 113 | 121 | 109 | 107 | ||||||||||||||||||||||||||||||||||||||||||
Taratunich | 75 | 67 | 65 | 67 | 66 | 54 | 49 | 32 | 37 | 57 | 73 | 87 | 81 | 79 | ||||||||||||||||||||||||||||||||||||||||||
Sinan | — | — | — | 1 | 48 | 63 | 80 | 89 | 88 | 94 | 104 | 156 | 136 | 140 | ||||||||||||||||||||||||||||||||||||||||||
Abkatún | 82 | 78 | 62 | 56 | 47 | 43 | 42 | 33 | 27 | 33 | 31 | 29 | 29 | 29 | ||||||||||||||||||||||||||||||||||||||||||
Uech | 51 | 45 | 43 | 40 | 37 | 28 | 25 | 22 | 25 | 26 | 28 | 30 | 25 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 157 | 139 | 104 | 92 | 94 | 109 | 134 | 160 | 203 | 226 | 272 | 304 | 398 | 435 | ||||||||||||||||||||||||||||||||||||||||||
South Region | 1,857 | 1,743 | 1,704 | 1,630 | 1,495 | 1,419 | 1,408 | 1,398 | 1,377 | 1,361 | 1,318 | 1,355 | 1,375 | 1,365 | ||||||||||||||||||||||||||||||||||||||||||
Muspac | 216 | 212 | 235 | 215 | 145 | 124 | 116 | 117 | 104 | 92 | 86 | 81 | 78 | 76 | ||||||||||||||||||||||||||||||||||||||||||
Samaria | 113 | 114 | 94 | 99 | 102 | 94 | 89 | 89 | 79 | 78 | 76 | 81 | 76 | 107 | ||||||||||||||||||||||||||||||||||||||||||
Catedral | 134 | 123 | 124 | 128 | 100 | 82 | 75 | 71 | 68 | 66 | 54 | 53 | 49 | 44 | ||||||||||||||||||||||||||||||||||||||||||
Giraldas | 96 | 102 | 103 | 96 | 89 | 83 | 78 | 69 | 67 | 64 | 61 | 63 | 63 | 60 | ||||||||||||||||||||||||||||||||||||||||||
Copano | 79 | 86 | 80 | 82 | 78 | 70 | 68 | 64 | 59 | 60 | 55 | 53 | 51 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Cunduacán | 64 | 57 | 51 | 55 | 71 | 77 | 90 | 90 | 94 | 99 | 101 | 97 | 92 | 85 | ||||||||||||||||||||||||||||||||||||||||||
Iride | 68 | 76 | 74 | 77 | 70 | 83 | 92 | 96 | 102 | 109 | 109 | 101 | 106 | 108 | ||||||||||||||||||||||||||||||||||||||||||
Puerto Ceiba | 11 | 18 | 24 | 29 | 53 | 52 | 54 | 53 | 47 | 43 | 39 | 35 | 32 | 29 | ||||||||||||||||||||||||||||||||||||||||||
Jujo | 82 | 81 | 71 | 58 | 45 | 46 | 53 | 59 | 59 | 64 | 54 | 54 | 57 | 58 | ||||||||||||||||||||||||||||||||||||||||||
José Colomo | 63 | 60 | 47 | 37 | 36 | 35 | 35 | 36 | 35 | 32 | 31 | 28 | 29 | 29 | ||||||||||||||||||||||||||||||||||||||||||
Sen | 86 | 92 | 91 | 64 | 33 | 41 | 45 | 47 | 53 | 56 | 57 | 55 | 55 | 54 | ||||||||||||||||||||||||||||||||||||||||||
Pijije | 12 | 14 | 26 | 35 | 32 | 29 | 34 | 41 | 42 | 42 | 42 | 43 | 42 | 42 | ||||||||||||||||||||||||||||||||||||||||||
Luna | 110 | 89 | 85 | 51 | 32 | 30 | 21 | 25 | 21 | 21 | 20 | 17 | 18 | 18 | ||||||||||||||||||||||||||||||||||||||||||
Tecominoacán | 40 | 37 | 30 | 25 | 31 | 31 | 36 | 33 | 35 | 40 | 41 | 41 | 37 | 28 | ||||||||||||||||||||||||||||||||||||||||||
Saramako | — | — | 2 | 14 | 28 | 29 | 28 | 25 | 22 | 20 | 19 | 16 | 14 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Cárdenas | 47 | 35 | 31 | 28 | 27 | 26 | 29 | 40 | 38 | 41 | 41 | 38 | 33 | 31 | ||||||||||||||||||||||||||||||||||||||||||
Cactus | 21 | 22 | 19 | 25 | 26 | 25 | 23 | 22 | 22 | 20 | 23 | 24 | 19 | 20 | ||||||||||||||||||||||||||||||||||||||||||
Bellota | 26 | 25 | 28 | 27 | 25 | 26 | 26 | 23 | 24 | 23 | 21 | 21 | 19 | 14 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 590 | 501 | 489 | 486 | 472 | 438 | 415 | 401 | 405 | 393 | 388 | 450 | 505 | 502 | ||||||||||||||||||||||||||||||||||||||||||
North Region | 1,266 | 1,238 | 1,268 | 1,347 | 1,528 | 1,703 | 1,834 | 1,871 | 1,930 | 2,052 | 2,196 | 2,292 | 2,366 | 2,475 | ||||||||||||||||||||||||||||||||||||||||||
Culebra | 320 | 274 | 219 | 201 | 169 | 182 | 185 | 167 | 153 | 157 | 161 | 171 | 183 | 154 | ||||||||||||||||||||||||||||||||||||||||||
Cuitláhuac | 122 | 126 | 109 | 91 | 113 | 116 | 115 | 116 | 117 | 121 | 120 | 116 | 112 | 100 | ||||||||||||||||||||||||||||||||||||||||||
Arcos | 199 | 175 | 148 | 141 | 104 | 76 | 81 | 101 | 109 | 104 | 101 | 100 | 78 | 69 | ||||||||||||||||||||||||||||||||||||||||||
Cocuite | 18 | 27 | 45 | 90 | 101 | 84 | 77 | 71 | 65 | 57 | 52 | 55 | 52 | 42 | ||||||||||||||||||||||||||||||||||||||||||
Vistoso | — | — | — | 8 | 80 | 111 | 118 | 119 | 120 | 120 | 116 | 118 | 113 | 100 | ||||||||||||||||||||||||||||||||||||||||||
Santa Rosalia | 9 | 24 | 63 | 53 | 63 | 56 | 56 | 58 | 71 | 55 | 48 | 46 | 44 | 48 | ||||||||||||||||||||||||||||||||||||||||||
Corindón | 26 | 40 | 59 | 59 | 50 | 45 | 41 | 36 | 49 | 48 | 49 | 46 | 46 | 43 | ||||||||||||||||||||||||||||||||||||||||||
Arcabuz | 93 | 57 | 46 | 33 | 40 | 54 | 67 | 76 | 65 | 71 | 77 | 81 | 79 | 97 | ||||||||||||||||||||||||||||||||||||||||||
Torrecillas | 1 | 5 | 21 | 34 | 39 | 36 | 41 | 41 | 43 | 43 | 35 | 38 | 35 | 34 | ||||||||||||||||||||||||||||||||||||||||||
Velero | 2 | 9 | 13 | 22 | 38 | 50 | 50 | 49 | 51 | 54 | 65 | 73 | 91 | 105 | ||||||||||||||||||||||||||||||||||||||||||
Arenque | 27 | 28 | 29 | 30 | 32 | 31 | 32 | 33 | 31 | 32 | 34 | 34 | 34 | 33 | ||||||||||||||||||||||||||||||||||||||||||
Copite | 47 | 35 | 33 | 27 | 29 | 28 | 27 | 22 | 26 | 27 | 25 | 25 | 25 | 23 | ||||||||||||||||||||||||||||||||||||||||||
Otros | 402 | 439 | 482 | 557 | 669 | 833 | 945 | 982 | 1,030 | 1,163 | 1,311 | 1,390 | 1,472 | 1,625 |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated balance sheet
As of March 31, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Current assets | 359,824 | 368,311 | 2 | % | 8,487 | 33,385 | ||||||||||||||
Cash & cash equivalents | 140,565 | 179,313 | 28 | % | 38,747 | 16,254 | ||||||||||||||
Accounts receivable | 165,886 | 127,843 | -23 | % | (38,043 | ) | 11,588 | |||||||||||||
Inventories | 51,897 | 54,965 | 6 | % | 3,068 | 4,982 | ||||||||||||||
Financial derivative instruments | 1,475 | 6,190 | 320 | % | 4,715 | 561 | ||||||||||||||
Properties and equipment | 688,589 | 728,848 | 6 | % | 40,259 | 66,065 | ||||||||||||||
Other assets | 112,513 | 108,732 | -3 | % | (3,781 | ) | 9,856 | |||||||||||||
Total assets | 1,160,926 | 1,205,891 | 4 | % | 44,965 | 109,306 | ||||||||||||||
Short-term liabilities | 192,671 | 164,656 | -15 | % | (28,015 | ) | 14,925 | |||||||||||||
Short-term debt(1) | 31,967 | 78,244 | 145 | % | 46,278 | 7,092 | ||||||||||||||
Suppliers | 22,984 | 24,699 | 7 | % | 1,715 | 2,239 | ||||||||||||||
Accounts payable and accrued expenses | 30,632 | 12,779 | -58 | % | (17,853 | ) | 1,158 | |||||||||||||
Taxes payable | 93,586 | 35,135 | -62 | % | (58,451 | ) | 3,185 | |||||||||||||
Financial derivative instruments | 13,503 | 13,799 | 2 | % | 296 | 1,251 | ||||||||||||||
Long-term liabilities | 984,266 | 1,007,471 | 2 | % | 23,205 | 91,321 | ||||||||||||||
Long-term debt(2) | 549,185 | 500,636 | -9 | % | (48,549 | ) | 45,380 | |||||||||||||
Reserve for retirement payments, pensions and seniority premiums | 407,063 | 473,056 | 16 | % | 65,993 | 42,880 | ||||||||||||||
Other non-current liabilities(3) | 28,018 | 29,308 | 5 | % | 1,290 | 2,657 | ||||||||||||||
Deferred taxes | — | 4,471 | 4,471 | 405 | ||||||||||||||||
Total liabilities | 1,176,937 | 1,172,127 | -0.4 | % | (4,810 | ) | 106,246 | |||||||||||||
Total equity | (16,011 | ) | 33,764 | 49,775 | 3,060 | |||||||||||||||
Total liabilities & equity | 1,160,926 | 1,205,891 | 4 | % | 44,965 | 109,306 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) -formerly Mex GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. | |
(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. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated income statement
First quarter (Jan. - Mar.) | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total sales | 251,586 | 235,897 | -6 | % | (15,689 | ) | 21,383 | |||||||||||||
Domestic sales | 131,875 | 132,197 | 0.2 | % | 322 | 11,983 | ||||||||||||||
Exports | 119,711 | 103,700 | -13 | % | (16,011 | ) | 9,400 | |||||||||||||
Costs and expenses(1) | 97,911 | 106,236 | 9 | % | 8,325 | 9,630 | ||||||||||||||
Cost of sales | 79,351 | 88,073 | 11 | % | 8,722 | 7,983 | ||||||||||||||
Distribution expenses | 5,728 | 5,895 | 3 | % | 167 | 534 | ||||||||||||||
Administrative expenses | 12,833 | 12,268 | -4 | % | (565 | ) | 1,112 | |||||||||||||
Operating income | 153,675 | 129,662 | -16 | % | (24,014 | ) | 11,753 | |||||||||||||
Comprehensive financing cost | 3,790 | 10,224 | 170 | % | 6,435 | 927 | ||||||||||||||
Other expenses (revenues)(2) | (6,674 | ) | (4,410 | ) | 2,264 | (400 | ) | |||||||||||||
Income before taxes and duties | 156,559 | 123,847 | -21 | % | (32,712 | ) | 11,226 | |||||||||||||
Taxes and duties | 148,481 | 133,990 | -10 | % | (14,491 | ) | 12,145 | |||||||||||||
Hydrocarbon duties and other | 148,481 | 133,990 | -10 | % | (14,491 | ) | 12,145 | |||||||||||||
Net income (loss) | 8,078 | (10,143 | ) | (18,222 | ) | (919 | ) |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) -formerly Mex GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. | |
(1) | Includes the cost of the reserve for retirment payments, pensions and indemnities. | |
(2) | Includes revenues from the negative rate of the Special Tax on Production and Services (IEPS) |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Equity
As of March 31, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total equity | (16,011 | ) | 33,764 | -311 | % | 49,775 | 3,060 | |||||||||||||
Certificates of contribution “A” | 94,306 | 94,306 | — | 8,548 | ||||||||||||||||
Capitalized proceeds | 82,872 | 129,650 | 56 | % | 46,778 | 11,752 | ||||||||||||||
Effect of the reserve for retirement payments | (28,649 | ) | (47,005 | ) | 64 | % | (18,356 | ) | (4,261 | ) | ||||||||||
Comprehensive income | (3,511 | ) | (1,673 | ) | -52 | % | 1,838 | (152 | ) | |||||||||||
Restatement of equity | 151,742 | 159,063 | 5 | % | 7,321 | 14,418 | ||||||||||||||
Accumulated net income (losses) | (312,771 | ) | (300,578 | ) | -4 | % | 12,193 | (27,246 | ) | |||||||||||
From prior years | (320,850 | ) | (290,435 | ) | -9 | % | 30,415 | (26,326 | ) | |||||||||||
Net income (loss) for the period | 8,078 | (10,143 | ) | (18,222 | ) | (919 | ) |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. Note: Numbers may not total due to rounding. |
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PEMEX | Corporate Finance Office — Investor Relations |
Changes in financial position
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Consolidated statements of changes in financial position
�� | ||||||||||||||||||||
As of March 31, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income (loss) | 8,078 | (10,143 | ) | (18,222 | ) | (919 | ) | |||||||||||||
Charges to operations not requiring the use of funds: | 28,003 | 35,283 | 26 | % | 7,281 | 3,198 | ||||||||||||||
Depreciation and amortization | 9,951 | 15,186 | 53 | % | 5,236 | 1,377 | ||||||||||||||
Other non-cash flow items | 18,052 | 20,097 | 11 | % | 2,045 | 1,822 | ||||||||||||||
Funds from net income (loss) | 36,081 | 25,140 | -30 | % | (10,941 | ) | 2,279 | |||||||||||||
Changes in working capital: | (17,611 | ) | (15,371 | ) | 2,240 | (1,393 | ) | |||||||||||||
Accounts, notes receivable and other | (43,247 | ) | 4,481 | 47,728 | 406 | |||||||||||||||
Inventories | 1,353 | 8,946 | 561 | % | 7,592 | 811 | ||||||||||||||
Intangible asset derived from actuarial computation of labor obligations and other assets | (612 | ) | (208 | ) | -66 | % | 404 | (19 | ) | |||||||||||
Suppliers | (9,528 | ) | (11,389 | ) | 20 | % | (1,861 | ) | (1,032 | ) | ||||||||||
Other liabilities | 34,422 | (17,201 | ) | (51,623 | ) | (1,559 | ) | |||||||||||||
Funds provided by (used) in operating activities | 18,470 | 9,769 | -47 | % | (8,701 | ) | 886 | |||||||||||||
Financing activities | 16,520 | 4,325 | -74 | % | (12,195 | ) | 392 | |||||||||||||
Bank loans | 8,961 | — | -100 | % | (8,961 | ) | — | |||||||||||||
Securities | 19,165 | 5,894 | -69 | % | (13,271 | ) | 534 | |||||||||||||
Other financing | 1,893 | — | (1,893 | ) | — | |||||||||||||||
Amortization of bank loans | (12,474 | ) | — | -100 | % | 12,474 | — | |||||||||||||
Amortization of securities | (1,024 | ) | (4,260 | ) | 316 | % | (3,236 | ) | (386 | ) | ||||||||||
Amortization of other financing | — | — | — | — | ||||||||||||||||
Other items | — | 2,692 | 2,692 | 244 | ||||||||||||||||
Own financing activities | 617 | — | -100 | % | (617 | ) | — | |||||||||||||
Equity movements | 617 | — | (617 | ) | — | |||||||||||||||
Funds provided by (used) in financing activities | 17,137 | 4,325 | -75 | % | (12,812 | ) | 392 | |||||||||||||
Investing activities | ||||||||||||||||||||
