Worried: Mexican Energy Minister Georgina Kessel
Kessel voices Pemex concerns
Mexico's Energy Minister Georgina Kessel said today she is concerned about state-run oil company Pemex's poor financial results and the company's board is reviewing possible actions to halt the decline.
The Minister's comments about Pemex, led by chief executive officer Jesus Reyes Heroles, come as President Felipe Calderon is promising a shake-up in his administration.
"Unfortunately, the financial situation has not improved as it should be improving and we are analysing what are the things we can do to reverse the situation," Reuters quoted Kessel as saying in an interview with broadcaster Televisa.
Pemex, which is state-owned but finances much of its spending on debt markets, posted a 93% drop in second-quarter net profit as revenues slid 30% due to lower crude prices and export volumes.
In his state of the nation speech on Wednesday, Calderon said he wants to see further reform in the oil industry to boost Pemex's profitability.
Calderon's presidency is at its midpoint and he is entering budget negotiations with a newly elected Congress dominated by the opposition.
Falling oil production has put Mexico's strained public finances under tight scrutiny.
Oil revenues fund nearly 40% of the federal budget and two bond rating agencies have warned they may downgrade Mexico's debt ratings due to the country's heavy reliance on the waning oil industry.