MEXICO · OIL
Key Facts
- The country Mexico is Latin America’s second-largest economy, and its state oil company Pemex is among the most indebted oil firms in the world.
- Why it matters Pemex owns the Deer Park refinery in Texas, sells bonds to dollar investors and carries a financial debt of US$77.6 billion that shapes Mexico’s credit standing.
- Why now Pemex’s results for July to September 2026 were made public by Friday 30 October 2026.
- What happened Pemex lost 10,795 million pesos (US$574 million) in the third quarter, 82.4% less than a year earlier but a turn from an 18,024 million peso (US$959 million) profit in the second quarter.
- The numbers Sales rose 28.5% to 486,779 million pesos (US$25.9 billion) and EBITDA, a measure of cash operating profit, rose 112.2% to 123,800 million pesos (US$6.6 billion).
- What it means for you A US bondholder or fuel buyer sees an oil company that earns more from operations but still loses money on currency swings and derivatives.
- Still open Whether Pemex can return to profit while the peso weakens, and how much of its lower debt rests on federal support.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
Mexico’s state oil company Pemex lost 10,795 million pesos (US$574 million) in the third quarter of 2026, according to results carried by Expansión and El CEO on Friday 30 October. That is a turn from the 18,024 million peso (US$959 million) profit of the second quarter, although the loss is 82.4% smaller than the 61,242 million peso (US$3.3 billion) loss of the third quarter of 2025.
The figures matter to US readers because Pemex owns the Deer Park refinery in Texas, sells its bonds to dollar investors and carries a financial debt of US$77.6 billion. Peso amounts here are converted at the Banxico FIX rate of 18.7962 per US dollar set on Friday 30 October, and more background sits in the Mexico news and analysis.
How the Loss Compares
Against the third quarter of 2025 the loss narrowed by 82.4%, from 61,242 million pesos (US$3.3 billion) to 10,795 million pesos (US$574 million), Expansión reported. Over the first nine months of 2026 the loss was 38,763 million pesos (US$2.1 billion), 13.9% below the 45,055 million pesos (US$2.4 billion) lost in the same period of 2025, El CEO reported.
The second quarter had ended in profit, with Pemex’s own July release showing net income of 18.0 billion pesos on total sales of 510.4 billion pesos (about US$27 billion), the highest in 14 quarters. Third-quarter sales of 486,779 million pesos (US$25.9 billion) came in below that peak, although they were 28.5% above the level of a year earlier.
Sales and EBITDA Climb
Domestic sales rose 36% on gasoline, diesel and jet fuel, while export sales rose 14.9% on higher prices for refined products sold by Deer Park, the Texas refinery that Pemex owns. Cost of sales fell 2.3% from a year earlier, Expansión reported, so the extra revenue was not eaten by higher production costs.
EBITDA, which stands for earnings before interest, taxes, depreciation and amortization and works as a measure of cash operating profit, rose 112.2% to 123,800 million pesos (US$6.6 billion) from 58,359 million pesos (US$3.1 billion), according to Expansión. That means operations earned more, while financial costs and an exchange-rate loss pushed the quarter into the red.
Peso Moves and Derivatives Hurt
Pemex booked an exchange-rate loss of 16,391 million pesos (about US$870 million), against a gain of 33,384 million pesos (US$1.8 billion) a year earlier, as the peso weakened from 17.47 per dollar at the end of June to 17.84 at the end of September. Costs on financial derivatives reached about 8,900 million pesos (about US$470 million), more than triple the 2,800 million pesos (about US$150 million) of the third quarter of 2025.
Pemex linked the derivatives cost mainly to changes in the fair value of cross-currency swaps, which are contracts that exchange payments in two currencies, and Expansión added that crude oil options and currency options also played a part. El CEO, citing the report filed with the Mexican Stock Exchange, listed higher product purchases, a higher charge for taxes and duties, derivatives costs and the currency loss as the main drags, offset by higher sales and smaller write-downs of fixed assets.
Debt and Supplier Bills
Financial debt ended September at US$77.6 billion, which is 8.9% below the US$85.2 billion of the end of 2025 but slightly above the US$77.5 billion that Pemex’s July release gave for 30 June. El CEO put the figure for a year earlier at US$100.3 billion, a fall of 22.6% in twelve months.
Debt owed to suppliers and contractors fell 5.1% to 414,218 million pesos (US$22.0 billion) from 436,704 million pesos (US$23.2 billion) at the end of 2025, and Expansión reported that payments to them so far exceed 370,000 million pesos (about US$19.7 billion). Analysts cited by El CEO credit the lower financial debt mainly to support from the federal finance ministry rather than to better operations, a topic examined in Mexico’s US$20 Billion Pemex Debt Cut, and Who Paid.
What It Means for You
For US bondholders and credit analysts, the quarter shows a state company that earns more from its operations, with EBITDA more than doubled, but still loses money on exchange rates and derivatives. A financial debt of US$77.6 billion, roughly flat since June, keeps the credit of Pemex and the support of the Mexican government in focus, as laid out in the explainer on Pemex and its debt.
For US fuel buyers, the Deer Park refinery in Texas is part of the story because higher refined-product prices there lifted Pemex export sales by 14.9%. For importers and investors in Mexico, the FIX of 18.7962 on 30 October is 5.4% more pesos per dollar than the 17.84 end-of-September rate, which makes Mexican costs cheaper in dollars while raising the peso cost of Pemex’s dollar debt.
What Is Not Known
Pemex’s investor pages redirected to a contingency site without the third-quarter report on 31 October, so the third-quarter figures here rest on Expansión and El CEO, which read it. Pemex’s own July release is the source for the second-quarter comparison.
The next quarterly report will show whether the weaker peso, now at 18.7962 per dollar, brings another exchange-rate loss. Neither outlet gave a third-quarter production figure, so it is not known whether the higher sales came from more barrels or from higher prices.
Frequently Asked Questions
How much did Pemex lose in the third quarter of 2026?
Pemex lost 10,795 million pesos, about US$574 million at the Banxico FIX rate of 18.7962 per dollar on 30 October. That is 82.4% less than the loss of the third quarter of 2025.
How much debt does Pemex have?
Pemex’s financial debt was US$77.6 billion at the end of September 2026, according to Expansión. Debt owed to suppliers and contractors was 414,218 million pesos, or about US$22.0 billion.
Why did Pemex lose money if its sales rose?
Sales rose 28.5%, but an exchange-rate loss of 16,391 million pesos (about US$870 million) and higher derivative costs outweighed the gain. The peso weakened from 17.47 to 17.84 per dollar between June and September.
Is Pemex profitable in 2026?
Not so far, because the first nine months of 2026 added up to a loss of 38,763 million pesos (about US$2.1 billion). That compares with a loss of 45,055 million pesos (about US$2.4 billion) in the same months of 2025.
Who runs Pemex?
Juan Carlos Carpio Fragoso has been Pemex’s director general since May 2026, when he replaced Víctor Rodríguez Padilla. El CEO quoted him telling investors that the company is moving in the right direction.
Sources: Pemex second-quarter 2026 release, Comunicado 69/2026, Mexican Stock Exchange filing, 31 July 2026; Banco de México, FIX exchange rate, 30 October 2026; Expansión, 30 October 2026; El CEO, 30 October 2026; Expansión, 15 May 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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