The Strategist

Oil major Pemex slashes quarterly net profit by 12 times

04/29/2024 - 03:27

The first quarter of 2024 saw a considerable reduction in net profit for Petroleos Mexicanos (Pemex), the state-owned oil firm in Mexico, as a result of fewer sales, fluctuating foreign exchange rates, and increased costs.

Matthew Rutledge
Matthew Rutledge
A corporate statement reads that Pemex's net profit for the months of January through March was 4.7 billion Mexican pesos ($274 million), down from 56.7 billion pesos ($3.3 billion) in the same period last year.

Lower domestic and international sales as a result of reduced product prices caused revenue to drop by 3% to 405.9 billion pesos ($23.8 billion), although operating profit increased by 4.1% to 36.4 billion pesos ($2.1 billion). EBITDA amounted to 92.4 billion pesos ($5.4 billion).

Natural gas production decreased 4.3% to 4.78 billion cubic feet per day, while oil and condensate production fell by 2.8% to 1.82 million bpd. Oil exports dropped 11% to 803,000 barrels per day as Pemex refineries raised output. 

In the first quarter of 2023, Pemex refined 985 thousand barrels, up from 835 thousand barrels, the business reports. Production of diesel increased by 45% to 191 thousand bpd, while that of gasoline increased by 16% to 314 thousand bpd.

Pemex lowered its debt to $101.5 billion at the end of March, saving almost $4.6 billion.