PEMEX’s Supplier Debt Reaches 13-Year High

PEMEX’s debt to suppliers reached MX$506 billion in 2024, marking a 37.4% increase from the MX$368.3 billion recorded at the end of 2023, according to the Mexican Institute for Competitiveness (IMCO). This is the highest level of supplier debt for the state-owned oil company in 13 years.

The delayed payments have led to operational disruptions in Mexico’s oil-producing states, with several suppliers halting activities and some considering shutting down operations entirely. Business groups and service providers have raised concerns over the company’s payment delays, which have put financial strain on firms dependent on PEMEX contracts.

Meanwhile, PEMEX’s production has continued to decline. From January to December 2024, the company extracted an average of 1.485MMb/d, a 6.5% drop from the 1.588MMb/d reported in 2023. Natural gas production also fell by 8%, from an average of 4.967Bcf/din 2023 to 4.572Bcf/d in 2024.

Investment levels have risen slightly but remain below 2022 figures. In 2024, PEMEX invested MX$370.6 billion, representing a 3.8% increase compared to 2023. However, this amount was MX$96.7 billion lower than the company’s investment in 2022. As PEMEX struggles with growing financial obligations and declining production, its ability to maintain operations and meet outstanding payments to suppliers remains uncertain.