Acquisition of property, plants and equipment | (23,071 | ) | (27,006 | ) | 17 | % | (3,935 | ) | (2,448 | ) | ||||||||||
Sale of other permanent investments | 1,148 | 1,804 | 656 | 164 | ||||||||||||||||
Other items | — | — | — | — | ||||||||||||||||
Funds provided by (used) in investing activities | (21,923 | ) | (25,202 | ) | (3,279 | ) | (2,284 | ) | ||||||||||||
Net increase in cash and cash equivalents | 13,684 | (11,108 | ) | -181 | % | (24,792 | ) | (1,007 | ) | |||||||||||
Cash and cash equivalents at the beginning of the year | 126,881 | 140,565 | 11 | % | 13,684 | 12,741 | ||||||||||||||
Cash and cash equivalents at the end of the year | 140,565 | 129,457 | -8 | % | (11,108 | ) | 11,735 | |||||||||||||
Funds provided by (used) in operating activities | 18,470 | 9,769 | 47 | % | (8,701 | ) | 886 | |||||||||||||
Funds provided by (used) in investing activities | (21,923 | ) | (25,202 | ) | 15 | % | (3,279 | ) | (2,284 | ) | ||||||||||
Free cash-flow** | (3,453 | ) | (15,433 | ) | (11,980 | ) | (1,399 | ) |
* | Derived from unaudited consolidated financial statements prepared in accordance with Financial Information Regulations (NIF) -formerly Mex GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. | |
** | Free cashflow is not registered under NIF but are reconciled to NIF as set forth above. |
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PEMEX | Corporate Finance Office — Investor Relations |
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 March 31, 2007
Subsidiary | ||||||||||||||||||||||||||||
Exploration and | Gas and Basic | Companies and | Intersegment | |||||||||||||||||||||||||
Production | Refining(1) | Petrochemicals | Petrochemicals | Corporate | Eliminations | Total | ||||||||||||||||||||||
Three months ending March 31, 2007 | ||||||||||||||||||||||||||||
Total sales | 181,649 | 102,639 | 53,018 | 13,084 | 143,138 | (257,631 | ) | 235,897 | ||||||||||||||||||||
External clients | — | 93,779 | 33,363 | 5,055 | 103,700 | — | 235,897 | |||||||||||||||||||||
Intersegment | 181,649 | 8,860 | 19,655 | 8,029 | 39,438 | (257,631 | ) | — | ||||||||||||||||||||
Operating income (loss) | 137,369 | (11,210 | ) | 3,436 | (2,856 | ) | 3,095 | (172 | ) | 129,662 | ||||||||||||||||||
Net income (loss) | (2,927 | ) | (9,069 | ) | 2,605 | (2,939 | ) | (17,185 | ) | 19,372 | (10,143 | ) | ||||||||||||||||
As of March 31, 2007 | ||||||||||||||||||||||||||||
Assets | 1,090,522 | 333,777 | 135,926 | 71,444 | 2,062,206 | (2,487,985 | ) | 1,205,891 | ||||||||||||||||||||
Three months ending March 31, 2006 | ||||||||||||||||||||||||||||
Total sales | 203,885 | 101,935 | 54,880 | 6,359 | 163,875 | (279,348 | ) | 251,586 | ||||||||||||||||||||
External clients | — | 93,530 | 33,422 | 4,706 | 119,928 | — | 251,586 | |||||||||||||||||||||
Intersegment | 203,885 | 8,405 | 21,458 | 1,653 | 43,947 | (279,348 | ) | — | ||||||||||||||||||||
Operating income (loss) | 167,807 | (11,437 | ) | 2,263 | (5,266 | ) | (3,837 | ) | 4,146 | 153,676 | ||||||||||||||||||
Net income (loss) | 17,581 | (8,800 | ) | 1,778 | (6,048 | ) | 8,422 | (4,854 | ) | 8,079 | ||||||||||||||||||
As of March 31, 2006 | ||||||||||||||||||||||||||||
Assets | 937,889 | 321,981 | 119,994 | 53,242 | 1,662,322 | (1,934,503 | ) | 1,160,925 |
* | 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 NIF. Accordingly, peso figures are presented in constant Mexican pesos as of March 31, 2007. | |
(1) | External clients sales of Refining are net of the Special Tax on Production and Services (IEPS). |
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PEMEX | Corporate Finance Office — Investor Relations |
Telephone: | (52 55) 1944 9700 | |
Voice mail: | (52 55) 1944 2500 ext. 59412 |
ctorresu@dcf.pemex.com
rgonzalez@dcf.pemex.com
eosman@dcf.pemex.com
eruizh@dcf.pemex.com
abrugmann@dcf.pemex.com
gregalado@dcf.pemex.com
pnietob@dcf.pemex.com
• | drilling and other exploration activities; | ||
• | import and export activities; | ||
• | projected and targeted capital expenditures and other costs, commitments and revenues; and liquidity. |
• | 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. |
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![(PEMEX LOGO)](https://capedge.com/proxy/6-K/0001362310-07-001648/c70909c7090902.gif)
as of June 30, 2007
PEMEX, Mexico’s oil and gas company and the tenth largest integrated oil company in the world1, announced its unaudited consolidated financial results as of June 30, 2007. | ||
2Q07 Financial Highlights | l Total sales decreased by 5% as compared to the second quarter of 2006, amounting to Ps. 277.6 billion in the second quarter of 2007, in pesos with June 30, 2007 purchasing power parity (US$25.7 billion)2 | |
l Income before taxes and duties increased by 8%, as compared to the second quarter of 2006, to Ps. 176.6 billion (US$16.4 billion) | ||
l EBITDA decreased by 3%, as compared to the second quarter of 2006, to Ps. 217.9 billion (US$20.2 billion) | ||
l Net income was Ps. 37.1 billion (US$3.4 billion) in the second quarter of 2007, as compared to net income of Ps. 8.1 billion in the second quarter of 2006 |
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | 2007 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Total Sales | 292,616 | 277,578 | -5 | % | (15,039 | ) | 25,714 | 543,192 | 512,526 | -6 | % | (30,665 | ) | 47,480 | ||||||||||||||||||||||||||
Domestic Sales | 141,564 | 147,181 | 4 | % | 5,617 | 13,635 | 272,909 | 278,846 | 2 | % | 5,937 | 25,832 | ||||||||||||||||||||||||||||
Exports | 151,053 | 130,397 | -14 | % | (20,656 | ) | 12,080 | 270,283 | 233,680 | -14 | % | (36,603 | ) | 21,648 | ||||||||||||||||||||||||||
Cost of Sales | 111,473 | 109,614 | -2 | % | (1,859 | ) | 10,155 | 190,505 | 197,333 | 4 | % | 6,829 | 18,281 | |||||||||||||||||||||||||||
Gross Profit | 181,144 | 167,963 | -7 | % | (13,180 | ) | 15,560 | 352,687 | 315,193 | -11 | % | (37,494 | ) | 29,199 | ||||||||||||||||||||||||||
Distribution and Administrative Expenses | 17,050 | 19,664 | 15 | % | 2,614 | 1,822 | 35,536 | 37,753 | 6 | % | 2,218 | 3,497 | ||||||||||||||||||||||||||||
CFC and Other Expenses (Revenues) | 983 | (28,255 | ) | (29,238 | ) | (2,618 | ) | (1,890 | ) | (22,464 | ) | (20,573 | ) | (2,081 | ) | |||||||||||||||||||||||||
Income before Taxes and Duties | 163,111 | 176,554 | 8 | % | 13,444 | 16,356 | 319,041 | 299,903 | -6 | % | (19,138 | ) | 27,783 | |||||||||||||||||||||||||||
Taxes and Duties | 151,030 | 139,483 | -8 | % | (11,546 | ) | 12,922 | 298,914 | 272,935 | -9 | % | (25,979 | ) | 25,284 | ||||||||||||||||||||||||||
Net Income (Loss) | 12,081 | 37,071 | 207 | % | 24,990 | 3,434 | 20,127 | 26,968 | 34 | % | 6,841 | 2,498 | ||||||||||||||||||||||||||||
EBITDA(1) | 225,213 | 217,935 | -3 | % | (7,277 | ) | 20,189 | 412,808 | 386,751 | -6 | % | (26,057 | ) | 35,828 | ||||||||||||||||||||||||||
EBITDA / Financial Cost(2) | 20.5 | 13.5 | 17.2 | 14.6 |
* | Derived from unaudited consolidated financial statements prepared in accordance w ith Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) –formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance w ith Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
(1) | Earnings Before Interests, Taxes, Depreciation and Amortization is a non US-GAAP measure, therefore w e provide a reconciliation w ith net income on page 19. This measure excludes the cost of the reserve for retirement payments. | |
(2) | Excludes capitalized interest. | |
Note: Numbers may not total due to rounding. |
1 | Petroleum Intelligence Weekly ranking, December 2006. | |
2 | Amounts in US dollars are translated at the June 30, 2007, exchange rate of Ps. 10.7946 per dollar. |
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PEMEX | Corporate Finance Office — Investor Relations |
2Q07 Operational Highlights | l During the second quarter of 2007, total natural gas production was 14% higher than production during the second quarter of 2006 | |
l On June 26, 2007, natural gas production registered an unprecedented level of 6,299 million cubic feet (MMcf) | ||
l As anticipated, crude oil production decreased by 163 thousand barrels per day (Mbd) or 5%, averaging 3,166 Mbd, due primarily to the decline in production of Cantarell, which was partially offset by a 76 Mbd production increase at the Ku-Maloob-Zaap asset. |
Crude Oil Production | During the second quarter of 2007, as expected, crude oil production averaged 3,166 Mbd, 5% less than the 3,329 Mbd produced during the second quarter of 2006. Production of heavy crude oil decreased by 8%, while light and extra-light crude oil production increased by 0.4% and 17%, respectively. | |
Heavy crude oil production decreased primarily due to the decline in production of the Cantarell asset, which was partially offset by a 76 Mbd production increase at the Ku-Maloob-Zaap asset, due to the installation of PB-KU-S platform in May 2007. | ||
The increase in light and extra-light crude oil production resulted from the completion of wells in the Litoral de Tabasco project, located in the Southwestern Marine region. |
Production of liquid hydrocarbons
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(Mbd) | (Mbd) | |||||||||||||||||||||||||||||||
Liquid hydrocarbons | 3,778 | 3,593 | -5 | % | (185 | ) | 3,781 | 3,586 | -5 | % | (195 | ) | ||||||||||||||||||||
Crude oil | 3,329 | 3,166 | -5 | % | (163 | ) | 3,337 | 3,162 | -5 | % | (175 | ) | ||||||||||||||||||||
Heavy | 2,330 | 2,134 | -8 | % | (196 | ) | 2,353 | 2,119 | -10 | % | (233 | ) | ||||||||||||||||||||
Light | 830 | 833 | �� | 0.4 | % | 3 | 815 | 846 | 4 | % | 30 | |||||||||||||||||||||
Extra-light | 169 | 199 | 17 | % | 29 | 169 | 197 | 16 | % | 28 | ||||||||||||||||||||||
Natural gas liquids(1) | 449 | 427 | -5 | % | (22 | ) | 444 | 424 | -5 | % | (20 | ) |
(1) | Includes condensates. | |
Note: Numbers may not total due to rounding. |
Natural Gas Production | During the second quarter of 2007, natural gas production was 14% greater than the average production recorded in the second quarter of 2006. On June 26, 2007, natural gas production registered a new record of 6,299 MMcf. | |
The increase in non-associated natural gas production, of 429 MMcfd, was primarily due to the activity in the Lankahuasa, Burgos and Veracruz projects, located in the Northern region. | ||
The production of associated natural gas increased by 322 MMcfd, due to greater production from the Crudo Marino Ligero project located in the Southwestern Marine region and greater production from wells at Cantarell, in the transition zone of the gas-oil contact, in the Northeastern Marine region. |
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PEMEX | Corporate Finance Office — Investor Relations |
Gas Flaring | In the second quarter of 2007, gas flaring represented 5.8% of total natural gas production. The increase with respect to the second quarter of 2006 was primarily due to programmed maintenance, increase in gas production with high nitrogen content in the Northeast Marine region, and downtime in compression equipment in the Marine regions. |
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(MMcfd) | (MMcfd) | |||||||||||||||||||||||||||||||
Total | 5,281 | 6,033 | 14 | % | 752 | 5,188 | 5,925 | 14 | % | 737 | ||||||||||||||||||||||
Associated | 3,072 | 3,394 | 10 | % | 322 | 3,048 | 3,336 | 9 | % | 288 | ||||||||||||||||||||||
Non-associated | 2,210 | 2,639 | 19 | % | 429 | 2,140 | 2,589 | 21 | % | 449 | ||||||||||||||||||||||
Natural gas flaring | 228 | 353 | 55 | % | 125 | 195 | 325 | 66 | % | 130 | ||||||||||||||||||||||
Gas flaring / total production | 4.3 | % | 5.8 | % | 3.8 | % | 5.5 | % |
Note: Numbers may not total due to rounding. |
Completion of Wells | During the second quarter of 2007, PEMEX completed 169 new wells, 10 fewer than during the second quarter of 2006. Of the completed wells, 157 were development wells, 2 fewer than in the second quarter of 2006 due to a planned decrease in drilling equipment at the Burgos project located in the Northern region. | |
Exploratory wells drilled totaled 12, 8 fewer as compared to the second quarter of 2006. This decrease was a result of a decrease in drilling equipment at the Burgos project and reduced activity at the Lankahuasa, Campeche Oriente, Campeche Poniente, and Crudo Ligero projects. | ||
