PEMEX Reports on Financial Performance, Key Challenges
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PEMEX Reports on Financial Performance, Key Challenges

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Mon, 05/22/2023 - 11:38

PEMEX announced that it submitted its 2022 Annual Report to the National Banking and Securities Commission and the Mexican Stock Exchange. The NOC filed the F-20 Form with the US Securities and Exchange Commission, further solidifying its commitment to transparency and compliance.

According to the recently released financial data, PEMEX reported positive financial performance in FY22. The company achieved a net profit of MX$99.998 billion. In 1Q23, PEMEX continued its positive momentum reporting a net profit of MX$57 billion.

The company reported crude oil production of 1.87MMb/d. Notably, 543Mb/d of this production can be attributed to new developments. The NOC also highlighted the company's ongoing commitment to exploration and growth. The National Refining System, a key component of PEMEX's operations, processed an average of 835Mb/d during the same period.

In addition to the financial and operational achievements, PEMEX also announced the creation of the PEMEX Sustainability Committee of the Board of Directors in March. This committee underscores the company's commitment to sustainable practices and responsible energy production. By establishing it, PEMEX aims to integrate ESG considerations into its decision-making processes and contribute to a more sustainable future.

As reported by Energía a Debate, PEMEX reported significant challenges in its recent F-20 Form submission. The company acknowledges that high levels of debt, cybersecurity concerns and a decline in oil reserves are among the key hurdles it currently faces.

By the end of 2022, PEMEX’s debt reached US$107.7 billion, with 38.7% of this amount due within the next three years. The NOC warned that its debt could increase in light of refinancing strategies and possible devaluation of the Mexican peso, further straining liquidity.

PEMEX further acknowledged that obtaining credit access could become more challenging, thereby complicating future investment in additional projects. The company highlighted that its tax burden has exerted pressure on cash flow throughout the previous year, leading to an increase in debt and straining investments. Moreover, it recognized the possibility that additional federal financial support may not be available in the forthcoming years.

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