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Mexico’s Pemex posts USD6B quarterly profit

MEXICO CITY (AFP) – Mexican state energy giant Pemex on Monday reported a USD6 billion profit for the first quarter of 2022 on the back of higher oil prices.

The net profit of MXN122.5 billion for the three months to March compared with a loss of MXN37.4 billion in the same period of 2021.

The group lost around USD23 billion in 2020 as it joined other oil firms worldwide hit by an economic slump that caused oil prices to briefly turn negative for the first time.

But with energy prices since driven higher by rising demand and supply concerns fuelled by Russia’s invasion of Ukraine, Pemex said its first-quarter revenue rose nearly 60 per cent from a year earlier, to MXN506.8 billion.

Favourable currency movements also helped the bottom line, while debt fell 3.9 per cent from the end of 2021, to USD108 billion, the group reported.

Since taking office in 2018, Mexican President Andres Manuel Lopez Obrador has sought to help Pemex with cash injections and other measures following years of declining production.

In January, the finance ministry said that Pemex had reduced its debt by USD3.2 billion thanks to a refinancing process supported by government funding.