By June 30, 2007, the number of non-associated gas production wells was 2,993, a 9% increase as compared to the number of non-associated gas production wells operating at June 30, 2006. This increase was due to the completion of wells in the Burgos and Veracruz projects located in the Northern Region. |
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(Number of | (Number of | |||||||||||||||||||||||||||||||
wells) | wells) | |||||||||||||||||||||||||||||||
Wells drilled | 179 | 169 | -6 | % | (10 | ) | 349 | 318 | -9 | % | (31 | ) | ||||||||||||||||||||
Development | 159 | 157 | -1 | % | (2 | ) | 312 | 296 | -5 | % | (16 | ) | ||||||||||||||||||||
Exploration | 20 | 12 | -40 | % | (8 | ) | 37 | 22 | -41 | % | (15 | ) | ||||||||||||||||||||
Total operating wells(1) | 6,136 | 6,393 | 4 | % | 257 | |||||||||||||||||||||||||||
Injection | 261 | 277 | 6 | % | 16 | |||||||||||||||||||||||||||
Production | 5,875 | 6,116 | 4 | % | 241 | |||||||||||||||||||||||||||
Crude | 3,118 | 3,123 | 0.2 | % | 5 | |||||||||||||||||||||||||||
Non associated gas | 2,757 | 2,993 | 9 | % | 236 |
(1) | As of June 30 of each year. | |
Note: Numbers may not total due to rounding. |
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PEMEX | Corporate Finance Office — Investor Relations |
Seismic Information | During the second quarter of 2007, the length covered by 2D seismic studies decreased 65%, while the area covered by 3D seismic studies increased by 54% as compared to the same quarter of 2006. The decrease in 2D studies was due to the delay in tendering the Almagres contract, and increase in 3D studies was due to greater availability of equipment for the acquisition of 3D seismic data. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Seismic studies
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
Seismic information | ||||||||||||||||||||||||||||||||
2D (km) | 306 | 106 | -65 | % | (200 | ) | 3,632 | 1,432 | -61 | % | (2,200 | ) | ||||||||||||||||||||
3D (km2) | 614 | 946 | 54 | % | 332 | 7,305 | 3,075 | -58 | % | (4,230 | ) |
Note: Numbers may not total due to rounding. | ||
Numbers include seismic studies for both exploration and development. |
Deep Water Exploration Program | To develop deep water activities, drilling equipment, with a capacity for 3 thousand feet, is operating, also, three rigs have been installed, two for 7 thousand feet and one for 10 thousand feet, which will start operations by 2010. Currently, the Lalail 1 well is being drilled in water depths beyond 1,500 feet. This exploratory well has reached its scheduled depth. | |
Discoveries | Our main discoveries during the second quarter of 2007 were: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Main discoveries
Successful wells in | ||||||||
Project | 2Q07 | Geologic age | Initial production | Type | ||||
Burgos | Calibrador -1 | Paleocene | 3.4 MMcfd | Non associated gas | ||||
Julivá | Pache-1 | Cretaceous | 3.3 Mbd & 9.74 MMcfd | Associated gas & condensates | ||||
Tajón-1 | Cretaceous | 4.5 Mbd & 3.0 MMcfd | Associated gas & condensates |
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PEMEX | Corporate Finance Office — Investor Relations |
Cantarell | The main developments in Cantarell during the second quarter of 2007 were the following: | |
• completion of 7 development wells, | ||
• 21 workovers, | ||
• 13 minor workovers, | ||
• completion of the Takín A platform, and | ||
• drilling of 2 horizontal wells. | ||
The program of events for the second half of 2007 includes the: | ||
• beginning of operations of pipelines at Takin A and Akal TQ platforms, | ||
• completion of 18 development wells, | ||
• drilling of 2 subsea completion wells, | ||
• beginning of operations of two trains at the Nitrogen Recovery Unit in Ciudad Pemex, each with a processing capacity of 300 MMcfd, | ||
• construction of crude and gas pipelines for the Akal DB and BN platforms, and | ||
• completion of 3 horizontal wells. | ||
Ku Maloob Zaap (KMZ) | On June 23, 2007, the Ku-Maloob-Zaap project registered a production record of 563 Mbd after seven new wells started operations in May and June. During the second quarter of 2007, the PB-KU-S platform began operations, which permitted to increase crude production from KMZ to a level exceeding 500 Mbd. In addition four marine pipelines with a total length of 14.4 km were completed. Furthermore, on June 18, el Señor de Mar, a floating production, storage and offloading (FPSO) vessel, began operating. During the second half of the year, we expect to: | |
• begin operations at PB-Zaap-C and PB-KU-H production platforms, | ||
• complete five pipelines with a total length of 18.2 km, | ||
• drill 12 development wells, and | ||
• inject 300 MMcfd of nitrogen. | ||
Integrated Service Contracts | During the second quarter of 2007, Pemex-Exploration and Production signed its first Integrated Service contract for crude oil extraction with a private company. The Integrated Service Contract program aims to increase production in mature fields by 200 Mbd by 2011 through integration of reservoir engineering, infrastructure design and development of complementary works in a single contract. These new contracts differ from the Financed Work Contracts utilized by Pemex-Exploration and Production. The first Integrated Service contract was granted to Grupo Diavaz de Mexico for work in the Ébano-Pánuco fiels, which still contain significant crude oil reserves. |
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PEMEX | Corporate Finance Office — Investor Relations |
Financed Public Work Contracts for Pipeplines | On May 15, 2007, Pemex-Exploration and Production announced the solicitation of bids for the first of four contracts to assure the integrity of hydrocarbon transport systems that it plans to award through competitive bidding. The first contract will be for an amount approximately US$414 million. Work should begin under the contract in January 2008. This work will take place in the pipelines and transportation facilities located in the states of Tabasco, Veracruz, Chiapas and Oaxaca, including the commercialization center of Palomas, the strategic storage center of Tuzandepetl, the Cardenas pumping center and more than 1,700 km of pipelines. This model is a novel structure to contract services for PEMEX. We expect it to provide: | |
• assurance of safety during project execution, including maintenance and technical assistance; | ||
• sharing best practices and technology during execution; | ||
• flexibility in execution with respect to rehabilitations, other concepts and optimization; | ||
• alignment of interests based on performance indicators; | ||
• improved corporate governance; and | ||
• a sustainable development strategy. | ||
2007-2011 Plan for Hiring Vessels | In April 2007, PEMEX announced a plan for hiring vessels for logistics and maintenance. The objective is to promote greater industry participation in the bidding process which will be announced in the coming months and to specify the requirements for each vessel. |
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PEMEX | Corporate Finance Office — Investor Relations |
Gas Processing and Dry Gas Production | During the second quarter of 2007, total on-shore natural gas processing increased by 7% as compared to the second quarter of 2006. This increase was attributable to a 26%, or 239 MMcfd, increase in sweet wet gas processing due to higher production in the Burgos Basin. The processing of sour wet gas increased by 64 MMcfd, primarily due to an increase in production from the Marine regions. Consequently, during the second quarter of 2007, dry gas production increased by 8%. Natural gas liquids production, in contrast, decreased by 5% as compared to the same period of 2006, due to a reduction in the production of condensates from 99 to 79 Mbd. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Natural gas processed and dry gas production
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(MMcfd) | (MMcfd) | |||||||||||||||||||||||||||||||
On-shore gas processed | 4,123 | 4,426 | 7 | % | 303 | 4,070 | 4,397 | 8 | % | 327 | ||||||||||||||||||||||
Sour wet gas | 3,214 | 3,278 | 2 | % | 64 | 3,234 | 3,263 | 1 | % | 30 | ||||||||||||||||||||||
Sweet wet gas | 909 | 1,148 | 26 | % | 239 | 837 | 1,134 | 36 | % | 297 | ||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Dry gas | 3,386 | 3,643 | 8 | % | 257 | 3,335 | 3,644 | 9 | % | 309 | ||||||||||||||||||||||
Natural gas liquids (Mbd)(1) | 449 | 427 | -5 | % | (22 | ) | 444 | 424 | -5 | % | (20 | ) |
Note: Numbers may not total due to rounding.
Infrastructure Projects | By the end of June 2007, the construction of cryogenic plants 5 and 6 in the Burgos Gas Processing Center was 18% completed, 7% ahead of schedule. This was due to acceleration of purchase orders of key equipment. The construction of the foundations of the four storage tanks was concluded. | |
Construction continues in the Emiliano Zapata compression station in the state of Veracruz. The project includes a 48 inch bypass of 20 km to the city of Jalapa. By the end of June, the station was 84% complete and the bypass was 46% complete. It is estimated that the works will be concluded in the first half of 2008. |
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PEMEX | Corporate Finance Office — Investor Relations |
Processing | During the second quarter of 2007, total crude oil processing decreased by 2%, as compared to the same period of the previous year. The decrease was due primarily to scheduled maintenance in the primary plants. | |
Heavy crude oil processing decreased by 9%, while light crude oil processing increased by 2% during the second quarter of 2007. This reflected our strategy to maximize diesel and gasoline production and minimize fuel oil production. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Crude oil processing
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(Mbd) | (Mbd) | |||||||||||||||||||||||||||||||
Total processed | 1,311 | 1,283 | -2 | % | (28 | ) | 1,288 | 1,305 | 1 | % | 16 | |||||||||||||||||||||
Heavy Crude | 514 | 470 | -9 | % | (44 | ) | 517 | 493 | -5 | % | (23 | ) | ||||||||||||||||||||
Light Crude | 797 | 814 | 2 | % | 16 | 771 | 811 | 5 | % | 40 |
Capacity Utilization | As a consequence of the decrease in our crude oil processing during the second quarter of 2007, our primary distillation capacity utilization rate decreased from 85.9% to 84.2%. | |
Production | During the second quarter of 2007, production of refined products decreased by 23 Mbd, as compared to the same period of 2006, falling to an average of 1,548Mbd. | |
Fuel oil production decreased by 3% as a result of lower crude processing. Due to the processing of intermediate products in inventory, gasoline production decreased by 0.2%, whereas diesel production increased by 1%. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Refining production
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(Mbd) | (Mbd) | |||||||||||||||||||||||||||||||
Total production | 1,571 | 1,548 | -1 | % | (23 | ) | 1,556 | 1,566 | 1 | % | 10 | |||||||||||||||||||||
Gasolines | 460 | 459 | -0.2 | % | (1 | ) | 455 | 466 | 2 | % | 11 | |||||||||||||||||||||
Fuel oil | 329 | 318 | -3 | % | (11 | ) | 331 | 319 | -4 | % | (12 | ) | ||||||||||||||||||||
Diesel | 332 | 334 | 1 | % | 2 | 324 | 342 | 6 | % | 18 | ||||||||||||||||||||||
Liquefied petroleum gas (LPG)(1) | 249 | 236 | -5 | % | (13 | ) | 248 | 237 | -4 | % | (11 | ) | ||||||||||||||||||||
Jet Fuel | 68 | 67 | -2 | % | (1 | ) | 65 | 68 | 3 | % | 2 | |||||||||||||||||||||
Other(2) | 133 | 134 | 1 | % | 1 | 132 | 134 | 1 | % | 2 |
(1) | Excludes butilene and propilene and includes isobutanes from Pemex — Gas and butane from Pemex — Petrochemicals | |
(2) | Includes mainly paraffines, furfural extract and aeroflex. |
8/33
PEMEX | Corporate Finance Office — Investor Relations |
Variable Refining Margin | In the second quarter of 2007, PEMEX’s variable refining margin3 increased by 17%, as compared to the second quarter of 2006, from US$10.5 to US$6.9 per barrel, primarily as a result of higher international prices of refined products. | |
Franchises | From June 30, 2006 to June 30, 2007, the number of franchised gas stations rose by 5%, to 7,690 from 7,340 franchises as of June 30, 2006. |
3 | 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, auto consumption (fuel oil and natural gas used to operate the refineries), and auxiliary services (electric power, water and catalysts). |
