Mexican state oil company Pemex reported a $9bn loss for the fourth quarter of 2024, marking a stark contrast to the profit recorded in the previous year.
The loss was attributed to increased sales costs, reduced fixed asset values and currency exchange losses, highlighting the company’s challenging situation.
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Production during the quarter continued its downward trend, with crude and condensate output reaching 1.65 million barrels per day (bpd), a nearly 10% decline from the previous year.
Pemex corporate planning chief Jorge Alberto Aguilar acknowledged the operational challenges, working capital issues and falling output, emphasising the need for a recovery strategy due to “serious” budget restrictions, as reported by Reuters.
Pemex’s crude output has reached historic lows, partly due to its reluctance to engage in equity partnerships and the ageing of its offshore fields, especially in the southern Gulf of Mexico.
Declining output from the Maloob and Zaap offshore fields, as well as the Quesqui onshore field, were noted by company executives.
Despite these challenges, Pemex’s revenue for the period rose to 436.6bn pesos, a 3% increase from the same quarter last year.
The company’s tax bill decreased to 45.7bn pesos, down from 53.9bn pesos a year earlier.
Earnings before interest, taxes, depreciation and amortisation totalled 14.6bn pesos. Pemex’s financial debt remained substantial, ending the year at $97.6bn.
Debt owed to service providers as of December totalled $506.2bn pesos.
Pemex’s refineries processed 786,000bpd of crude oil in the fourth quarter, aligning with the government’s priority to reduce reliance on fuel imports.
The Mexican Government provided 156.5bn pesos in support in 2024, with 96% directed towards debt repayment.
Additionally, the government has announced plans to transfer 136bn pesos to Pemex in 2025 to support its debt and loan repayments.
This move is part of a budget proposal aimed at addressing the company’s financial liabilities, which include nearly $9bn in bond payments due in 2025.
