PEMEX Sees Profits Soar in Second Quarter

National oil company PEMEX registered strong profits in 2Q22. It owes these results to soaring oil prices and strong export levels, which stood at 267Mb/d, a figure “not seen since November 1998,” according to the company.

PEMEX recorded a net attributable profit of US$65.3 billion, which is equivalent to multiplying its 2Q21 result over nine times, according to the company's quarterly report.

Octavio Romero, Director General, PEMEX said that 2Q22’s production was up with an average of 1.77MMb/d, 1.1 percent more year-over-year. Recent oil production rebounded slightly after hitting its lowest level since the 70s in April 2022 with 1.5MMb/d, according to data from CNH.

Romero indicated that the incorporation of production new fields would allow PEMEX to reach a yearly average of 389Mb/d, significantly more than in 2021. Deer Park, purchased from Shell in May 2021, generated a profit of US$551 million, turning the move profitable just six months further down the line.

In 1H22, the company recorded a net profit of US$125.4 billion, a positive result compared to losses of US$11.4 billion registered during the same period of 2021.

PEMEX closed June with a debt that had shrunk 4 percent. In the report sent to the stock market, Romero highlighted that for the second consecutive quarter, the company obtained profits. Higher oil prices have historically not always led to great results. Romero stressed that the state company is now benefitting from an improved market outlook.

PEMEX remains the world’s most indebted oil company. As a focal point of President López Obrador’s energy security policy, the NOC has received strong government support in the form of liquidity and lower tax burdens. Boosted by skyrocketing oil prices, PEMEX is now looking to further shrink its debt and pay off its suppliers.