LatAmOil: Pemex profits in Q4 2023 even as debts to contractors rise

Mexico’s national oil company (NOC) Pemex recorded a profit of MXP106.9bn ($6.3bn) in the last quarter of 2023, reversing earlier losses. However, it also continues to grapple with the large debt burden that has made it the world’s most indebted oil company.

As of the end of last year, Pemex’s financial debts totalled $106.1bn, with debt to service providers reaching a record high of MXP359bn ($21.3bn), 27.5% up on the previous year. Although the NOC did pay MXP413.9bn ($24.52bn) to providers throughout 2023, its debt obligations to service providers remain a significant challenge.

The company also received MXP127.7bn ($7.57bn) in financial support from the government last year. A portion of this sum was allocated to the Olmeca refinery in Tabasco State, and the remainder was used to pay debts.

Pemex also reported revenues of MXP425.5bn ($25.21bn) for the final quarter of 2023. Its crude oil and gas condensate production reached 1.86mn barrels per day (bpd) during the same period, with 566,300 bpd coming from new fields. Local refineries processed 731,000 bpd.