Pemex Profit Falls 54 Percent in First Quarter of 2023

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In the first quarter of this year, state-run oil giant Petróleos Mexicanos (Pemex) recorded a profit of 56.7 billion pesos, a 54 percent drop compared to the same period in 2022, when it registered a profit of 122.5 billion pesos.

According to its financial report for January to March of this year, the drop in profit is the result of a decrease in total sales, the increase in the impairment of fixed assets and the lower income from the resale of products.

Pemex said that during the first quarter of the year, total sales decreased 19 percent compared to the same period in 2022, due to a decrease of 8.3 percent in national sales and 30.0 percent in export sales due to lower crude oil prices worldwide.

The Mexican export mix averaged a value of 66.10 dollars per barrel in the first quarter of this year.

The loss of profit in the first three months of this year is a big blow to the state-run oil giant, as it also registered a loss of 172.5 billion pesos in profits between October and December of last year.

The Pemex statement likewise said that in oil exploration and production, “the company continued its strategy of developing new fields and early incorporation of production from exploratory wells using existing infrastructure.”

However, Pemex reported that in the first three months of 2023, it produced an average of 1.8 barrels of crude oil, an increase of 6 percent compared to its crude oil production in the first quarter of 2022.

This was “mainly due to the production of new fields in Quesqui, Tupilco Profundo, Ixachi, Itta, Pokche, Mulach, Teekit, Teca and Koban, as well as Ayatsil and Maloob in the Northeastern Marine Region,” according to Pemex.

Regarding its financing strategy, the oil company said it is focused on making responsible use of its debt, seeking to optimize sources of liquidity.

During a press conference with investors and the media on Wednesday, May 3, Carlos Cortez, Pemex’s corporate director of finance, explained that the company’s liabilities have decreased thanks in large part to its decision to maintain net debt close to zero, and the support of the Mexican federal government.

As of March 31, 2023, when the exchange rate was 18.10 pesos per dollar, Pemex’s financial debt registered a balance of 1.9 trillion pesos.

“It is unlikely that direct support or transfers will be made this year, but we will continue to explore structured financing alternatives and fiscal support schemes,” said Cortez.

For his part, Octavio Romero Oropeza, CEO of Pemex, said that efforts will continue to be redoubled to create greater value for the country’s oil resources “through a more sustainable approach.”

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