Pemex Faces $13.9 Billion Loss as Leadership Changes Loom

Petróleos Mexicanos, commonly known as Pemex, reported a steep $13.9 billion loss this second quarter of 2024.

This downturn comes as President Andrés Manuel López Obrador’s term approaches its end.

The state-run oil giant prepares for a leadership change, making this its last report under the current administration.

Just a year ago, under Octavio Romero Oropeza’s guidance, Pemex achieved a $1.489 billion profit.

This year’s significant loss stemmed from multiple factors. Sales decreased, financial instrument performance dropped, and sales costs rose.

Yet, some relief emerged from lower asset depreciation and reduced taxes. Pemex’s total sales amounted to $22.284 billion, marking a 1.1% decrease from last year.

A 16.1% fall in export sales mainly drove this decline, influenced by lower crude volumes and a stronger Mexican peso.

Conversely, domestic sales increased by 12.5%, boosted by higher prices for crude and petroleum products.

Ernesto Balcázar from Pemex’s accounting team noted major sales costs. These included a special tax on production and services that subsidiaries could not reclaim, plus increased well amortization.

As of June 30, 2024, Pemex’s financial debt reached $99.4 billion. The company projects a decrease in production to 1.8 million barrels per day by year-end, a 4% reduction from last year.

This substantial quarterly loss affects not only Pemex but also Mexico’s broader economy. It highlights the volatility of the global oil market and the challenges facing state-run enterprises during political transitions.

As Pemex adapts to upcoming changes, its strategic adjustments will be vital for future stability and growth.

More: Mexico news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error