En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Mexico's Alfa preformance due to low prices force selling oil assets, halting energy Spending

 


MEXICO CITY
Petroleumworld.com 02 16 2017

Mexican conglomerate Alfa said on Feb. 14 it will sell its energy projects in the Eagle Ford Shale in Texas, as well as its energy assets in Peru, while also stalling all energy investments due to lingering low oil prices.

CFO Ramon Leal said at a press conference that Alfa also seeks to sell certain oil service contracts in Mexico.

"We're focusing our resources in our core businesses and putting a permanent pause on our energy investments," Leal said, adding that he did not see oil prices rising any time soon.

Last year, Alfa said its energy services unit Newpek suspended some exploration and drilling projects in the U.S in the face of the persistent fall in petroleum prices.

Alfa holds mineral rights in southeast Texas—in the Eagle Ford and in the Edwards and Wilcox fields—as well as in Oklahoma, Kansas and Colorado. Newpek, which reports on Feb. 15, also works in mature oil fields in the eastern Mexican state of Veracruz.

Earlier on Feb. 14, Alfa reported a loss of 889.7 million pesos (US$43 million) in fourth-quarter 2016, hurt by a weak peso and lower operating results.

The company, which operates petrochemical, car parts and refrigerated food businesses, reported a profit of 162 million pesos in fourth-quarter 2015.

Alfa posted revenue of 76.7 billion pesos for the quarter, an increase of 18% from the same period a year prior.

But the performance of its Axtel telecoms business was negatively impacted by the weakness of the peso against the dollar, in addition to cuts in government spending that resulted in fewer projects.

The peso has been hit by repeated threats by U.S. President Donald Trump to scrap the North American Free Trade Agreement, raising the risk of a major economic shock for Mexico.

Even so, Alfa said car parts unit Nemak's consolidated EBITDA performed well during the quarter, and reached an annual record in 2016, due to solid automobile demand in North America and Europe.

Alfa also said a strong dollar benefited Nemak's sales in the fourth quarter.

Shares in Alfa closed down 0.67% at 26.61 pesos per share before the company reported.

(US$1 = 20.64 pesos on Dec. 30)




Story by Reuters.

We invite all our readers to share with us
their views and comments about this article
.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:P.Ohep F. /Producer - Publisher:P.Ohep F./
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2016, Petroleumworld ™  / Elio Ohep Fitzgerald- All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.