Pemex posts first quarterly profit in a year despite decline in production

Mexico’s state-owned lipid institution Pemex reported its archetypal quarterly nett successful a year, booking a nett net of 59.52 cardinal pesos (US $3.17 billion) during the 2nd 4th contempt a diminution successful revenues.

The emergence successful Pemex’s fortunes was helped mostly by the peso’s favorable speech rate, but the institution — the world’s astir indebted vigor steadfast — inactive faces sizeable challenges.

Presenta Pemex sus resultados del segundo trimestre de 2025

Comunicado Nacional: https://t.co/5tApaSQjRD#Pemex #PorElRescateDeLaSoberanía pic.twitter.com/M8og0KWUZ6

— Petróleos Mexicanos (@Pemex) July 28, 2025

Crude and condensate accumulation continued to autumn — dipping 8.6% compared to past year’s 2nd 4th — arsenic good arsenic earthy state production, which was down 3.7% compared to Q2 2024. Pemex besides reported a fiscal indebtedness of US $98.8 cardinal astatine the extremity of the 4th and revealed that it owes providers US $22.79 billion. 

Still, arsenic the peso roseate against the dollar, the affirmative currency effects allowed Pemex to flooded a driblet successful revenues. 

Pemex disclosed successful regulatory filings that second-quarter revenues declined 4.4% to 391.62 cardinal pesos (US $20.9 billion), citing reduced crude lipid volumes and little prices for refined products, including gasoline and diesel.

Lower gasoline production besides prompted a emergence successful U.S. imports during the quarter, contributing to sinking revenues and fears that Mexico could go a nett lipid importer owed to a accordant diminution successful production, underinvestment and mounting debt.

Even arsenic Pemex faces a fiscal chokehold, the unexpected quarterly net study not lone gives the institution much clip to breathe, but besides provides impetus to a caller authorities program to prop up the beleaguered lipid giant. 

The Finance Ministry announced past week that it would motorboat a caller dollar-denominated indebtedness issue, involving “Pre-Capitalized Notes,” a signifier of financing designed to fortify Pemex’s equilibrium expanse without a nonstop authorities guarantee. 

Mexico’s state accumulation falls abbreviated arsenic US imports surge to grounds levels

Following past week’s announcement, credit standing bureau Fitch placed Pemex connected “rating ticker positive,” describing the transaction arsenic “credit positive” portion lauding Mexico’s “willingness and quality to supply important support” to the lipid company.

Even so, the online quality level Oil Price reported that “[Pemex’s] fiscal illustration and net outlook stay persistently weak.” And according to Fitch, the lipid institution inactive faces “negative funds from operations, declining nett margins connected the backmost of little accumulation and lipid prices, arsenic good arsenic unrelenting losses successful its downstream business.”  

After the quarterly results were published, institution executives told investors Pemex was intent connected expanding crude lipid accumulation to the government’s extremity of 1.8 cardinal barrels per day, quality bureau Reuters reported.

The executives said alleged mixed contracts would beryllium offered to backstage companies, and Pemex would proceed to trust connected authorities support. The institution received 80 cardinal pesos (US $4.26 billion) successful authorities enactment successful the archetypal quarter. The funds were chiefly utilized to wage down debt.

In this year’s archetypal quarter, Pemex reported a nett nonaccomplishment of US $2.3 billion. Last year’s losses amounted to astir US $30 billion, Reuters reported, with fourth-quarter losses unsocial coming successful astatine US $9 billion.

With reports from Reuters, Animal Político, El Financiero and Oil Price