PEMEX’s Export Value Increases 59 Percent in 1H22

Mexico’s state oil company PEMEX gained better financial results from exporting crude in the first half of the year due to the increase in oil prices at the international level, according to official reports and industry analysts. Nevertheless, this trend is not expected to continue throughout the remainder of 2022.

According to the company, the total value of exports of its products such as oil, petroleum products and gas reached US$19.65 billion in 1H22, an increase of 59 percent compared to US$12.32 billion obtained in the same period last year.

In June alone, the value of the exports of the products stood at US$3.78 billion, which represents an increase of 53.6 percent compared to the same month in 2021.

“Due to the high oil prices, the government announced a few months ago that it would change the strategy for PEMEX and go from producing [fuel products] to exporting, with the aim of obtaining higher income from the price of oil. Then, the strategy changed: the oil load to the six refineries for production was eliminated and it was decided to focus on exports instead,” said Arturo Carranza, Project Manager Energy, Akza Advisory to La Jornada.

This strategy is reflected in the income for the country. According to the Ministry of Finance and Public Credit (SHCP), at the end of the year’s first half, the oil revenues obtained through PEMEX registered an increase of 24.4 percent compared to the same period last year.

The average export price in the sixth month of the year was US$108.86/b. On average so far this year, the price stood at US$97.81/b. Figures from the NOC show that the value of crude oil exports from January to June amounted to US$16.75 billion, while a year ago that figure was US$10.89 billion, which entailed an increase of 53.6 percent.

This June, the value of crude oil exports amounted to US$3.36 billion, an increase of 51 percent compared to what was obtained in June 2021. However, the expectation is that these levels will fall in 2H22 amid fears of a recession, so PEMEX will now focus on producing oil and refined fuel products instead.

“Of course this is going to benefit PEMEX, but prices are expected to fall in the second half of the year. Because of the world’s economic environment, the strategy is most likely now to focus on the company producing more gasoline and leave aside the exports,” Carranza concluded.