In the first quarter of 2024, Petróleos Mexicanos (Pemex) experienced a significant financial downturn.
Profits plummeted by 91.7%, falling from MXN 56.735 billion ($3.40 billion) in early 2023 to just MXN 4.682 billion ($280.69 million) in the same period this year.
A recent submission to the Mexican Stock Exchange noted that rising sales costs, administrative expenses, financing, and taxes drove this sharp decline.
During this challenging period, Pemex’s revenues decreased by 3%, amounting to MXN 405.898 billion ($24.34 billion).
This reduction stemmed mainly from diminished domestic and export sales, influenced by the falling prices of crude oil and fuels.
Nevertheless, the company effectively reduced its total financial debt by 5.7%, aiming to maintain net debt near zero.
By March 2024, Pemex’s financial debt reached MXN 1.69 trillion ($101.35 billion), with an exchange rate of MXN 16.67 per dollar.
In production, the company saw a 3% drop in crude oil and condensate output to 1.83 million barrels per day year-over-year.
Conversely, refining operations saw an improvement, with an 18% increase to 985,000 barrels per day.
These operational and financial shifts align with the broader energy policy of President Andrés Manuel López Obrador’s administration.
The government has rolled out robust support measures for Pemex, totaling MXN 869.000 billion ($52.10 billion).
These initiatives include capital injections, debt repayments, and substantial investments in refining and fertilizer sectors, alongside tax reductions.
These strategic efforts aim to strengthen Pemex as it contends with financial turbulence and market volatility.
They ensure the sustainability and profitability of Mexico’s oil giant in a challenging economic environment.