During the last quarter, the administration of the state-owned company attributed the good results to the increase in income obtained from crude oil exports – which were maintained despite the presidential speech to reduce them to prioritize national consumption – and to the yields obtained from the operation of the Deer Park refinery.
The increase in their income led the federal government to reconsider the economic support and capital injections that it had announced at the beginning of the year. The administration of President López Obrador has continued to support the state company since the speech, but has left the payment of its debt amortizations to the company.
Despite this, analysts’ expectations are not entirely favorable for the company. Pemex has not been able to reduce its debt to a great extent and it has not been able to increase oil production either, although it has managed to stabilize the latter.
The oil company reported that during the second quarter the production of crude oil and condensates, Not including that of the partners, it only rose 1.1% to 1,756 million barrels per day (bpd), due to the incorporation of producing wells from new fields such as Quesqui, Itta, Pokche, Teekit, Teca.
Natural gas production, which Mexico has seen drop significantly in recent years, rose 5.3% in the period to 3.852 million cubic feet per day (pcd).
The company highlighted that in the first semester, the use of gas increased 37.3% compared to the same period in 2021.
On the process of crude oil in its refineries, Pemex said that it rose 19.6%, to 796,000 bpd, pushed by the rehabilitation projects of its facilities. Deer Parkin Texas, processed 280,000 bpd.
President Andrés Manuel López Obrador wants to make the country self-sufficient in fuel production and has opted to strengthen Pemex’s refining system. He also intends that by the end of his government, in 2024, all of Pemex’s crude production will be used for refining.
Pemex reported on Thursday that its financial debt remained unchanged in the second quarter, closing the period at $108.1 billion.
“Due to its heavy tax burden, the cash flow derived from operations in recent years has not been sufficient to fund its investment expenses and other expenses, which is why there was a significant increase in its indebtedness, as well as a decrease in its working capital”, acknowledged the oil company in its quarterly results report.
At the beginning of July, the rating agency Moody’s further plunged Pemex’s rating by reducing its credit rating to ‘B1’ from ‘Ba3’ arguing its high debt maturities and citing the high losses caused by its refining business, that reduces the profits that the company has received in recent times from its crude exports.
With information from Reuters