UPDATE 1-Mexico's Pemex posts 1st-qtr net loss
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MEXICO CITY, May 2 (Reuters) - Mexican state oil monopoly Pemex posted a first-quarter net loss of 10.1 billion pesos ($915 million) on Wednesday, hurt by decreased export volumes, a lower export price for Mexican crude and higher costs.
The loss compared with a year-ago net profit of 8.1 billion pesos amid soaring oil prices that had lifted heavily taxed Pemex into profit in mid-2005 for the first time in years.
Mexico's crude oil export mix was priced at an average $47.34 per barrel over the first quarter, down from a revised $50.12 in the year-ago period, as sky-high world oil prices suffered a correction.
Pemex's oil exports also dipped to an average of 1.711 million barrels per day from 2.003 million bpd in the year-ago period as declining yields at Mexico's Cantarell field pulled oil output down to 3.158 million bpd from 3.345 million.
Pemex reported first-quarter sales down 6 percent at 235.9 billion pesos and operating profit down 16 percent at 129.6 billion pesos as overall costs rose 9 percent.
Mexico is the world's No. 9 exporter of crude oil by volume and a key supplier to the United States.
Pemex has been battling to maintain its peak oil production and export levels of the last few years since the 28-year-old Cantarell field began to decline over the past few months.
Cantarell -- the world's biggest offshore oil field and for years the source of 60 percent of Mexico's oil -- is expected to yield 15 percent less oil this year than in 2006.
Pemex has begun exploring potential huge deepwater oil deposits in the Gulf of Mexico, but acknowledges such projects would go much faster if the law were changed to allow joint ventures with private or foreign oil companies.
Pro-business President Felipe Calderon is keen to soften Mexican laws to allow more private investment in the sector, but faces stiff resistance from opposition politicians who fear creeping privatisation.
Pemex has done well in past months in the natural gas sector, where it relies on U.S. imports to top up its own output. Natural gas production surged 14 percent in the first quarter to average 5.618 billion cubic feet per day.
Pemex is due to hold a conference call with investors on Monday to discuss its quarterly performance. ($1=11.044 pesos at end-March)
