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.
RELATED
Pemex to Remain Fiscally Challenged for Mexico’s Next President
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.
Recommended Reading
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
ProPetro Reports Material Weakness in Financial Reporting Controls
2024-03-14 - ProPetro identified a material weakness in internal controls over financial reporting, the oilfield services firm said in a filing.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.
EQT Declares Quarterly Dividend
2024-04-18 - EQT Corp.’s dividend is payable June 1 to shareholders of record by May 8.