By Mexican state oil company Petróleos Mexicanos (Pemex) reported a net profit of 106.9 billion Mexican pesos ($6.3 billion) for the October-December period, marking a significant turnaround from the net loss experienced in the same quarter the previous year.
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Factors Contributing to the Profit
- Tax Benefits: The company benefited from a tax credit of 6.7 billion pesos, as the federal government exempted Pemex from profit-sharing duties.
- Asset Impairments Reversal: This, coupled with the reversal of asset impairments, helped offset lower sales figures.
Financial Performance Overview
- Sales Decline: Sales fell by 17% to 425.5 billion pesos due to reduced crude oil and products prices.
- Operating Profit: Pemex reported an operating profit of 75.5 billion pesos, a stark contrast to the operating loss of 112.5 billion pesos in the same quarter the previous year.
Production Updates
- Crude Oil Production: Crude oil and condensates production saw a 2.8% increase, reaching 1.86 million barrels a day.
- Natural Gas Production: Natural gas production also rose by 1% to 4.88 billion cubic feet a day.
Refining Operations
- Refining Activity: Pemex refined 13% less crude oil during the quarter at 731,000 barrels a day, excluding operations at Deer Park in Texas.
- Improvements: Despite the initial drop, refining activities picked up towards the end of the quarter, with production reaching 950,000 barrels a day in January.
Future Prospects
- Government Support: CEO Octavio Romero Oropeza anticipates continued federal government support, with the 2024 budget allocating 145 billion pesos for Pemex.
- Debt Situation: Pemex’s debt stood at $106.1 billion by the end of 2023, with debt maturities totaling around $8.8 billion in 2024.
These financial results reflect Pemex’s efforts to navigate through challenging market conditions while aiming for sustainable growth and operational efficiency.
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