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PEMEX | Corporate Finance Office — Investor Relations |
Production | During the second quarter of 2007, total petrochemicals production was 3,169 thousand tons (Mt), 14% greater than production recorded in the same quarter of 2006. This increase was primarily driven by: | |
• higher production of methane derivatives and byproducts, primarily due to greater production of ammonia to satisfy the increase in demand for urea production; and | ||
• an increase in production of ethane derivatives, due to higher production of vinyl chloride resulting from a decrease in downtimes. | ||
This increase was partially offset by a decrease in ethylene oxide production, due to lower catalyst activity. |
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
(Mt) | (Mt) | |||||||||||||||||||||||||||||||
Total production | 2,790 | 3,169 | 14 | % | 379 | 5,415 | 6,122 | 13 | % | 706 | ||||||||||||||||||||||
Methane derivatives | ||||||||||||||||||||||||||||||||
Ammonia | 131 | 183 | 40 | % | 52 | 340 | 363 | 7 | % | 23 | ||||||||||||||||||||||
Methanol | 26 | — | — | 49 | — | — | ||||||||||||||||||||||||||
Ethane derivatives | ||||||||||||||||||||||||||||||||
Ethylene | 282 | 278 | -1 | % | (4 | ) | 541 | 541 | -0.1 | % | (1 | ) | ||||||||||||||||||||
Ethylene oxide | 95 | 85 | -11 | % | (10 | ) | 175 | 179 | 2 | % | 4 | |||||||||||||||||||||
Low density polyethylene | 90 | 102 | 12 | % | 11 | 169 | 176 | 4 | % | 8 | ||||||||||||||||||||||
High density polyethylene | 46 | 40 | -13 | % | (6 | ) | 83 | 85 | 2 | % | 2 | |||||||||||||||||||||
Vinyl chloride | 53 | 73 | 37 | % | 20 | 104 | 113 | 9 | % | 9 | ||||||||||||||||||||||
Aromatics and derivatives | ||||||||||||||||||||||||||||||||
Toluene | 62 | 50 | -19 | % | (12 | ) | 87 | 103 | 18 | % | 16 | |||||||||||||||||||||
Ethylbenzene | 34 | 46 | 37 | % | 13 | 64 | 84 | 31 | % | 20 | ||||||||||||||||||||||
Benzene | 38 | 32 | -16 | % | (6 | ) | 54 | 68 | 25 | % | 13 | |||||||||||||||||||||
Propylene and derivatives | ||||||||||||||||||||||||||||||||
Polypropylene | 88 | 93 | 6 | % | 5 | 169 | 172 | 2 | % | 3 | ||||||||||||||||||||||
Others(1) | 1,844 | 2,185 | 18 | % | 340 | 3,580 | 4,238 | 18 | % | 657 |
(1) | Includes glycols, heavy reformed, oxygen, hydrogen, nitrogen, chlorhydric acid, muriatic acid, hexane, heptanes and others. | |
Note: Numbers may not total due to rounding. |
10/33
PEMEX | Corporate Finance Office — Investor Relations |
Crude Oil Exports | During the second quarter of 2007, crude oil exports averaged 1,725 Mbd, 5% less than the volume recorded during the second quarter of 2006, as a result of lower crude oil production. | |
Approximately 88% of total crude oil exports were heavy crude oil (Altamira and Maya); the remainder were 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 (12%), the rest of the Americas (8%) and the Far East (1%). | ||
The weighted average export price of the Mexican crude oil basket was US$56.7 per barrel in the second quarter of 2007, 0.3% higher than the weighted average price of US$56.5 per barrel in the second quarter of 2006. | ||
Refined Products and Petrochemicals’ Exports | Exports of refined products averaged 167 Mbd, 25% fewer than during the second quarter of 2006, primarily due to a decrease in sales of fuel oil and long residue. Naftas and long residue were the main exported refined products. Petrochemical exports totaled 5 Mt, a decrease of 2% due to lower sales volume of ethane derivatives. Sulphur and ammonia were the main exported products. | |
Natural Gas Exports | As a consequence of the increase in natural gas production, exports reached 163 MMcfd during the second quarter of 2007, as compared to 2 MMcfd during the same period in 2006. |
Petróleos Mexicanos, Subsidiary Entitie s and Subsidiary Companies
Exports(1 )
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
Crude oil (Mbd)(2) | ||||||||||||||||||||||||||||||||
Total | 1,813 | 1,725 | -5 | % | (88 | ) | 1,908 | 1,718 | -10 | % | (190 | ) | ||||||||||||||||||||
Heavy | 1,571 | 1,511 | -4 | % | (60 | ) | 1,585 | 1,485 | -6 | % | (100 | ) | ||||||||||||||||||||
Light | 40 | 34 | -13 | % | (5 | ) | 89 | 31 | -65 | % | (58 | ) | ||||||||||||||||||||
Extra-light | 202 | 180 | -11 | % | (23 | ) | 234 | 202 | -14 | % | (32 | ) | ||||||||||||||||||||
Average price (US$/b) | 56.5 | 56.7 | 0.3 | % | 0.2 | 53.16 | 52.32 | -2 | % | (0.8 | ) | |||||||||||||||||||||
Natural Gas (MMcfd) | 2 | 163 | 161 | |||||||||||||||||||||||||||||
Refined products (Mbd) | 221 | 167 | -25 | % | (55 | ) | 192 | 191 | -0.3 | % | (1 | ) | ||||||||||||||||||||
Petrochemicals (Mt) | 229 | 224 | -2 | % | (5 | ) | 433 | 408 | -6 | % | (25 | ) |
(1) | Source: PMI. Does not include third party operations by PMI. | |
(2) | Excludes the volume of crude oil under processing agreements. | |
4 | According to data provided by PMI Comercio Internacional (PMI). |
11/33
PEMEX | Corporate Finance Office — Investor Relations |
Imports | In the second quarter of 2007, natural gas imports averaged 346 MMcfd, 41% less than those recorded during the same period in 2006, due primarily to higher natural gas production by PEMEX. | |
Imports of refined products increased by 20%, from 410 to 494 Mbd. This increase was primarily attributable to greater imports of gasoline, low-sulphur fuel oil and diesel. | ||
Petrochemical imports increased by 16%, to 99 Mt, primarily due to greater domestic demand for methanol. The main imported products were methanol and ethylene. |
Imports(1 )
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
Natural gas (MMcfd) | 589 | 346 | -41 | % | (243 | ) | 479 | 337 | -30 | % | (142 | ) | ||||||||||||||||||||
Refined products (Mbd)(2) | 410 | 494 | 20 | % | 83 | 430 | 454 | 6 | % | 24 | ||||||||||||||||||||||
Petrochemicals (Mt) | 86 | 99 | 16 | % | 13 | 223 | 205 | -8 | % | (18 | ) |
(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 81 Mbd and 87 Mbd of LPG for the first quarters of 2006 and 2007, respectively. |
12/33
PEMEX | Corporate Finance Office — Investor Relations |
Total Sales | During the second quarter of 2007, total sales decreased by 5% in constant pesos, as compared to the second quarter of 2006, from Ps. 292.6 billion to Ps. 277.6 billion. This decrease was primarily due to lower crude oil exports. | |
Domestic Sales | During the second quarter of 2007, domestic sales increased by 4%, as compared to the second quarter of 2006 from Ps. 141.6 billion to Ps. 147.2 billion. The increase was a result of the following: | |
• Natural gas sales increased by 6%, from Ps. 20.7 billion to Ps. 21.9 billion, due to an increase in the average price of natural gas from US$6.43 to US$7.12 per million British Thermal Unit (MMBtu), which was only partially offset by a 1% decrease in the volume of natural gas sold, from 3,078 MMcfd to 3,039 MMcfd. | ||
• Sales of refined products increased by 3%, from Ps. 115.3 billion to Ps. 119.2 billion. The volume of refined products sales increased by 5%, from 1,748 Mbd to 1,841 Mbd. | ||
• Petrochemical product sales increased by 7%, from Ps. 5.6 billion to Ps. 6.0 billion, primarily as a result of a 9% increase in volume, from 952 Mt to 1,041 Mt. |
Domestic sales*
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | 2007 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Domestic sales | 141,564 | 147,181 | 4 | % | 5,617 | 13,635 | 272,909 | 278,846 | 2 | % | 5,937 | 25,832 | ||||||||||||||||||||||||||||
Natural gas | 20,651 | 21,929 | 6 | % | 1,277 | 2,031 | 40,400 | 40,679 | 1 | % | 279 | 3,768 | ||||||||||||||||||||||||||||
Refined products | 115,284 | 119,206 | 3 | % | 3,922 | 11,043 | 221,767 | 226,666 | 2 | % | 4,899 | 20,998 | ||||||||||||||||||||||||||||
Gasoline | 59,013 | 62,281 | 6 | % | 3,268 | 5,770 | 111,679 | 116,759 | 5 | % | 5,080 | 10,816 | ||||||||||||||||||||||||||||
Diesel | 23,265 | 24,129 | 4 | % | 864 | 2,235 | 45,058 | 46,390 | 3 | % | 1,332 | 4,298 | ||||||||||||||||||||||||||||
LPG | 12,802 | 12,745 | -0.4 | % | (57 | ) | 1,181 | 26,715 | 26,803 | 0.3 | % | 88 | 2,483 | |||||||||||||||||||||||||||
Other | 20,204 | 20,050 | -1 | % | (154 | ) | 1,857 | 38,315 | 36,714 | -4 | % | (1,602 | ) | 3,401 | ||||||||||||||||||||||||||
Petrochemical | 5,628 | 6,046 | 7 | % | 418 | 560 | 10,742 | 11,501 | 7 | % | 760 | 1,065 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) –formerly Mexican GAAP – issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance w ith Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
Note: Numbers may not total due to rounding. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Volume of domestic sales
Second quarter (Apr.-Jun.) | Six months ending Jun. 30 | |||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2006 | 2007 | Change | |||||||||||||||||||||||||||
Natural gas (MMcfd) | 3,078 | 3,039 | -1 | % | (39 | ) | 2,901 | 2,973 | 2 | % | 72 | |||||||||||||||||||||
Refined products (Mbd) | 1,748 | 1,841 | 5 | % | 93 | 1,771 | 1,835 | 4 | % | 64 | ||||||||||||||||||||||
Gasoline | 714 | 757 | 6 | % | 43 | 707 | 750 | 6 | % | 43 | ||||||||||||||||||||||
Diesel | 352 | 361 | 3 | % | 9 | 343 | 355 | 3 | % | 11 | ||||||||||||||||||||||
LPG | 289 | 282 | -2 | % | (7 | ) | 305 | 301 | -1 | % | (4 | ) | ||||||||||||||||||||
Other | 393 | 440 | 12 | % | 48 | 416 | 430 | 3 | % | 14 | ||||||||||||||||||||||
Petrochemicals (Mt) | 952 | 1,041 | 9 | % | 89 | 1,870 | 2,047 | 9 | % | 177 |
Note: Numbers may not total due to rounding. |
13/33
PEMEX | Corporate Finance Office — Investor Relations |
Exports | During the second quarter of 2007, export sales totaled Ps. 130.4 billion (US$12.1 billion), 14% less than the exports recorded in the second quarter of 2006, of Ps. 151.1 billion. The decrease was a result of the following: | |
• Crude oil and condensates export sales decreased by 14%, from Ps. 134.4 billion to Ps. 115.3 billion, primarily as a result of a 5% decrease in the volume of crude oil exports, from 1,813 Mbd to 1,725 Mbd, and a 0.3% increase in the weighted average crude oil export price, from US$56.5 to US$56.7 per barrel. | ||
• Natural gas export sales increased from Ps. 0.02 billion to Ps. 1.7 billion, due to an increase in natural gas production. | ||
• Refined products export sales decreased by 20%, from Ps. 15.6 billion to Ps. 12.6 billion, while the volume of exports of refined products decreased by 25%, from 221 to 167 Mt | ||
• Petrochemical products export sales decreased by 22%, from Ps. 1.0 to Ps. 0.8 billion, and the volume of petrochemical exports decreased by 2%, from 229 to 224.5 |
Exports
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | 2007 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Total exports | 151,053 | 130,397 | -14 | % | (20,656 | ) | 12,080 | 270,283 | 233,680 | -14 | % | (36,603 | ) | 21,648 | ||||||||||||||||||||||||||
Crude oil and condensates | 134,365 | 115,319 | -14 | % | (19,046 | ) | 10,683 | 244,117 | 205,169 | -16 | % | (38,948 | ) | 19,007 | ||||||||||||||||||||||||||
Natural gas | 17 | 1,702 | 1,685 | 158 | 284 | 3,175 | 2,892 | 294 | ||||||||||||||||||||||||||||||||
Refined products | 15,647 | 12,573 | -20 | % | (3,074 | ) | 1,165 | 24,218 | 23,886 | -1 | % | (332 | ) | 2,213 | ||||||||||||||||||||||||||
Petrochemical products | 1,023 | 802 | -22 | % | (221 | ) | 74 | 1,664 | 1,450 | -13 | % | (214 | ) | 134 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. |
5 | Since the composition of imports and exports of petrochemical products differs, the effect of changes in prices may be different for imports and exports. |
14/33
PEMEX | Corporate Finance Office — Investor Relations |
Total Amount | In the second quarter of 2007, costs and operating expenses increased by 1%, or Ps. 0.8 billion, as compared to the second quarter of 2006, to Ps. 129.3 billion (US$12.0 billion), primarily due to higher product purchases, which were partially offset by lower depreciation and amortization expenses. | |
Cost of Sales | In the second quarter of 2007, cost of sales decreased by 2%, or Ps. 1.9 billion, as compared to the second quarter of 2006, to Ps. 109.6 billion (US$10.2 billion). The decrease was the result of the following: | |
• a decrease of Ps. 7,7 billion in operating expenses, primarily due to lower exports, | ||
