PEMEX Cuts Losses by 11%

Falling crude prices and internal struggles impacted PEMEX’s results during the last quarter of 2022. From October to December of last year, the state-owned company reported a net loss of MX$172.5 billion (US$9.3 billion). 

Despite the millionaire losses, the blow was mitigated by 11% when compared to the same period of 2021. “Next year (2023) will bring important challenges to consolidate our results. We are proud to announce that we are reporting good results, more production, more income and a reduced debt against last year,” said Octavio Romero, CEO, PEMEX.

Carlos Cortez, Finance Director, PEMEX, mentioned that the company’s costs increased by 55%. In addition, during this period, a deterioration in fixed assets of MX$145.7 billion (US$80.8 billion) was registered in comparison to the previous year (US$2.1 billion). In 4Q22, total income for sales and services increased 16% compared to the same period last year. 

In 2022, PEMEX reported a net profit of MX$23.5 billion (US$1.3 billion). This in part was thanks to the direct support of the current government and a lower tax burden. The NOC closed last year with a financial debt of US$107.7 billion, 7% less than in 2021. 

Cortez said that for the next debt payments, the company is relying on the federal government’s support, as well as financial institutions. “The strategy is divided in three steps: an organized return to the market, seeking credit refinancing with the main banks we have a relationship and, in case it is necessary, the support of the government,” added Cortez. To cover pending payments for about US$10 billion this year, the company is already taking actions like emitting bonuses and requesting financing from different banks. 

PEMEX directives assure that the recent acquisition of the Deer Park refinery in Texas has substantially increased the company’s crude processing capacity. In 2022, the refinery processed 276Mb/d, 83% turned into high value products such as gasoline, diesel and jet fuel with a net profit of US$956 million. About the recent fire at the refinery, Ángel Cid, CEO, PEMEX, Exploración y Producción, mentioned that there were no injured people and that the refinery center is partially operating. Regarding the explosion in Minatitlán, Veracruz, that resulted in the deaths of two workers, Cid said that the appropriate measures have already been taken to avoid these accidents from happening. In 2022, the company accounted for 37 security and six environmental risks.