Financial Results 4 th Quarter 2009. 2 4Q09 Main Highlights Upstream Downstream International Trade...

Financial Results4th Quarter 2009

March 3, 2010

2

4Q09 Main Highlights

Upstream

Downstream

International Trade

Financial Results

Other Relevant Topics

Questions and Answers

Content

3

Oct - Dec

553.9%

EBITDA (1)

Total sales

Billion pesos

Net income (loss)

Change

• The net loss decreased by Ps.101.0 billion due to (i) increased sales mainly explained by higher prices of the Mexican crude basket and (ii) a favorable effect in the foreign exchange gain due to the appreciation of the peso against the U.S. dollar.

(1) Earnings before interests, taxes, depreciation and amortization. Excludes IEPS.(2) Convenience translations into US dollars amounts in pesos have been made at the average exchange rate of Ps.

13.0743 = US$1.00 for the fourth quarter of 2009.Numbers may not total due to rounding.

Billion dollars(2)

Income before taxes and duties

264.0 50.8 19.2% 24.1

(31.0) 140.7 171.7 10.8

(117.6) (16.6) 101.0 (1.3)

110.4 181.2 70.8 64.2% 13.9

314.8

2008 2009 2009Oct - Dec Oct - Dec

4Q09 Financial Highlights

85.9%

4

• Crude oil production averaged 2.6 MMbd, a 5.3% decrease, mainly due to the decline of the Cantarell project, which was partially offset by a 10.2% increase in the production of the Ku-Maloob-Zaap project.

Numbers may not total due to rounding.

Production Change

– Crude Oil

• Petroleum Products

• Natural Gas

• Liquid Hydrocarbons

Thousand barrels per day, except natural gas which is in million cubic feet per day

2,729 2,583 (146) -5.3%

7,260 7,009 (251) -3.5%

1,482 1,545 64 4.3%

2008 2009Oct - Dec Oct - Dec

4Q09 Operating Highlights

3,088 2,953 (135) -4.4%

5

Content


Upstream

Downstream

International Trade

Financial Results



6

Acquisition of Seismic Information

Upstream: Exploration

4,4306,436

5795,315

4Q08 4Q09

3D (km ) 2D (km )2

• The decrease in 2D seismic data is primarily due to the lack of acquisition in the “Deep Gulf of México” due to the unavailability of vessels.

• In contrast, the increase in higher acquisition of 3D seismic is explained by an increase in activity in the Burgos and Veracruz projects, as well as in the development fields at the ATG project.

Main Discoveries 4Q09

Initial Production

Project Well Crude oil

(Mbd)

Gas (MMcfd)

Crudo Ligero Marino

Xux-1 5.4 24.9

Ku-Maloob-Zaap

Chapabil-1

2.1 1.0

Bellota-Chinchorro

Madrefil-1

5.8 7.6

Holok-Temoa Leek-1 0.3 22.5

Delta del Grijalva Terra-1 7.9 22.3

Burgos Cali-201 0.22 15.9

Trapiche-1

0.04 4.2

Cougar-1 - 7.9

Veracruz Cervelo-1A

- 5.2

7

62% 57%

38% 43%

Oct - Dec 2008 Oct - Dec 2009

1,681 1,472

1,047 1,111

Production Thousand barrels per day


Light and Extra-lightHeavy

-5.3%

2,729 2,583

• Total crude oil production decreased 146 Mbd:

– Heavy crude oil production decreased by 12.4%, due to the decline of the Cantarell project, which was partially offset by a 10.2% increase in the production of the KMZ project.

– Production of light and extra-light crude oil increased as a result of the completion of wells at the Delta del Grijalva and Costero Terrestre projects in the Southern region, as well as at the Crudo Ligero Marino project in the Southwestern region.

Upstream: Crude Oil

8

-3.5%

65% 63%

35% 37%


4,711 4,422

2,550 2,587

7,260

Production(1)

Million cubic feet per day

Non-associatedAssociated


7,009

• Natural gas production decreased by 251 MMcfd, due to a decrease of 289 MMcfd in associated gas with high nitrogen content, which is primarily due to the optimization works in the transition zone at the Cantarell project.

• In contrast, non-associated gas production increased by 1.5%, mainly due to the completion of wells in the Burgos project in the Northern region.

Upstream: Natural Gas

(1) Includes nitrogen.

9

186276

2217

89% 94%

11% 6%


Number of wells completed

ExplorationDevelopment


293

• Development wells totaled 276, an increase of 89 wells, primarily due to higher activity at the ATG project.

