State-owned Petroleos Mexicanos (Pemex) reported lower year-over-year oil and gas production and dramatically reduced net income in the first quarter but still managed to reduce its debt.

First-quarter income came in at $281 million in the first quarter, down 91% compared to $3.1 billion year-over-year. Income fell due to higher expenses across the board even as the average price of the Mexican Export Blend was $71.91 per bbl in first-quarter 2024, up 9.1% compared to first-quarter 2023, Pemex said in the release.

Pemex oil production averaged 1.82 MMbbl/d in first-quarter 2024, down 3% compared to 1.87 MMbbl/d in first-quarter 2023. Gas production averaged 3.8 Bcf/d in the first quarter, down 8% compared to 4.1 Bcf/d year-over-year.

“The change is explained by the decline in the Zaap, Xanab, Ayatsil, Ku and Quesqui fields, which is being mitigated by increased maintenance of base production and drilling of new field strategy wells,” Pemex reported in its April 26 earnings.

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Despite the negative operational and financial results Pemex, the most indebted company in the world, did make strides to reduce its total debt.

Pemex’s total debt reached $101.5 billion to end the first quarter, down 5% compared to $107.4 billion at the end of first-quarter 2023.

The lower debt “was due to support and coordination with the federal government, despite criticism,” Pemex’s acting CFO Carlos Cortez said during the webcast.