• a decrease of Ps. 4.2 billion in depreciation and amortization expenses, and | ||
• an increase of Ps. 10.3 billion in product purchases. | ||
Distribution Expenses | During the second quarter of 2007, distribution expenses increased by 9%, from Ps. 5.6 billion to Ps. 6.1 billion (US$0.6 billion), primarily due to an increase in the reserve for retirement payments, pensions and seniority premiums. | |
Administrative Expenses | During the second quarter of 2007, administrative expenses increased from Ps. 11.5 billion to Ps. 13.6 billion (US$1.3 billion), primarily due to the effect of the reserve for retirement payments, pensions and seniority premiums. | |
Cost of the Reserve for Retirement Payments | During the second quarter of 2007, the cost of the reserve for retirement payments, pensions and indemnities increased from Ps. 17.9 to Ps. 20.1 billion.6 |
In the second quarter of 2007, operating income totaled Ps. 148.3 billion (US$13.7 billion), 10% less than operating income for the second quarter of 2006 of Ps. 164.1 billion. |
6 | This cost is distributed among cost of sales, distribution expenses and administrative expenses. |
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Total Amount | During the second quarter of 2007, comprehensive financing cost decreased by Ps. 18.7 billion from Ps. 23.3 billion to Ps. 4.6 billion (US$0.4 billion). This reduction resulted from: | |
• a decrease of Ps. 19.2 billion in foreign exchange loss, | ||
• a decrease of Ps. 5.0 billion in monetary loss, and | ||
• an increase of Ps. 5.5 billion in net interest and financial products expense. | ||
Net Interest and Financial Products7 | In the second quarter of 2007, net interest and financial products expense by increased by 87%, from Ps. 6.3 to Ps. 11.7 billion (US$1.1 billion). Interest expense increased by Ps. 5.2 billion, while interest income decreased by Ps. 0.3 billion. | |
Foreign Exchange Loss | In the second quarter of 2007, PEMEX recorded a net foreign exchange gain of Ps. 8.0 billion (US$0.7 billion), as compared to the a net foreign exchange loss of Ps. 11.2 billion in the second quarter of 2006. The reversal from a foreign exchange loss to a foreign exchange gain was primarily a consequence of the 2.2% appreciation of the peso-dollar exchange rate during the second quarter of 2007, in contrast to the 3.6% depreciation recorded during the same period of 2006. | |
Monetary Gain | In the second quarter of 2007, monetary loss was Ps. 0.8 billion (US$0.1 billion), representing a decrease of Ps. 5.0 billion as compared to the second quarter of 2006. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Comprehensive financing cost
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | 2007 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Comprehensive financing cost | 23,274 | 4,553 | -80 | % | (18,721 | ) | 422 | 27,049 | 14,737 | -46 | % | (12,312 | ) | 1,365 | ||||||||||||||||||||||||||
Financial income** | (4,732 | ) | (4,463 | ) | -6 | % | 270 | (413 | ) | (9,881 | ) | (9,521 | ) | -4 | % | 361 | (882 | ) | ||||||||||||||||||||||
Financial cost** | 11,000 | 16,187 | 47 | % | 5,186 | 1,499 | 23,941 | 26,564 | 11 | % | 2,622 | 2,461 | ||||||||||||||||||||||||||||
Foreign exchange loss (gain) | 11,230 | (7,964 | ) | (19,194 | ) | (738 | ) | 15,691 | (158 | ) | (15,850 | ) | (15 | ) | ||||||||||||||||||||||||||
Monetary loss (gain) | 5,777 | 794 | -86 | % | (4,983 | ) | 74 | (2,702 | ) | (2,148 | ) | -21 | % | 554 | (199 | ) |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
** | The financial cost and financial income include the effect of financial derivatives. |
7 | Includes the effect of financial derivatives. |
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PEMEX | Corporate Finance Office — Investor Relations |
In the second quarter of 2007, other net revenues totaled Ps. 32.8 billion (US$3.0 billion), as compared to Ps. 22.3 billion during the second quarter of 2006, primarily due to revaluation of market positions. |
During the second quarter of 2007, income before taxes and duties was Ps. 176.6 billion (US$16.4 billion), as compared to Ps. 163.1 billion recorded in 2006. The 8% increase resulted from: | ||
• a decrease of Ps. 18.7 billion in comprehensive financing cost, | ||
• a decrease of Ps. 15.8 billion in operating income | ||
• an increase of Ps. 10.5 billion in other net revenues. |
Total Amount | During the second quarter of 2007, taxes and duties paid decreased by 8% in real terms, from Ps. 151.0 billion in the second quarter of 2006 to Ps. 139.5 billion, primarily due to lower crude oil exports.9 |
8 | 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 59% in 2006 to 57% in 2007. However, this figure still positions PEMEX among the oil 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 aquasioperating profit. In addition to the payment of the OHD, PEMEX — Exploration and Production pays other duties. | |
9 | Under the current fiscal regime the Special Tax on Production and Services (IEPS) applicable to gasoline and diesel is regulated under the Federal Income Law. PEMEX is an intermediate between the Secretary of Finance and Public Credit (SHCP) and the final consumer; PEMEX retains the IEPS and transfers it to the Federal Government. The difference between the public price, or final price, and the producer price is the IEPS rate. The final price of gasoline and diesel is established by SHCP. The producer price of PEMEX is referenced to that of an efficient refinery in the Gulf of Mexico. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Taxes and duties
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | 2007 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Total taxes and duties | 151,030 | 139,483 | -8 | % | (11,546 | ) | 12,922 | 298,914 | 272,935 | -9 | % | (25,979 | ) | 25,284 | ||||||||||||||||||||||||||
Hydrocarbon duties | 144,794 | 135,250 | -7 | % | (9,120 | ) | 12,529 | 288,454 | 265,467 | -8 | % | 21,011 | 24,593 | |||||||||||||||||||||||||||
Ordinary hydrocarbons duty | 255,748 | 118,838 | (136,909 | ) | 11,009 | 255,748 | 232,602 | (23,146 | ) | 21,548 | ||||||||||||||||||||||||||||||
Duty on crude oil extraction | 23 | — | (23 | ) | — | 23 | — | (23 | ) | — | ||||||||||||||||||||||||||||||
Extraordinary duty on crude oil exports | 8,650 | 1,731 | (6,919 | ) | 160 | 8,650 | 4,047 | (4,604 | ) | 375 | ||||||||||||||||||||||||||||||
Hydrocarbons duty for the oil revenues stabilization fund | 23,919 | 15,226 | (8,693 | ) | 1,411 | 23,919 | 28,979 | 5,060 | 2,685 | |||||||||||||||||||||||||||||||
Duty on hydrocarbons for the fund for scientific and technological research on energy | 212 | 101 | (111 | ) | 9 | 212 | 195 | (17 | ) | 18 | ||||||||||||||||||||||||||||||
Duty for fiscal monitoring of oil activities | 13 | 6 | (7 | ) | 1 | 13 | 12 | (1 | ) | 1 | ||||||||||||||||||||||||||||||
Inflation recognition | (143,770 | ) | (652 | ) | 143,117 | (60 | ) | (110 | ) | (366 | ) | (256 | ) | (34 | ) | |||||||||||||||||||||||||
Excess gains duty | 2,524 | — | (2,524 | ) | — | 4,292 | — | (4,292 | ) | — | ||||||||||||||||||||||||||||||
Other taxes and duties(1) | 3,711 | 4,233 | 14 | % | 522 | 392 | 6,168 | 7,468 | 21 | % | 1,300 | 692 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
(1) | Includes provisions. | |
Note: Numbers may not total due to rounding. |
During the second quarter of 2007, PEMEX recorded net income of Ps. 37.1 billion (US$3.4 billion), this increase is primarily explained by: | ||
• a Ps. 20.0 billion Special Tax on Production and Services (IEPS) credit, | ||
• an Ps. 8.0 billion increase in foreign exchange gains, due to the peso appreciation (2.2%) during the second quarter of 2007. |
During the second quarter of 2007, Earnings Before Interests, Taxes, Depreciation and Amortization, EBITDA, decreased by 3%, from Ps. 225.2 billion in the second quarter of 2006, to Ps. 217.9 billion (US$20.2 billion). |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
EBITDA reconciliation
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | 2007 | |||||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | (US$mm) | |||||||||||||||||||||||||||||||||||||
Net income (loss) | 12,081 | 37,071 | 207 | % | 24,990 | 3,434 | 20,127 | 26,968 | 34 | % | 6,841 | 2,498 | ||||||||||||||||||||||||||||
+ Taxes and duties | 151,030 | 139,483 | -8 | % | (11,546 | ) | 12,922 | 298,914 | 272,935 | -9 | % | (25,979 | ) | 25,284 | ||||||||||||||||||||||||||
+ Comprehensive financing cost | 23,274 | 4,553 | -80 | % | (18,721 | ) | 422 | 27,049 | 14,737 | -46 | % | (12,312 | ) | 1,365 | ||||||||||||||||||||||||||
+ Depreciation and amortization | 20,889 | 16,730 | -20 | % | (4,159 | ) | 1,550 | 30,800 | 31,916 | 4 | % | 1,116 | 2,957 | |||||||||||||||||||||||||||
+ Cost of the reserve for retirement payments | 17,939 | 20,098 | 12 | % | 2,159 | 1,862 | 35,918 | 40,195 | 12 | % | 4,277 | 3,724 | ||||||||||||||||||||||||||||
EBITDA | 225,213 | 217,935 | -3 | % | (7,277 | ) | 20,189 | 412,808 | 386,751 | -6 | % | (26,057 | ) | 35,828 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
Note: Numbers may not total due to rounding. |
As of June 30, 2007, our assets totaled Ps. 1,248.1 billion (US$115.6 billion), representing an 8% increase, or Ps. 90.4 billion, as compared to total assets as of June 30, 2006. The variation in the components of total assets were as follows: | ||
• cash and cash equivalents increased by 70%, or Ps. 71.0 billion, | ||
• properties and equipment increased by 7%, or Ps. 46.5 billion, | ||
• accounts receivable decreased by 14%, or Ps. 25.2 billion, | ||
• other assets decreased by 6%, or Ps. 6.9 billion, | ||
• the value of inventories increased by 5%, or Ps. 3.1 billion, and | ||
• the value of financial derivative instruments increased by 39%, or Ps. 1.8 billion. |
Total amount | During the second quarter of 2007 total liabilities increased by 1% as compared to the second quarter of 2006, to Ps. 1,175.8 billion (US$108.9 billion). | |
• short-term liabilities increased by 23%, or Ps. 33.9 billion to Ps. 182.5 billion (US$16.9 billion), primarily as a result of an increase in taxes and in the current portion of long- term debt, which was previously contracted; and | ||
• long-term liabilities decreased by 3%, or Ps. 26.4 billion to Ps. 993.3 billion (US$92.0 billion), primarily due to a reduction in long-term debt. | ||
Reserve for Retirement Payments | The reserve for retirement payments increased by 16%, from Ps. 417.7 billion to Ps. 483.4 billion (US$44.8 billion). |
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PEMEX | Corporate Finance Office — Investor Relations |
Equity increased by Ps. 82.9 billion, from Ps. (10.6) billion at June 30, 2006 to Ps. 72.3 billion (or US$6.7 billion), at June 30, 2007. The increase in equity was due to: | ||
• a decrease of Ps. 53.0 billion in cumulative net losses, due to net income generated in the second half of 2006 and 2007, | ||
• a payment from the government to PEMEX in the amount of Ps. 46.6 billion, paid in accordance with the Federal Expenditure Budget for the 2006 fiscal year, | ||
• a decrease of Ps. 18.3 billion due to the negative effect of the increase in reserve for retirement payments, | ||
• an increase of Ps. 0.9 billion due in the restatement of equity. This item is linked to the restatement of fixed assets, and | ||
• an increase of Ps. 0.7 billion in comprehensive income due to the application of Bulletin C-10 “Derivative Financial Instruments and Hedging Operations”. |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Equity
As of June 30, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total equity | (10,610 | ) | 72,299 | 82,909 | 6,698 | |||||||||||||||
Certificates of contribution “A” | 93,927 | 93,926 | (0.2 | ) | 8,701 | |||||||||||||||
Mexican Government increase in equity of Susbsidiary Entities | 82,558 | 129,177 | 56 | % | 46,619 | 11,967 | ||||||||||||||
Effect of the reserve for retirement payments | (28,534 | ) | (46,816 | ) | 64 | % | (18,282 | ) | (4,337 | ) | ||||||||||
Comprehensive income | (2,299 | ) | (1,607 | ) | -30 | % | 692 | (149 | ) | |||||||||||
Restatement of equity | 159,052 | 159,918 | 1 | % | 866 | 14,815 | ||||||||||||||
Accumulated net income (losses) | (315,313 | ) | (262,299 | ) | -17 | % | 53,014 | (24,299 | ) | |||||||||||