Upstream: Drilling

40.2%

209

187

10

Main accomplishments during the fourth quarter of 2009

• Completion of four development wells;• 20 major and 13 minor well workovers; and• installation of three well recovery platforms:

Akal-TGP2, TR and Akal-MA.• As of December 31, 2009, the decline rate of the

Akal-Nohoch field remained at 12%.

Cantarell

KMZ

• Completion of three development wells;• 8 major and 14 minor well workovers;• installation of the PB-Ku-H production platform;• installation of 2.1 km of a 24” oil and gas pipeline from

the Maloob-C drilling platform to PB-Ku-H production platform; and

• installation of 0.5 km of a 12” pneumatic-pump gas pipeline for the interconnection of the KMZ-22 line with the Maloob-C drilling platform.

• On December 29, 2009, the KMZ project reached a new maximum historical production level of 881 Mbd.

Upstream: Developments

• Completion of 128 development wells;• 50 major and 114 minor well workovers; and• Implementation of field laboratories.

ATG

11

• A decrease in the decline rate from 38% in the 1H09 to 12% in the 2H09

• Production maintenance

• Pressure increase in the basin´s gas cap

• The productivity has remained stable since July 2009

400

450

500

550

600

650

700

750

800

Ene Feb Mar Abr May J un J ul Ago Sep Oct Nov Dic

Año 2009

Qo

(M

BP

D)

115

120

125

130

135

140

145

150

155

160

165

No

. P

ozo

s A

cti

vos

Qo (MBPD)Número de Pozos Operando

12%

38%

Actions taken in the Akal field affect its dynamic behavior

2800

3000

3200

3400

3600

3800

4000

4200

4400

4600

4800

39815 39845 39875 39906 39936 39967 39997 40027 40058 40088 40119 40149

120

125

130

135

140

145

150

155

160

165

170

Ene Feb Mar Abr May J un J ul Ago Sep Oct Nov Dic

Qo (

Norm

alizada

BP

D/P

ozo)

No. P

ozos A

cti

vos

Numero de Pozos Activos Qo Normalizada AKAL

0%

Upstream: Accomplishments of Cantarell

12

Main accomplishments during the fourth quarter of 2009

• Completion of four development wells;• 20 major and 13 minor well workovers; and• installation of three well recovery platforms:

Akal-TGP2, TR and Akal-MA.• As of December 31, 2009, the decline rate of the

Akal-Nohoch field remained at 12%.

Cantarell

KMZ

• Completion of three development wells;• 8 major and 14 minor well workovers;• installation of the PB-Ku-H production platform;• installation of 2.1 km of a 24” oil and gas pipeline from

the Maloob-C drilling platform to PB-Ku-H production platform; and

• installation of 0.5 km of a 12” pneumatic-pump gas pipeline for the interconnection of the KMZ-22 line with the Maloob-C drilling platform.

• On December 29, 2009, the KMZ project reached a new maximum historical production level of 881 Mbd.

Upstream: Developments

• Completion of 128 development wells;• 50 major and 114 minor well workovers; and• Implementation of field laboratories.

ATG

13

Upstream: Accomplishments of Aceite Terciario del Golfo (ATG)

Other ActivitiesField Labs

• Focus on value generation

• Improve well productivity

• Improved recovery

• Cost Reduction

• Depletion management

Align efforts

Allocation of 10km2 per contractor to develop the area

14

23 26 21

31 29

47

25

64

32

43

25

60

71 7479 77

70 68

56

4640 37 35 35

CompletionNumber

DrillingWells

43 4451 51 50

6153

71 7382

108107

58 546355

39304034 34 34 35

29

201012009

Total: 794 Total: 505

Total: 426 Total: 688

• Change focus to complete vs. drilling

• Horizontal wells

• Fracture design

• Cost reduction

J F M A M J J A S O N D J F M A M J J A S O N D


(1) Estimado

15


717

3D sismic (Km2)

Wells drilled

Wells completed

Fractures

Workovers

Artificial Lift

Drilling platforms

505

112

688

364

617

CAPEX (Ps.) 20,764

1,396

ene feb mar abr may jun jul ago sep oct nov dic0

20

40

60

Oil productionMbd

average= 47.8 Mbd

ene feb mar abr may jun jul ago sep oct nov dic0

30

60

90

120

Gas productionMMcfd

average= 88.0 MMcfd

Real 2009 29.5 Mbd

Real 2009 78.8 MMcfd

JAN ------------------------------------------------------------------------ DEC

JAN ------------------------------------------------------------------------ DEC

16

Content


Upstream

Downstream

International Trade

Financial Results



17

38% 38%

62% 62%


471 498

778 817

Crude oil processing Thousand barrels per day

Light Crude

• Total crude oil processing increased by 5.3%, due to reduced maintenance activities, in accordance with a prescribed program.

