President Andrés Manuel López Obrador has never been short of criticisms about his predecessor’s legacy. But he has reserved a special contempt for the sweeping overhaul that opened Mexico’s tightly held energy industry to the private sector, the New York Times reported. He has called the changes a form of legalized “pillaging,” the product of corruption and a resounding failure. He has suggested that some foreign energy investors are “looting” the nation and that Mexican lawyers who work for them are guilty of treason.
Mexico
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Mexico’s Supreme Court on Wednesday ruled in favor of the country’s telecoms regulator over a label that aims to curb the dominance of Carlos Slim’s telecommunications company America Movil, Reuters reported. The ruling deals a blow to one of the country’s largest companies in its ongoing fight to peel back restrictions. Mexico’s Federal Institute of Telecommunications (IFT) acted within the constitution when it determined that the America Movil Economic Interest Group, made up of Telcel and other subsidiaries, is a “preponderant agent”, the court said in a statement.
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Mexico does not see the need to reduce its oil exports, as many Latin American producers did last year, because demand and pricing for its flagship crude remains firm, the head of state oil company Pemex’s commercial arm said on Tuesday, Reuters reported. Mexico briefly joined an effort by the Organization of the Petroleum Exporting Countries and its allies last year to reduce production to revive crude prices but it limited its contribution to the cuts to 100,000 barrels per day (bpd) for a couple of months through June. The nation had to curb fuel imports amid lower demand.
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Petroleos Mexicanos had its first back-to-back quarterly gains in four years as the weakening of the peso boosted the value of its dollar-denominated crude, Bloomberg News reported. Fourth-quarter net income was 123.2 billion pesos ($5.9 billion), following a profit in the previous quarter and compared with a year-earlier loss of 171.5 billion, Pemex said on Friday. Its currency-related gains more than offset operational losses. Pemex has struggled to reverse 16 years of production declines and meet a government goal to reduce imports of fuel and produce more gasoline domestically.
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As a follow up to its announcement on February 19 that the conditions to drawing the remaining undrawn commitments of the Tranche 2, under the senior secured superpriority multi-tranche debtor in possession term loan facility, had been met and that the company had formally requested such final disbursement, Grupo Aeroméxico, S.A.B. de C.V. announced that it has received such final disbursement in the amount of US$625 million.
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A lawyer for Frontera Holdings LLC, the owner of a natural gas plant near the U.S.-Mexico border, told a judge on Tuesday that it could face fines in Mexico after it was unable to provide electricity for several days due to the brutal winter storm that hit Texas, but that it intends to proceed with its proposed restructuring as planned, Reuters reported. Frontera attorney Matthew Fagen of Kirkland & Ellis told U.S.
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Mexico President Andres Manuel Lopez Obrador announced new tax benefits for Pemex as the beleaguered state oil company seeks to reverse long-term production declines and reduce debt, Bloomberg News reported. Petroleos Mexicanos will get an additional 14% credit stimulus to apply to the taxes it pays on hydrocarbons capped at 73.3 billion pesos ($3.6 billion) for this year, according to a presidential decree. The new benefit comes in addition to previous measures that reduced Pemex’s profit-sharing duty from 65%, to 58% in 2020 and 54% in 2021, respectively.
Mexico President Andres Manuel Lopez Obrador announced new tax benefits for Pemex as the beleaguered state oil company seeks to reverse long-term production declines and reduce debt, Bloomberg News reported. Petroleos Mexicanos will get an additional 14% credit stimulus to apply to the taxes it pays on hydrocarbons capped at 73.3 billion pesos ($3.6 billion) for this year, according to a presidential decree. The new benefit comes in addition to previous measures that reduced Pemex’s profit-sharing duty from 65%, to 58% in 2020 and 54% in 2021, respectively.
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Mexico is preparing a significant tax break for its state-owned oil firm while the constitution blocks it from taking on debt to increase social spending during the pandemic, Finance Minister Arturo Herrera said in an interview, Bloomberg News reported. Lowering the state’s demands on Pemex, its biggest taxpayer, could help the oil giant reorder its finances as it struggles with a $110.3 billion debt load, sinking production, and some of the highest tax obligations of any oil company in the world.
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Mexican airline Aeromexico, which is undergoing a chapter 11 restructuring process, on Tuesday posted a loss in the fourth quarter of last year, taking yet another hit from the coronavirus pandemic’s drain on global tourism, Reuters reported. The company reported a net loss of 9.72 billion pesos ($487 million) in the October to December period, with passenger capacity down nearly 48% from the same quarter a year earlier. It also reported losses in the first three quarters of 2020, including a slimmer loss of $130 million in the prior period.