From prior years | (335,440 | ) | (289,267 | ) | -14 | % | 46,173 | (26,797 | ) | |||||||||||
Net income (loss) for the period | 20,127 | 26,968 | 6,841 | 2,498 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
Note: Numbers may not total due to rounding. |
Funds Provided by Operating Activities | Funds provided by operating activities totaled Ps. 64.5 billion (US$6.0 billion) in the second quarter of 2007, as compared to Ps. (47.3)billion in the second quarter of 2006. The Ps. 111.8 billion increase was primarily due to an increase in accounts payable to suppliers. | |
Funds Provided by Financing Activities | Funds provided by financing activities totaled Ps. (23.4) billion (US$ 2.2 billion), as compared to Ps. 70.7 billion in the second quarter of 2006 . The Ps. 94.2 billion decrease was primarily due to a reduction in bank loans and securities. | |
�� | ||
Funds Used in Investing Activities | Funds used in investing activities totaled Ps. 58.1 billion (US$5.4 billion), as compared to Ps. (58.2) billion in the second quarter of 2006, primarily due to acquisition of property, plants and equipment. |
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PEMEX | Corporate Finance Office — Investor Relations |
2007 | Estimated investments for 2007 total Ps. 172.4 billion (US$15.4 billion), out of which PIDIREGAS investments represent Ps. 154.8 billion (US$13.8 billion)11. | |
The allocation of total investments by subsidiary entity is as follows: | ||
• Ps. 137.2 billion for Exploration and Production12, | ||
• Ps. 15.3 billion for Refining, | ||
• Ps. 1.3 billion for Gas and Basic Petrochemicals, and | ||
• Ps. 1.0 billion for Petrochemicals. |
Financing Program 2007 | This program will be financed by fundraising US$1.0 to US$2.0 billion through Export Credit Agencies (ECA’s) in foreign financial markets. These amounts are subject to investments and resources approved by Congress in the 2007 Federal Budget. | |
Master Trust | During the first half of 2007, the Pemex Project Funding Master Trust, a trust registered in Delaware, USA, attracted US$782 million through Export Credit Agencies. | |
During the second quarter of 2007, the Pemex Project Funding Master Trust repurchased in the open market certain of its U.S. dollar-denominated debt securities with maturities between 2008 and 2027, as well as a certain amount of its U.S. dollar-denominated perpetual notes. The total aggregate amount repurchased in this program was equal to US$1.1 billion. The purchased notes were cancelled. |
10 | Budgeted exchange rate of Ps. 11.20 per dollar | |
11 | Includes upstream maintenance expenditures. | |
12 | Idem |
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PEMEX | Corporate Finance Office — Investor Relations |
Total Amount | Total consolidated debt,13 including accrued interest, totaled Ps. 548.8 billion (US$50.8 billion) at June 30, 2007. This figure represents a decrease of 14%, or Ps. 87.0 billion, as compared to the total at June 30, 2006, primarily due to a decrease in long-term debt. | |
• Short-term debt totaled Ps. 71.9 billion (US$6.7 billion), and | ||
• long-term debt totaled Ps. 476.9 billion (US$44.2 billion). | ||
Net Debt | Net debt or the difference between total debt and cash equivalents, decreased by Ps. 158.0 billion, from Ps. 534.1 billion at June 30, 2006 to Ps. 376.2 billion (US$36.2 billion) at June 30, 2007. |
13 | Total consolidated debt is comprised by documented debt of Petróleos Mexicanos, the Pemex Project Funding Master Trust, the Fideicomiso F/163, RepCon Lux, S.A. and PEMEX Finance, Ltd. |
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PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Consolidated total debt
�� | ||||||||||||||||||||
As of June 30, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Total debt | 635,740 | 548,788 | -14 | % | (86,951 | ) | 50,839 | |||||||||||||
Short-term | 65,553 | 71,926 | 10 | % | 6,372 | 6,663 | ||||||||||||||
Long-term | 570,186 | 476,863 | -16 | % | (93,324 | ) | 44,176 | |||||||||||||
Cash & cash equivalents | 101,621 | 172,624 | 70 | % | 71,004 | 15,992 | ||||||||||||||
Total net debt | 534,119 | 376,164 | -30 | % | (157,955 | ) | 34,847 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) - -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
Note: Numbers may not total due to rounding. |
Maturity Profile | The following table shows the maturity profile of PEMEX’s total debt: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Maturity profile
As of June 30, | ||||||||||
(Ps. mm) | US$mm | |||||||||
Documented debt in pesos | 110,563 | 10,242 | ||||||||
2007 | 13,167 | 1,220 | ||||||||
Jan 2008 — Jun 2008 | 444 | 41 | ||||||||
Jul 2008 — Jun 2009 | 4,389 | 407 | ||||||||
Jul 2009 — Jun 2010 | 26,013 | 2,410 | ||||||||
Jul 2010 — Jun 2011 | 9,972 | 924 | ||||||||
June 2011 and beyond | 56,577 | 5,241 | ||||||||
Documented debt in other currencies | 438,225 | 40,597 | ||||||||
2007 | 36,925 | 3,421 | ||||||||
Jan 2008 — Jun 2008 | 21,389 | 1,981 | ||||||||
Jul 2008 — Jun 2009 | 48,551 | 4,498 | ||||||||
Jul 2009 — Jun 2010 | 68,633 | 6,358 | ||||||||
Jul 2010 — Jun 2011 | 54,295 | 5,030 | ||||||||
June 2011 and beyond | 208,432 | 19,309 | ||||||||
Total debt | 548,788 | 50,839 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
Note: Numbers may not total due to rounding. |
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PEMEX | Corporate Finance Office — Investor Relations |
Duration | The following table presents average duration of debt: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Average duration of debt exposure
As of June 30, | ||||||||||||
2006 | 2007 | Change | ||||||||||
(Years) | ||||||||||||
U.S. Dollars | 3.9 | 3.8 | (0.07 | ) | ||||||||
Mexican pesos | 1.9 | 2.0 | 0.1 | |||||||||
Euros | 2.3 | 3.4 | 1.0 | |||||||||
Japanese yen | 2.1 | 1.6 | (0.5 | ) | ||||||||
Total | 3.5 | 3.4 | (0.1 | ) |
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 June 30, 2007, approximately 61% of PEMEX’s debt exposure carried fixed interest rates, and the remaining 39% carried floating rates. | |
Currency and Interest Rate Sensitivity | The following table sets forth PEMEX’s debt exposure to currency and interest rate risk: |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Debt exposure
(excluding accrued interest)
As of June 30, | ||||||||||||||||||||||||
2006 | 2007 | 2006 | 2007 | 2006 | 2007 | |||||||||||||||||||
Percentage | ||||||||||||||||||||||||
By currency | At fixed rate | At floating rate | ||||||||||||||||||||||
U.S. Dollars | 80.2 | % | 78.9 | % | 62.5 | % | 64.2 | % | 37.5 | % | 35.8 | % | ||||||||||||
Mexican pesos | 19.7 | % | 21.0 | % | 45.2 | % | 47.3 | % | 54.8 | % | 52.7 | % | ||||||||||||
Euros | 0.002 | % | 0.001 | % | 62.7 | % | 100.0 | % | 37.3 | % | 0.0 | % | ||||||||||||
Japanese yen | 0.12 | % | 0.08 | % | 100.0 | % | 100.0 | % | 0.0 | % | 0.0 | % | ||||||||||||
Total | 100.0 | % | 100.0 | % | 59.2 | % | 60.7 | % | 40.8 | % | 39.3 | % |
Note: Numbers may not total due to rounding. |
24/33
PEMEX | Corporate Finance Office — Investor Relations |
Union Contract Revision | Our relationship with our workers is regulated by the Federal Labor Law and a collective labor contract between PEMEX and the Mexican Republic Petroleum Workers Union. The labor contract is reviewed every two years, although wages are reviewed every year. On July 17, 2007, PEMEX and the Petroleum Workers Union signed the collective work contract for the period from August 1, 2007 to July 31, 2009. The new agreement includes a 4.25% salary increase and a 1.6% increase in benefits. These increases, which are similar to other contract increases in the industrial sector, will go into effect on August 1st, 2007. | |
Collaboration Agreement with British Petroleum | On July 24, 2007, Pemex-Exploration and Production and British Petroleum (BP) entered into three collaboration agreements. One has a broad technical-scientific contract, and the other two were specifically for the study of marine technology in deep waters and of air injection in oilfields. The agreements have a term of five years. The agreement for marine technology collaboration will focus on topics related to deep water geology, exploration and the realization of objectives during drilling. A key element in this collaboration will be knowledge transfer from BP. This will allow PEMEX to develop best practices for deep water exploration. The air injection study will analyze the potential of the air injection process replacing nitrogen, carbon dioxide (CO 2 ) or natural gas in fractured oilfields in Mexico for improved hydrocarbon recovery. | |
Carbon Bonds | In June 2007, PEMEX and Ecosecurities signed letters of intent for the transfer of carbon dioxide emission-reduction certificates. Under this agreement, PEMEX will implement three projects to reduce greenhouse gas emissions by increasing thermal efficiency of the boilers and through a change in the vapor traps in the Salina Cruz and Salamanca refineries. This will allow greenhouse gas emissions to be reduced by more than 140 thousand tons annually. | |
Bicentenary Ecological Park | On May 24, 2007, President Felipe Calderon announced the Bicentenary Ecological Park project. It will be located at the site of the former 18 de Marzo refinery in Mexico City, donated to the country by PEMEX eleven years ago. The park will include an aquarium, a Renewable Energy Museum, green areas, lakes, open air auditoriums, restaurants, service areas, cycling paths, walking paths, children’s attractions, sports facilities, nurseries and spaces dedicated to environmental education and culture. |
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PEMEX | Corporate Finance Office — Investor Relations |
Appointments | In May 2007, following appointments were approved by the Boards of Directors of Pemex-Refining and Pemex-Gas and Basic Petrochemicals, respectively: | |
Pemex-Refining: | ||
• Moisés Orozco García, Comercial Deputy Director; | ||
• Mario Nieto Garza, Deputy Director in charge of distribution; and | ||
• Isaías Navarro, Deputy Director in charge of Handling and Delivery. Pemex-Petrochemicals: | ||
• Carlos Pani Espinosa, Executive Director of Petrochemical Projects. | ||
Tapping Detection in the Pipeline System | During the first half of 2007, security agents of PEMEX detected 148 pipeline taps in different zones of the country, on the company’s distribution system. | |
• 136 were located in the Pemex-Refining pipeline system, | ||
• 9 were in the Pemex-Exploration and Production system, and | ||
• 3 in the system of Pemex-Gas and Basic Petrochemicals. The rise in number of detections is due to activities that PEMEX, along with other authorities, is implementing to fight the illegal clandestine market. | ||
Incidents | The following incidents took place during the months through July 2007: | |
• On June 23, there was a fire in two tanks at the Cadereyta Refinery. No injuries or ecological damage was reported. | ||
• On July 5, 2007, strong rain fall affected the Añil-Cuernavaca product pipeline in the Iztapalapa delegation. The pipeline was repaired. Nonetheless, gasoline supply was suspended temporarily to protect the zone’s population. | ||
• On July 5, 2007, three incidents occurred in the gas pipeline from Valtierrilla, Guanajuato to Guadalajara, Jalisco, which motivated the suspension of gas supply: | ||
– One explosion took place in the sectioning valve located in the Salamanca-Valle Santiago road; | ||
– Another explosion took place in the valve room of the same gas line in Celaya, Guanajuato; and | ||
– A gas line leak occurred in the community of Puerto. | ||
No injuries were reported. Natural gas supply returned to normal levels on July 9. | ||
• On July 10, 2007, there was an explosion in the valve room of Queretaro. This affected the following pipelines: | ||
– Mexico-Guadalajara natural gas pipeline; | ||
– Cactus-Guadalajara LPG pipepline; and | ||
– Poza Rica Salamanca pipeline. | ||
The fire resulting from the explosion was brought under control and natural gas supply was returned to normal levels on July 15. |
26/33
PEMEX | Corporate Finance Office — Investor Relations |
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||||||||