• Light crude oil and heavy crude oil processing increased by 5.0% and 5.7%, respectively.

• Capacity utilization rate increased to 86.0%, 4.0 percentage points higher than the rate in 4Q08.


Heavy Crude

1,249 1,315

5.3%

Downstream:Oil Refining

18

359 370


3,243 3,403

993 1,088

5.5%

3,448 3,639


77% 76%

23% 24%


Dry gas productionMillion cubic feet per day

SweetSour


Natural gas liquids productionThousand barrels per day

On-shore natural gas processing Million cubic feet per day

6.0%

4,236 4,491

Downstream:Natural Gas Processing

3.1%

19

27% 26%

20% 22%23% 22%

31% 30%


396 398

295 346335 338

455 464


Production of petroleum products Thousand barrels per day

(1) Includes transfers from “La Cangrejera” petrochemical complex.(2) Includes LPG from Pemex-Gas and Basic Petrochemicals and Pemex-Refining, jet fuel, furfural extract, among others.Numbers may not total due to rounding.

• Total production increased by 63 Mbd, primarily as a result of increased production of fuel oil.

Gasoline(1)

DieselFuel OilOthers(2)

Change

1,482 1,545

Downstream:Petroleum Products

4.3%

0.9%

17.3%

0.5%

2.0%

20

Variable refining marginDollars per barrel

Number of franchised gas stationsAs of December 31,

• This decrease is primarily explained by the behavior of crude oil and petroleum prices in the international markets.

• As of December 31, 2009, the number of franchised gas stations was 8,803.

2008 2009

Downstream:Variable Refining Margin and Service Stations

2.331.61

Jan - Dec 2008 Jan - Dec 2009

5.4%

8,351

8,803

-30.9%

21

79% 73%

1% 2%

20%25%


728510

8

18184

175

920 • This decrease in

petrochemicals production was primarily driven by:

scheduled maintenance activity in plants that produce aromatics and methane derivatives; and

technical problems in the Ammonia VI plant.

Net Petrochemicals Production(1) Thousand tons

Ethylene

Ammonia

Others

(1) Includes refined products.Numbers may not total due to rounding.

Change

Downstream:Petrochemicals Production

703

125.0%-4.9%

-29.9%

-23.5%

22

Content


Upstream

Downstream

International Trade

Financial Results



23

88% 83%

12% 17%


1,179

Volume of crude oil exports(1)

Thousand barrels per day

LightHeavy

Mexican crude mix average price (dollars per barrel):(1) At 60º F.Numbers may not total due to rounding.

Exports distribution100% = Mbd

Far East

2%

84%

9%

5%

-12.0% United States of America

Rest of the Americas

Europe

1,249

1,2491,040

171

209

1,420

1,249

International Trade

70.3745.74

24

8.3%

Petroleum productsThousand barrels per day

Petrochemicals Thousand tons

Dry natural gas Million cubic feet per day

Exports

Source: P.M.I.® except natural dry gas.

Imports

163.2%

-69.0%

-3.1%

30.5%

19.1%

International Trade:Other Products

76201


137 178


206 223547 530

198

61397 473

25

Content


Upstream

Downstream

International Trade

Financial Results



26

5.5%-25.8% 6.6% 76.8%1.3% 42.5% 204.3%19.2%

Domestic Exports

Sales(

1)

Domestic

Billion pesos

Petro- chem.

Crude, gas & condensates

Petro-leum products

Petro-chem.Exports

Petro-leum products

Petro- chem.

Crude, gas & condensates

(1) Includes revenue from services.


314.8

132.9 5.8

140.2 6.2

88.3 0.2

125.8 24.7 0.6

14.0

160.4

162.4

Oct - Dec

Oct - Dec

2008

2009 Dry gas

Income Statement:Sales

16.1

21.7 264.0

151.1

102.5

47.5%

27

+ +

+ +

=

=

General expenses

Cost of sales

Dist. Admin.

Net cost of employees benefits

Sales Costs and operating expenses

Billion pesos


213.0

164.8

11.7

8.1

20.6

23.1

Oct - Dec2008

Oct - Dec2009

242.8

264.0 245.3

314.8

195.9 33.1

28.7

Income Statement:Costs and Operating Expenses

20.1%22.7% 30.8% -12.2%

19.2%

28

(16.6)

140.7 (157.3)

6.6

118.915.2

-57.4%

Billion pesos

Other net revenues (expenses)(1)

CFR(2) Income (loss) before taxes & duties

Taxes & duties

(1) Includes subsidiaries and affiliates.(2) Comprehensive financing result. Numbers may not total due to rounding.

