Early warning! PEMEX suspended
Contracts with service providers and suppliers
Like oil producers around the world, Pemex has been struggling to cope with sluggish demand and falling sales. In addition, its debt is as high as 105 billion U.S. dollars. Last month, it reported a quarterly loss of 23.6 billion U.S. dollars - one of the worst quarterly results in its history.
Bloomberg said that the oil giant Pemex has begun suspending oilfield service contracts and actually cut thousands of jobs. This move aims to reduce the cost of Pemex. So far, at least eight Mexican and international oilfield service providers and suppliers have participated in it. Most of the business reduction jobs involved are offshore oilfield services. Unemployment. A Pemex spokesperson declined to comment, noting that the information did not come from the company.
Faced with the effects of Covid-19 and oil price fluctuations, the Mexican National Petroleum Corporation (PEMEX) was forced to abandon its ambitious plans to increase capital expenditures and expand mining to reverse the 15-year decline in oil production. And Mexican President Andres Manuel Lopez Obrador (Andres Manuel Lopez Obrador) also took the Mexican National Petroleum Corporation as the core of his government's efforts to achieve energy self-sufficiency.
Pemex is struggling with a debt burden of more than US$100 billion, with a loss of US$23 billion in the first three months of this year, a record high. Covid-19 has severely hit its offshore business, and as many as 112 employees have died of the virus so far.
Pemex said in a document filed with the US Securities and Exchange Commission in May that it predicted a budget deficit of 30 billion pesos (about 1.4 billion U.S. dollars) this year. The document shows that the company has sought approval from the board of directors and will cut operating expenses by approximately 5 billion pesos and production capital expenditures by 40.5 billion pesos this year.
National newspaper "Reforma" reported that as a result of Pemex’s budget cuts, as many as 8,000 workers would be unemployed, which resulted in the cancellation of 45 contracts with offshore service providers such as Mexico’s Marinsa de Cotemar and Cotemar, worth about 1.6 One hundred million U.S. dollars.
"Everything is normal now," said Greta Alcantara, director of institutional relations at Marinsa's parent company Grupo Cemza. He said that there are no layoffs yet and that Marinsa is "working hand in hand with Pemex". Cotemar declined to comment.
It is not the first time that Pemex suppliers have felt this pressure. During the last plunge in oil prices, about 10,000 oil industry service contractors lost their jobs because Pemex was forced to cut billions of dollars in spending and freeze exploration and production contracts.
Johnson Matthey plans to lay off 2,500 people worldwide
On the 11th, the British specialty chemicals manufacturer Johnson Matthey said on Thursday that due to the uncertainty caused by the new crown epidemic, it will cut its fiscal 2020 dividend and plan to lay off 2,500 people worldwide.
The company said that on the basis of the previously announced cost reduction of 120 million pounds, it plans to cut costs by at least 80 million pounds before the end of the fiscal year 2023, which will result in the reduction of about 2,500 positions worldwide.
Johnson Matthey announced its fiscal year results as of March 31. Revenue for the current fiscal year was 14.577 billion pounds, a 36% increase from 10.745 billion pounds in the previous fiscal year, mainly due to the increase in the price of precious metals. Operating profit for the current fiscal year was 388 million pounds, a 27% decrease from the 531 million pounds in the previous fiscal year. Excluding precious metals, sales in the current fiscal year were 4.17 billion pounds, compared with 4.214 billion pounds in the previous fiscal year; operating profit was 539 million pounds, and 566 million pounds in the previous fiscal year.
The company also said that due to the uncertainty caused by the epidemic, it will not be able to provide performance forecasts for FY2021.
Source: Mobei Public Account