(Mbd) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 3,012 | 3,127 | 3,177 | 3,371 | 3,383 | 3,316 | 3,425 | 3,286 | 3,306 | 3,345 | 3,329 | 3,247 | 3,104 | 3,158 | 3,166 | |||||||||||||||||||||||||||||||||||||||||||||
Northeast Marine Region | 1,763 | 1,986 | 2,152 | 2,416 | 2,441 | 2,375 | 2,450 | 2,305 | 2,300 | 2,334 | 2,289 | 2,174 | 2,026 | 2,074 | 2,111 | |||||||||||||||||||||||||||||||||||||||||||||
Akal and Nohoch | 1,420 | 1,673 | 1,851 | 2,054 | 2,079 | 2,067 | 2,041 | 1,905 | 1,883 | 1,882 | 1,797 | 1,698 | 1,564 | 1,529 | 1,533 | |||||||||||||||||||||||||||||||||||||||||||||
Ku | 205 | 176 | 185 | 197 | 191 | 159 | 213 | 213 | 225 | 244 | 278 | 282 | 272 | 310 | 330 | |||||||||||||||||||||||||||||||||||||||||||||
Zaap | 30 | 26 | 21 | 41 | 57 | 53 | 77 | 75 | 71 | 82 | 76 | 66 | 62 | 89 | 91 | |||||||||||||||||||||||||||||||||||||||||||||
Maloob | 50 | 45 | 35 | 50 | 53 | 38 | 51 | 48 | 50 | 57 | 64 | 50 | 45 | 55 | 64 | |||||||||||||||||||||||||||||||||||||||||||||
Chac | 18 | 22 | 17 | 20 | 17 | 10 | 13 | 12 | 12 | 13 | 13 | 12 | 11 | 11 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
Kutz | – | 5 | 9 | 13 | 12 | 10 | 14 | 11 | 11 | 12 | 12 | 12 | 12 | 12 | 12 | |||||||||||||||||||||||||||||||||||||||||||||
Others | 40 | 40 | 32 | 41 | 32 | 37 | 40 | 39 | 48 | 44 | 50 | 56 | 59 | 69 | 70 | |||||||||||||||||||||||||||||||||||||||||||||
Southwest Marine Region | 622 | 554 | 452 | 398 | 388 | 381 | 394 | 390 | 419 | 428 | 454 | 498 | 519 | 522 | 493 | |||||||||||||||||||||||||||||||||||||||||||||
Caan | 182 | 163 | 133 | 114 | 108 | 102 | 100 | 95 | 94 | 93 | 90 | 86 | 84 | 75 | 69 | |||||||||||||||||||||||||||||||||||||||||||||
Chuc | 140 | 118 | 107 | 99 | 93 | 98 | 103 | 99 | 112 | 111 | 106 | 110 | 99 | 96 | 94 | |||||||||||||||||||||||||||||||||||||||||||||
Abkatún | 108 | 103 | 80 | 69 | 54 | 49 | 47 | 41 | 38 | 34 | 31 | 29 | 27 | 27 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
Taratunich | 50 | 43 | 39 | 36 | 33 | 27 | 24 | 17 | 19 | 24 | 33 | 39 | 40 | 39 | 35 | |||||||||||||||||||||||||||||||||||||||||||||
Pol | 74 | 62 | 42 | 35 | 25 | 19 | 18 | 16 | 14 | 14 | 13 | 13 | 15 | 18 | 17 | |||||||||||||||||||||||||||||||||||||||||||||
Others | 69 | 64 | 51 | 44 | 75 | 86 | 102 | 122 | 142 | 152 | 181 | 220 | 255 | 268 | 255 | |||||||||||||||||||||||||||||||||||||||||||||
South Region | 550 | 509 | 498 | 483 | 473 | 479 | 495 | 508 | 504 | 499 | 501 | 491 | 474 | 475 | 472 | |||||||||||||||||||||||||||||||||||||||||||||
Puerto Ceiba | 17 | 21 | 38 | 46 | 77 | 77 | 81 | 81 | 70 | 63 | 59 | 52 | 45 | 42 | 41 | |||||||||||||||||||||||||||||||||||||||||||||
Samaria | 83 | 83 | 71 | 73 | 62 | 60 | 64 | 68 | 69 | 66 | 64 | 64 | 61 | 67 | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Iride | 45 | 43 | 43 | 44 | 46 | 48 | 50 | 51 | 52 | 51 | 50 | 46 | 46 | 46 | 42 | |||||||||||||||||||||||||||||||||||||||||||||
Jujo | 61 | 56 | 56 | 51 | 44 | 45 | 52 | 51 | 51 | 54 | 58 | 59 | 55 | 53 | 52 | |||||||||||||||||||||||||||||||||||||||||||||
Cunduacán | 24 | 22 | 21 | 23 | 26 | 28 | 30 | 27 | 25 | 23 | 23 | 21 | 18 | 16 | 15 | |||||||||||||||||||||||||||||||||||||||||||||
Tecominoacán | 32 | 29 | 27 | 23 | 20 | 20 | 22 | 23 | 25 | 28 | 31 | 30 | 26 | 25 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
Cárdenas | 23 | 20 | 16 | 14 | 13 | 11 | 14 | 18 | 18 | 19 | 21 | 18 | 15 | 15 | 14 | |||||||||||||||||||||||||||||||||||||||||||||
Sen | 30 | 33 | 31 | 21 | 13 | 17 | 18 | 19 | 21 | 22 | 22 | 21 | 21 | 21 | 27 | |||||||||||||||||||||||||||||||||||||||||||||
Pijije | 4 | 5 | 9 | 12 | 11 | 10 | 12 | 14 | 14 | 14 | 15 | 15 | 14 | 14 | 14 | |||||||||||||||||||||||||||||||||||||||||||||
Jolote | 20 | 16 | 15 | 12 | 11 | 9 | 10 | 10 | 9 | 9 | 9 | 9 | 8 | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Cactus | 11 | 12 | 10 | 12 | 11 | 11 | 9 | 9 | 8 | 8 | 9 | 9 | 8 | 9 | 9 | |||||||||||||||||||||||||||||||||||||||||||||
Bellota | 10 | 9 | 10 | 8 | 9 | 10 | 9 | 9 | 8 | 8 | 8 | 8 | 7 | 7 | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Chinchorro | 10 | 10 | 9 | 10 | 9 | 8 | 8 | 8 | 7 | 7 | 7 | 7 | 8 | 8 | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Yagual | 4 | 4 | 4 | 4 | 6 | 11 | 11 | 13 | 12 | 11 | 10 | 11 | 11 | 11 | 13 | |||||||||||||||||||||||||||||||||||||||||||||
Rodador | 2 | 2 | 3 | 7 | 6 | 5 | 5 | 5 | 6 | 4 | 4 | 5 | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Others | 174 | 144 | 136 | 122 | 108 | 108 | 101 | 104 | 110 | 111 | 112 | 117 | 123 | 129 | 133 | |||||||||||||||||||||||||||||||||||||||||||||
North Region | 77 | 79 | 75 | 74 | 81 | 81 | 86 | 84 | 83 | 84 | 85 | 84 | 85 | 87 | 89 | |||||||||||||||||||||||||||||||||||||||||||||
Poza Rica | 10 | 11 | 10 | 10 | 11 | 10 | 10 | 10 | 9 | 10 | 10 | 10 | 10 | 10 | 10 | |||||||||||||||||||||||||||||||||||||||||||||
Arenque | 6 | 8 | 8 | 9 | 8 | 10 | 10 | 9 | 9 | 8 | 9 | 8 | 8 | 8 | 8 | |||||||||||||||||||||||||||||||||||||||||||||
Agua Fría | 3 | 2 | 2 | 2 | 7 | 6 | 6 | 5 | 6 | 7 | 8 | 8 | 6 | 5 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Tajín | 2 | 1 | 1 | 3 | 6 | 6 | 6 | 6 | 6 | 6 | 5 | 5 | 5 | 7 | 8 | |||||||||||||||||||||||||||||||||||||||||||||
Tamaulipas | 8 | 8 | 7 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 4 | |||||||||||||||||||||||||||||||||||||||||||||
Constituciones | 7 | 7 | 6 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Others | 42 | 41 | 40 | 39 | 39 | 39 | 43 | 43 | 43 | 43 | 43 | 44 | 47 | 48 | 50 |
Note: Numbers may not total due to rounding. |
27/33
PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary Companies
Natural gas production by selected fields (quarterly)
2005 | 2006 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2000 | 2001 | 2002 | 2003 | 2004 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||||||||||||||||||||||||||||||||||||||||||||||
(MMcfd) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 4,679 | 4,511 | 4,423 | 4,498 | 4,573 | 4,640 | 4,861 | 4,839 | 4,928 | 5,094 | 5,281 | 5,478 | 5,565 | 5,816 | 6,033 | |||||||||||||||||||||||||||||||||||||||||||||||||
Northeast Marine Region | 737 | 794 | 831 | 940 | 947 | 918 | 965 | 914 | 915 | 931 | 958 | 923 | 870 | 992 | 1,129 | |||||||||||||||||||||||||||||||||||||||||||||||||
Akal and Nohoch | 543 | 610 | 676 | 750 | 759 | 755 | 745 | 695 | 687 | 687 | 698 | 675 | 634 | 740 | 888 | |||||||||||||||||||||||||||||||||||||||||||||||||
Ku | 133 | 123 | 98 | 111 | 101 | 82 | 106 | 109 | 115 | 127 | 152 | 150 | 137 | 146 | 138 | |||||||||||||||||||||||||||||||||||||||||||||||||
Others | 60 | 61 | 57 | 80 | 88 | 81 | 113 | 110 | 113 | 117 | 108 | 99 | 99 | 106 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||
Southwest Marine Region | 820 | 736 | 621 | 581 | 603 | 601 | 654 | 656 | 707 | 750 | 810 | 908 | 953 | 985 | 940 | |||||||||||||||||||||||||||||||||||||||||||||||||
Caan | 278 | 258 | 215 | 206 | 215 | 207 | 216 | 205 | 198 | 196 | 189 | 181 | 176 | 171 | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||
Chuc | 177 | 148 | 131 | 119 | 95 | 97 | 108 | 117 | 130 | 118 | 113 | 121 | 109 | 107 | 107 | |||||||||||||||||||||||||||||||||||||||||||||||||
Taratunich | 75 | 67 | 65 | 67 | 66 | 54 | 49 | 32 | 37 | 57 | 73 | 87 | 81 | 79 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sinan | — | — | — | 1 | 48 | 63 | 80 | 89 | 88 | 94 | 104 | 156 | 136 | 140 | 152 | |||||||||||||||||||||||||||||||||||||||||||||||||
Abkatún | 82 | 78 | 62 | 56 | 47 | 43 | 42 | 33 | 27 | 33 | 31 | 29 | 29 | 29 | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||
Uech | 51 | 45 | 43 | 40 | 37 | �� | 28 | 25 | 22 | 25 | 26 | 28 | 30 | 25 | 23 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||
Others | 157 | 139 | 104 | 92 | 94 | 109 | 134 | 160 | 203 | 226 | 272 | 304 | 398 | 435 | 395 | |||||||||||||||||||||||||||||||||||||||||||||||||
South Region | 1,857 | 1,743 | 1,704 | 1,630 | 1,495 | 1,419 | 1,408 | 1,398 | 1,377 | 1,361 | 1,318 | 1,355 | 1,375 | 1,365 | 1,392 | |||||||||||||||||||||||||||||||||||||||||||||||||
Muspac | 216 | 212 | 235 | 215 | 145 | 124 | 116 | 117 | 104 | 92 | 86 | 81 | 78 | 76 | 74 | |||||||||||||||||||||||||||||||||||||||||||||||||
Samaria | 113 | 114 | 94 | 99 | 102 | 94 | 89 | 89 | 79 | 78 | 76 | 81 | 76 | 107 | 101 | |||||||||||||||||||||||||||||||||||||||||||||||||
Catedral | 134 | 123 | 124 | 128 | 100 | 82 | 75 | 71 | 68 | 66 | 54 | 53 | 49 | 44 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||
Giraldas | 96 | 102 | 103 | 96 | 89 | 83 | 78 | 69 | 67 | 64 | 61 | 63 | 63 | 60 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||
Copano | 79 | 86 | 80 | 82 | 78 | 70 | 68 | 64 | 59 | 60 | 55 | 53 | 51 | 50 | 49 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cunduacán | 64 | 57 | 51 | 55 | 71 | 77 | 90 | 90 | 94 | 99 | 101 | 97 | 92 | 85 | 80 | |||||||||||||||||||||||||||||||||||||||||||||||||
Iride | 68 | 76 | 74 | 77 | 70 | 83 | 92 | 96 | 102 | 109 | 109 | 101 | 106 | 108 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||
Puerto Ceiba | 11 | 18 | 24 | 29 | 53 | 52 | 54 | 53 | 47 | 43 | 39 | 35 | 32 | 29 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
Jujo | 82 | 81 | 71 | 58 | 45 | 46 | 53 | 59 | 59 | 64 | 54 | 54 | 57 | 58 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||
José Colomo | 63 | 60 | 47 | 37 | 36 | 35 | 35 | 36 | 35 | 32 | 31 | 28 | 29 | 29 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
Sen | 86 | 92 | 91 | 64 | 33 | 41 | 45 | 47 | 53 | 56 | 57 | 55 | 55 | 54 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pijije | 12 | 14 | 26 | 35 | 32 | 29 | 34 | 41 | 42 | 42 | 42 | 43 | 42 | 42 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||
Luna | 110 | 89 | 85 | 51 | 32 | 30 | 21 | 25 | 21 | 21 | 20 | 17 | 18 | 18 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Tecominoacán | 40 | 37 | 30 | 25 | 31 | 31 | 36 | 33 | 35 | 40 | 41 | 41 | 37 | 28 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
Saramako | — | — | 2 | 14 | 28 | 29 | 28 | 25 | 22 | 20 | 19 | 16 | 14 | 11 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cárdenas | 47 | 35 | 31 | 28 | 27 | 26 | 29 | 40 | 38 | 41 | 41 | 38 | 33 | 31 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cactus | 21 | 22 | 19 | 25 | 26 | 25 | 23 | 22 | 22 | 20 | 23 | 24 | 19 | 20 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||
Bellota | 26 | 25 | 28 | 27 | 25 | 26 | 26 | 23 | 24 | 23 | 21 | 21 | 19 | 14 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||
Others | 590 | 501 | 489 | 486 | 472 | 438 | 415 | 401 | 405 | 393 | 388 | 450 | 505 | 502 | 523 | |||||||||||||||||||||||||||||||||||||||||||||||||
North Region | 1,266 | 1,238 | 1,268 | 1,347 | 1,528 | 1,703 | 1,834 | 1,871 | 1,930 | 2,052 | 2,196 | 2,292 | 2,366 | 2,475 | 2,572 | |||||||||||||||||||||||||||||||||||||||||||||||||
Culebra | 320 | 274 | 219 | 201 | 169 | 182 | 185 | 167 | 153 | 157 | 161 | 171 | 183 | 154 | 160 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cuitláhuac | 122 | 126 | 109 | 91 | 113 | 116 | 115 | 116 | 117 | 121 | 120 | 116 | 112 | 100 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||
Arcos | 199 | 175 | 148 | 141 | 104 | 76 | 81 | 101 | 109 | 104 | 101 | 100 | 78 | 69 | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cocuite | 18 | 27 | 45 | 90 | 101 | 84 | 77 | 71 | 65 | 57 | 52 | 55 | 52 | 42 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||
Vistoso | — | — | — | 8 | 80 | 111 | 118 | 119 | 120 | 120 | 116 | 118 | 113 | 100 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||||
Santa Rosalia | 9 | 24 | 63 | 53 | 63 | 56 | 56 | 58 | 71 | 55 | 48 | 46 | 44 | 48 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||
Corindón | 26 | 40 | 59 | 59 | 50 | 45 | 41 | 36 | 49 | 48 | 49 | 46 | 46 | 43 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||
Arcabuz | 93 | 57 | 46 | 33 | 40 | 54 | 67 | 76 | 65 | 71 | 77 | 81 | 79 | 97 | 88 | |||||||||||||||||||||||||||||||||||||||||||||||||
Torrecillas | 1 | 5 | 21 | 34 | 39 | 36 | 41 | 41 | 43 | 43 | 35 | 38 | 35 | 34 | 34 | |||||||||||||||||||||||||||||||||||||||||||||||||
Velero | 2 | 9 | 13 | 22 | 38 | 50 | 50 | 49 | 51 | 54 | 65 | 73 | 91 | 105 | 112 | |||||||||||||||||||||||||||||||||||||||||||||||||
Arenque | 27 | 28 | 29 | 30 | 32 | 31 | 32 | 33 | 31 | 32 | 34 | 34 | 34 | 33 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||
Copite | 47 | 35 | 33 | 27 | 29 | 28 | 27 | 22 | 26 | 27 | 25 | 25 | 25 | 23 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||