Operating income

Net income (loss)

Oct - Dec

Oct - Dec

2008

2009

-24.5% -39.4%

+ + = - =

533.2%

Income Statement:Net Income

(31.0)

35.6

(85.4)

(86.6) (117.6)

18.8

107.7% 85.9%553.9% -

81.5%

29

587

632

27 (18)

128 191

495576

Dec 08 Dec 09

27 15

832968

364

398

Dec 08 Dec 09

Assets

Total Assets:

Change

Liabilities & Equity

Change

Total Liabilities + Equity:


Billion pesos

11.6%

9.3%

14.5%

1,237 1,381 1,237 1,381 11.6%

7.7%

16.4%

Other

Current

Fixed

Debt

OthersEquity:

Reserve for Employee Benefits

Consolidated Balance Sheet

-44.4%

49.2%

30

495.5 529.3

91.2 102.6

472.5 503.7

Dic 08 Dic 09

Total debt

Billion pesos

(1) Convenience translations into U.S. dollars amounts in Mexican pesos have been made at the average exchange rate of Ps. 13.0587 = US$1.00 for the quarter ended December 31, 2009.


Billion pesos

Long Term

Short Term

• Net debt increased by 6.6%, to Ps. 503.7 billion, or US$38.6 billion.

• Total debt increased by 7.7%, to Ps. 631.9 billon, or US$48.4 billion(1).

Net debt

631.9 6.6%

7.7%

Total and Net Debt

586.7

84% 84%

16% 16%

Dec 08 Dec 09

31

Content


Upstream

Downstream

International Trade

Financial Results



32

Appointments

Chief of Staff of the General

Direction

Director General of

Pemex-Refining

Board ofDirectors

January 25,

2010

Changes in the Corporate

Direction of:

Director General of Pemex-Gas and Basic

Petrochemicals

• On January 4, 2010, President Felipe Calderón appointed Jordy Herrera Flores as Director General of Pemex-Gas and Basic Petrochemicals.

• Esteban Levin Balcells became PEMEX’s Corporate Director of Management;

• On December 28, 2009, President Felipe Calderón appointed Miguel Tame Domínguez as Director General of Pemex-Refining.

• On October 29, 2009, PEMEX’s Chief Executive Officer appointed Homero Niño de Rivera Vela as Chief of Staff of the PEMEX General Direction.

Information Technology

and Business Processes

Management

Finance

• Mauricio Abraham Galán Ramírez became PEMEX’s Corporate Director of Information Technologies and Business Processes.

• Carlos Treviño Medina became PEMEX’s Chief Financial Officer; and

33

• There was a public exchange offer of the securities issued by Fideicomiso F/163 for securities issued by Petróleos Mexicanos.

• Petróleos Mexicanos assumed the Master Trust’s obligations pursuant to the terms and conditions of underlying agreements and other documentation relating to the issuance of such bonds.

• The terms and conditions of the securities issued by Fideicomiso F/163 and the Master Trust have not been modified.

Elimination of PIDIREGAS

34

Recent issuances

CreditLines

• During the fourth quarter of 2009, Petróleos Mexicanos obtained US$594 million from credit lines guaranteed by export credit agencies.

CapitalMarkets

• On January 28, 2010, Petróleos Mexicanos issued US$1 billion in bonds due 2020 with a 6.0% semi-annual coupon.

• On February 4, 2010, Petróleos Mexicanos issued approximately Ps.15 billion in domestic bonds (Certificados Bursátiles) divided in three tranches:

• Approximately Ps. 8 billion due 2015 with a TIIE-28 plus 70 basis points coupon;

• Ps. 5 billion due 2020 with a 9.1% semi-annual coupon; and

• Approximately Ps. 2 billion in UDIS due 2020 with a 4.2% semi-annual coupon.

• On February 11, 2010, Petróleos Mexicanos reopened CHF150 million in bonds due 2014 with an annual 3.5% coupon.

35

c

Content


Upstream

Downstream

International Trade

Financial Results



36

www.pemex.com

Investor Relations

(+52 55) 1944 - 9700

[email protected]

Financial Results 4 th Quarter 2009. 2 4Q09 Main Highlights Upstream Downstream International Trade...

Documents

Transcript of Financial Results 4 th Quarter 2009. 2 4Q09 Main Highlights Upstream Downstream International Trade...