Bank of America predicts Mexico's Pemex will need state support through 2027

Bank of America (BofA) has forecast that Pemex will continue requiring government backing in 2027, the year Sheinbaum's administration projects the oil company will face its financial obligations alone.

State-owned Pemex's financial self-sufficiency is achievable if its strategic plan functions and debt management concludes, though the company will continue needing government support until then, said Roberto Núñez, BofA's managing director for Capital Markets in Mexico.

"We believe that in 2027 an important contribution can still come, let's see how it evolves and at that moment we'd like to see Pemex going to the market to finance themselves alone without Federal Government support," Núñez commented.

President Claudia Sheinbaum's administration has prepared support for Pemex totalling $50bn through pre-capitalised note issuances, bond buybacks, budget injections, a new fiscal regime, an investment fund plus an operational plan including private company alliances.

Some financial sector members doubt whether Pemex will achieve this objective, including Moody's, which has signalled it does not expect Pemex to dispense with government support.

At issue is that Pemex carries the largest financial debt amongst world oil companies at $100.3bn whilst production stands at four-decade lows.