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Reuters
30-04-2025
- Business
- Reuters
Mexico's Pemex swings to $2 billion loss as production, sales slump
Summary Companies Decline of mature wells, delays in new well completions cited in production decline Pemex says it's working to reach 1.8 million bpd production goal by year-end Revenues dip 2.5% on lower crude sales Cash-strapped company's financial debt rises past $101 million Production remains under government's goal of 1.8 million bpd MEXICO CITY, April 30 (Reuters) - Pemex, Mexico's heavily indebted state energy company, reported an 11.3% drop in first-quarter production of crude and condensate on Wednesday as falling sales and foreign-exchange losses contributed to a 43.3 billion peso ($2.12 billion) net loss. In a filing with Mexico's stock exchange, Pemex, one of Mexico's largest companies, attributed the production slump to the decline of mature wells and delays in new well completions. During the first quarter, Pemex and its partners pumped 1.62 million barrels per day (bpd) of crude oil and condensate. The company processed 936,000 bpd in its local refineries, down 5% compared to the year-ago period. Mexican President Claudia Sheinbaum has pledged to raise production to 1.8 million bpd, although older fields, particularly in the Gulf of Mexico, are being depleted and more recent discoveries have failed to compensate. On a call with analysts, Pemex's corporate planning chief, Jorge Alberto Aguilar, said the company was working to reach the 1.8-million-bpd goal by the end of the year and maintain it at that level. Sheinbaum, who will govern until 2030, has said domestic crude production will ensure Mexico can produce the gasoline it needs and end its dependence on motor-fuel imports. Production has been falling for several months. Pemex has not been within the government's production target since March 2024, when it pumped 1.81 million bpd. A series of contracts for joint ventures with private companies is being prepared to increase pumping, they added, noting that Pemex will have at least a 40% stake. Revenue during the January-to-March period fell 2.5% to 395.59 billion pesos, mainly due to lower crude oil sales volumes, Pemex said. Pemex said foreign-exchange losses and rising costs played roles in its swing to a net loss. In the quarter, its refining unit yielded 305,000 bpd of gasoline and 171,000 bpd of diesel. PEMEX AIMS TO REDUCE DEBT BALANCE Pemex said its financial debt for the three-month period totaled $101.1 billion, up from the $97.6 billion reported in the fourth quarter of 2024. Already the world's most indebted energy company, Pemex has received billions of pesos in government support. The company said it received 80 billion pesos in government support in the first quarter. The funds were mainly used to pay down debt. Pemex said its goal "is to reduce the financial debt balance over the course of the year, resulting in a lower balance at the end of 2025 versus the end of 2024." The company said that 136 billion pesos in transfers from the government were approved for amortizations. Pemex also reported a decline in drilling activity, completing during the first quarter 12 development wells and five exploratory wells, down from 16 and eight wells, respectively, in the same period in 2024. Executives of the state-owned giant did not mention on Wednesday whether the drop in well drilling levels had any relation to the debts to suppliers, which reached $19.9 billion at the quarter's close. In late 2023, local industry groups said Pemex's ballooning debt to its oil service providers and private oil and gas producers was threatening hydrocarbon production and the survival of companies. Executives said that Pemex will continue to make payments to suppliers and that it is working with the Finance Ministry to seek ways to manage financial and commercial liabilities. ($1 = 20.4604 pesos at end-March)
Yahoo
28-02-2025
- Business
- Yahoo
Pemex reports $9bn loss in Q4 due to oil production drops
Mexican state oil company Pemex reported a $9bn loss for the fourth quarter of 2024, marking a stark contrast to the profit recorded in the previous year. The loss was attributed to increased sales costs, reduced fixed asset values and currency exchange losses, highlighting the company's challenging situation. Production during the quarter continued its downward trend, with crude and condensate output reaching 1.65 million barrels per day (bpd), a nearly 10% decline from the previous year. Pemex corporate planning chief Jorge Alberto Aguilar acknowledged the operational challenges, working capital issues and falling output, emphasising the need for a recovery strategy due to "serious" budget restrictions, as reported by Reuters. Pemex's crude output has reached historic lows, partly due to its reluctance to engage in equity partnerships and the ageing of its offshore fields, especially in the southern Gulf of Mexico. Declining output from the Maloob and Zaap offshore fields, as well as the Quesqui onshore field, were noted by company executives. Despite these challenges, Pemex's revenue for the period rose to 436.6bn pesos, a 3% increase from the same quarter last year. The company's tax bill decreased to 45.7bn pesos, down from 53.9bn pesos a year earlier. Earnings before interest, taxes, depreciation and amortisation totalled 14.6bn pesos. Pemex's financial debt remained substantial, ending the year at $97.6bn. Debt owed to service providers as of December totalled $506.2bn pesos. Pemex's refineries processed 786,000bpd of crude oil in the fourth quarter, aligning with the government's priority to reduce reliance on fuel imports. The Mexican Government provided 156.5bn pesos in support in 2024, with 96% directed towards debt repayment. Additionally, the government has announced plans to transfer 136bn pesos to Pemex in 2025 to support its debt and loan repayments. This move is part of a budget proposal aimed at addressing the company's financial liabilities, which include nearly $9bn in bond payments due in 2025. "Pemex reports $9bn loss in Q4 due to oil production drops" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
