Mexican state oil giant Pemex reported a net loss of $8.2 billion in the third quarter, largely driven by a weakened peso despite backing from the new government. Pemex, primarily operating in U.S. dollars, has been impacted by a 13% depreciation in the peso over the past year, resulting in a $4.5 billion loss in Q3, as per a filing with the Mexican stock exchange.
From July to September, Pemex generated 426 billion pesos in revenue, an 8% decline year-on-year due to reduced crude oil exports. Pemex has focused on refining over exports, yet it struggles to decrease foreign fuel imports, with gasoline and diesel imports continuing to exceed local production. In Q3, Pemex processed 962,000 barrels per day (bpd) of crude, a 25% increase compared to the same period last year. Refining output yielded 278,000 bpd of gasoline and 186,000 bpd of diesel.
Pemex’s financial debt dropped to $97.3 billion, down $9 billion since the end of 2023. New president Claudia Sheinbaum, inaugurated this month, has pledged ongoing government support for the heavily indebted company. Pemex received 145 billion pesos in state aid during Q3, and some advisors suggest Sheinbaum may consider private partnerships to enhance production, despite Pemex’s $97.3 billion debt.
Pemex’s crude and condensate production dropped 6% year-on-year to 1.76 million bpd, underscoring a longstanding decline from its peak of 3.4 million bpd two decades ago. A toxic gas release at Pemex’s Deer Park refinery in Texas earlier this month, which resulted in two fatalities and multiple injuries, could lead to substantial legal costs. Executives indicated investigations are underway but downplayed operational disruptions.
Pemex also adjusted its Q2 loss upward by 7% to 273.3 billion pesos, adding nearly $1 billion to prior losses due to exchange rate variations.