Others | 402 | 439 | 482 | 557 | 669 | 833 | 945 | 982 | 1,030 | 1,163 | 1,311 | 1,390 | 1,472 | 1,625 | 1,736 |
Note: Numbers may not total due to rounding. |
PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Consolidated balance sheet
As of June 30, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Current assets | 347,459 | 398,174 | 15 | % | 50,715 | 36,886 | ||||||||||||||
Cash & cash equivalents | 101,621 | 172,624 | 70 | % | 71,004 | 15,992 | ||||||||||||||
Accounts receivable | 177,093 | 151,911 | -14 | % | (25,182 | ) | 14,073 | |||||||||||||
Inventories | 64,122 | 67,201 | 5 | % | 3,079 | 6,225 | ||||||||||||||
Financial derivative instruments | 4,624 | 6,438 | 39 | % | 1,813 | 596 | ||||||||||||||
Properties and equipment | 690,167 | 736,712 | 7 | % | 46,545 | 68,248 | ||||||||||||||
Other assets | 120,070 | 113,204 | -6 | % | (6,867 | ) | 10,487 | |||||||||||||
Total assets | 1,157,696 | 1,248,090 | 8 | % | 90,394 | 115,622 | ||||||||||||||
Short-term liabilities | 148,590 | 182,455 | 23 | % | 33,865 | 16,902 | ||||||||||||||
Short-term debt(1) | 65,553 | 71,926 | 10 | % | 6,372 | 6,663 | ||||||||||||||
Suppliers | 29,090 | 27,459 | -6 | % | (1,632 | ) | 2,544 | |||||||||||||
Accounts payable and accrued expenses | 25,202 | 14,939 | -41 | % | (10,263 | ) | 1,384 | |||||||||||||
Taxes payable | 18,021 | 51,072 | 183 | % | 33,051 | 4,731 | ||||||||||||||
Financial derivative instruments | 10,724 | 17,060 | 59 | % | 6,336 | 1,580 | ||||||||||||||
Long-term liabilities | 1,019,716 | 993,336 | -3 | % | (26,380 | ) | 92,022 | |||||||||||||
Long-term debt(2) | 570,186 | 476,863 | -16 | % | (93,324 | ) | 44,176 | |||||||||||||
Reserve for retirement payments, pensions and seniority premiums | 417,679 | 483,448 | 16 | % | 65,769 | 44,786 | ||||||||||||||
Other non-current liabilities(3) | 31,850 | 28,713 | -10 | % | (3,137 | ) | 2,660 | |||||||||||||
Deferred taxes | — | 4,312 | 4,312 | 399 | ||||||||||||||||
Total liabilities | 1,168,306 | 1,175,791 | 1 | % | 7,485 | 108,924 | ||||||||||||||
Total equity | (10,610 | ) | 72,299 | 82,909 | 6,698 | |||||||||||||||
Total liabilities & equity | 1,157,696 | 1,248,090 | 8 | % | 90,394 | 115,622 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
(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. |
29/33
PEMEX | Corporate Finance Office — Investor Relations |
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Consolidated income statement
Second quarter (Apr. - Jun.) | Six months ending Jun. 30, | |||||||||||||||||||||||||||||||||||
2006 | 2007 | Change | 2007 | 2006 | 2007 | Change | ||||||||||||||||||||||||||||||
(Ps. mm) | (US$mm) | (Ps. mm) | ||||||||||||||||||||||||||||||||||
Total sales | 292,616 | 277,578 | -5 | % | (15,039 | ) | 25,714 | 543,192 | 512,526 | -6 | % | (30,665 | ) | |||||||||||||||||||||||
Domestic sales | 141,564 | 147,181 | 4 | % | 5,617 | 13,635 | 272,909 | 278,846 | 2 | % | 5,937 | |||||||||||||||||||||||||
Exports | 151,053 | 130,397 | -14 | % | (20,656 | ) | 12,080 | 270,283 | 233,680 | -14 | % | (36,603 | ) | |||||||||||||||||||||||
Costs and expenses(1) | 128,523 | 129,278 | 1 | % | 755 | 11,976 | 226,041 | 235,087 | 4 | % | 9,046 | |||||||||||||||||||||||||
Cost of sales | 111,473 | 109,614 | -2 | % | (1,859 | ) | 10,155 | 190,505 | 197,333 | 4 | % | 6,829 | ||||||||||||||||||||||||
Distribution expenses | 5,576 | 6,105 | 9 | % | 529 | 566 | 11,280 | 11,976 | 6 | % | 696 | |||||||||||||||||||||||||
Administrative expenses | 11,475 | 13,559 | 18 | % | 2,084 | 1,256 | 24,256 | 25,777 | 6 | % | 1,522 | |||||||||||||||||||||||||
Operating income | 164,093 | 148,299 | -10 | % | (15,794 | ) | 13,738 | 317,151 | 277,440 | -13 | % | (39,711 | ) | |||||||||||||||||||||||
Comprehensive financing cost | 23,274 | 4,553 | -80 | % | (18,721 | ) | 422 | 27,049 | 14,737 | -46 | % | (12,312 | ) | |||||||||||||||||||||||
Other expenses (revenues)(2) | (22,292 | ) | (32,808 | ) | -47 | % | (10,517 | ) | (3,039 | ) | (28,939 | ) | (37,200 | ) | -29 | % | (8,261 | ) | ||||||||||||||||||
Income before taxes and duties | 163,111 | 176,554 | 8 | % | 13,444 | 16,356 | 319,041 | 299,903 | -6 | % | (19,138 | ) | ||||||||||||||||||||||||
Taxes and duties | 151,030 | 139,483 | -8 | % | (11,546 | ) | 12,922 | 298,914 | 272,935 | -9 | % | (25,979 | ) | |||||||||||||||||||||||
Hydrocarbon duties and other | 151,030 | 139,483 | -8 | % | (11,546 | ) | 12,922 | 298,914 | 272,935 | -9 | % | (25,979 | ) | |||||||||||||||||||||||
Net income (loss) | 12,081 | 37,071 | 207 | % | 24,990 | 3,434 | 20,127 | 26,968 | 34 | % | 6,841 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- is Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are present Mexican pesos as of June 30, 2007. | |
(1) | Includes the cost of the reserve for retirment payments, pensions and indemnities. | |
(2) | Includes revenues from the Special Tax on Production and Services (IEPS) credit. | |
Note: Numbers may not total due to rounding. |
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PEMEX | Corporate Finance Office — Investor Relations |
Changes in financial position
Petróleos Mexicanos, Subsidiary Entities and Subsidiary
Companies Consolidated statements of changes in financial position
As of June 30, | ||||||||||||||||||||
2006 | 2007 | Change | 2007 | |||||||||||||||||
(Ps. mm) | (US$mm) | |||||||||||||||||||
Operating activities | ||||||||||||||||||||
Net income (loss) | 20,127 | 26,968 | 6,841 | 2,498 | ||||||||||||||||
Charges to operations not requiring the use of funds: | 66,718 | 72,111 | 8 | % | 5,393 | 6,680 | ||||||||||||||
Depreciation and amortization | 30,800 | 31,916 | 4 | % | 1,116 | 2,957 | ||||||||||||||
Other non-cash flow items | 35,918 | 40,195 | 12 | % | 4,277 | 3,724 | ||||||||||||||
Funds from net income (loss) | 86,845 | 99,079 | 14 | % | 12,234 | 9,179 | ||||||||||||||
Changes in working capital: | (134,126 | ) | (34,559 | ) | 99,567 | (3,201 | ) | |||||||||||||
Accounts, notes receivable and other | (53,803 | ) | (17,016 | ) | 36,787 | (1,576 | ) | |||||||||||||
Inventories | (11,218 | ) | (2,054 | ) | -82 | % | 9,164 | (190 | ) | |||||||||||
Intangible asset derived from actuarial computation of labor obligations and other assets | (8,618 | ) | 340 | -104 | % | 8,959 | 32 | |||||||||||||
Suppliers | (3,291 | ) | (8,484 | ) | 158 | % | (5,193 | ) | (786 | ) | ||||||||||
Other liabilities | (57,196 | ) | (7,344 | ) | 49,851 | (680 | ) | |||||||||||||
Funds provided by (used) in operating activities | (47,280 | ) | 64,521 | -236 | % | 111,801 | 5,977 | |||||||||||||
Financing activities | 73,378 | (23,458 | ) | -132 | % | (96,835 | ) | (2,173 | ) | |||||||||||
Bank loans | 38,543 | 8,673 | -77 | % | (29,870 | ) | 803 | |||||||||||||
Securities | 31,795 | — | -100 | % | (31,795 | ) | — | |||||||||||||
Other financing | 25,702 | — | (25,702 | ) | — | |||||||||||||||
Amortization of bank loans | (20,553 | ) | (10,785 | ) | -48 | % | 9,768 | (999 | ) | |||||||||||
Amortization of securities | (2,110 | ) | (15,128 | ) | 617 | % | (13,017 | ) | (1,401 | ) | ||||||||||
Amortization of other financing | — | — | — | — | ||||||||||||||||
Other items | — | (6,218 | ) | (6,218 | ) | (576 | ) | |||||||||||||
Own financing activities | (2,634 | ) | 48 | -102 | % | 2,682 | 4 | |||||||||||||
Equity movements | — | 48 | 48 | 4 | ||||||||||||||||
Minimum guaranteed dividends paid to the Mexican Government | (15,880 | ) | — | -100 | % | 15,880 | — | |||||||||||||
Other equity movements | 8,729 | — | -100 | % | (8,729 | ) | — | |||||||||||||
Other items | 4,517 | — | (4,517 | ) | — | |||||||||||||||
Funds provided by (used) in financing activities | 70,743 | (23,410 | ) | -133 | % | (94,153 | ) | (2,173 | ) | |||||||||||
Investing activities | ||||||||||||||||||||
Acquisition of property, plants and equipment | (48,214 | ) | (54,483 | ) | 13 | % | (6,269 | ) | (5,047 | ) | ||||||||||
Sale of other permanent investments | — | (3,659 | ) | (3,659 | ) | (339 | ) | |||||||||||||
Other items | — | — | — | — | ||||||||||||||||
Funds provided by (used) in investing activities | (48,214 | ) | (58,142 | ) | (9,928 | ) | (5,386 | ) | ||||||||||||
Net increase in cash and cash equivalents | (24,750 | ) | (17,031 | ) | -31 | % | 7,720 | (1,578 | ) | |||||||||||
Cash and cash equivalents at the beginning of the year | 126,371 | 189,655 | 50 | % | 63,284 | 17,569 | ||||||||||||||
Cash and cash equivalents at the end of the year | 101,621 | 172,624 | 70 | % | 71,004 | 15,992 | ||||||||||||||
Funds provided by (used) in operating activities | (47,280 | ) | 64,521 | 236 | % | 111,801 | 5,977 | |||||||||||||
Funds provided by (used) in investing activities | (48,214 | ) | (58,142 | ) | 21 | % | (9,928 | ) | (5,386 | ) | ||||||||||
Free cash-flow** | (95,494 | ) | 6,379 | 101,873 | 591 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
** | Free cashflow is not registered under NIF but are reconciled to NIF as set forth above. Note: Numbers may not total due to rounding. |
31/33
PEMEX | Corporate Finance Office — Investor Relations |
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 June 30, 2007
Subsidiary | ||||||||||||||||||||||||||||
Exploration and | Gas and Basic | Companies and | Intersegment | |||||||||||||||||||||||||
Production | Refining(1) | Petrochemicals | Petrochemicals | Corporate | Eliminations | Total | ||||||||||||||||||||||
Six months ending June, 2007 | ||||||||||||||||||||||||||||
Total sales | 398,044 | 219,258 | 111,057 | 28,054 | 336,421 | (580,307 | ) | 512,526 | ||||||||||||||||||||
External clients | — | 199,863 | 68,429 | 10,555 | 233,680 | — | 512,526 | |||||||||||||||||||||
Intersegment | 398,044 | 19,395 | 42,628 | 17,500 | 102,741 | (580,307 | ) | — | ||||||||||||||||||||
Operating income (loss) | 310,206 | (33,316 | ) | 7,113 | (6,423 | ) | 847 | (988 | ) | 277,440 | ||||||||||||||||||
Net income (loss) | 30,802 | (8,684 | ) | 6,275 | (6,719 | ) | 32,977 | (27,684 | ) | 26,968 | ||||||||||||||||||
As of June 30, 2007 | ||||||||||||||||||||||||||||
Assets | 1,164,473 | 368,169 | 136,312 | 70,925 | 2,227,939 | (2,719,727 | ) | 1,248,090 | ||||||||||||||||||||
Six months ending June 30, 2006 | ||||||||||||||||||||||||||||
Total sales | 439,841 | 217,315 | 110,192 | 13,952 | 353,319 | (591,426 | ) | 543,192 | ||||||||||||||||||||
External clients | — | 195,052 | 68,059 | 9,798 | 270,282 | — | 543,192 | |||||||||||||||||||||
Intersegment | 439,841 | 22,262 | 42,133 | 4,153 | 83,037 | (591,426 | ) | — | ||||||||||||||||||||
Operating income (loss) | 350,361 | (36,425 | ) | 6,704 | (7,330 | ) | (3,415 | ) | 7,256 | 317,151 | ||||||||||||||||||
Net income (loss) | 32,763 | (19,601 | ) | 5,990 | (9,363 | ) | 27,964 | (17,626 | ) | 20,127 | ||||||||||||||||||
As of June 30, 2006 | ||||||||||||||||||||||||||||
Assets | 939,636 | 371,988 | 121,485 | 120,478 | 1,813,097 | (2,208,989 | ) | 1,157,696 |
* | Derived from unaudited consolidated financial statements prepared in accordance with Normas de Informacion Financiera (Mexican Financial Reporting Standards (FRS)) -formerly Mexican GAAP- issued by the Consejo Mexicano para la Investigación y Desarrollo de Normas de Información Financiera (CINIF). Inflation recognition is also in accordance with Mexican FRS. Accordingly, peso figures are presented in constant Mexican pesos as of June 30, 2007. | |
Note: Numbers may not total due to rounding. |
32/33
PEMEX | Corporate Finance Office — Investor Relations |
ri@dcf.pemex.com | ||
Celina Torres | Andrés Brügmann | |
ctorresu@dcf.pemex.com | abrugmann@dcf.pemex.com | |
Rebeca González | Guillermo Regalado | |
rgonzalez@dcf.pemex.com | gregalado@dcf.pemex.com | |
Eduardo Ruíz-Healy Álvarez | Paulina Nieto | |
eruizh@dcf.pemex.com | pnietob@dcf.pemex.com |
§ | drilling and other exploration activities; | ||
§ | import and export activities; | ||
§ | projected and targeted capital expenditures and other costs, commitments and revenues; and liquidity. |
§ | 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. |
33/33
Petróleos Mexicanos | ||||
By: | /s/ Guadalupe Marino Bañuelos | |||
Guadalupe Marino Bañuelos | ||||
Associate Managing Director of Finance | ||||
• | drilling and other exploration activities; | ||
• | import and export activities; | ||
• | projected and targeted capital expenditures and other costs, commitments and revenues; and | ||
• | liquidity. |
• | 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. |