Petroleos Mexicanos (Pemex) further reduced its long-term debt during the second quarter 2024, which now sits just below the $100 billion mark. But the company continues to struggle to reverse production declines.

State-owned Pemex reported total long-term debt of $99.4 billion at the end of the second quarter 2024, down $2.1 billion compared to the end of the first quarter 2024, Carlos Cortez, the company’s corporate finance director said during the company’s second quarter earnings webcast on July 26.

Pemex has reduced its debt by $6.7 billion since the end of 2023, when it stood at $106.1 billion.

The debt reduction efforts have been possible due to coordination between Mexico’s Ministry of Finance and Public Credit, which addresses Pemex’ financial needs, coupled with capital contributions from the Federal Government, Cortez said.

Pemex reported a net loss of $13.9 billion in the second quarter  compared to a profit of $1.5 billion in the second-quarter 2023. The difference was mainly due to large foreign exchange losses year-over-year (yoy), Pemex said.

Downward production trend

Pemex averaged 2.52 MMboe/d in second-quarter 2024, down 7.2% yoy from 2.71 MMboe/d in second-quarter 2023.

Lower production was attributed several factors, including natural declines in some fields, including Maloob and Zaap, Angel Cid, Pemex’s E&P general director said during the webcast. Additionally, the company saw delayed installations at some offshore infrastructure and unusual weather conditions.

Total liquids production averaged 1.78 MMbbl/d in the quarter, down about 6.3% yoy from 1.90 MMbbl/d in second-quarter 2023.

Pemex’ liquids production is on track to average 1.85 MMbbl/d in 2024, which would represent a 9% increase from 1.70 MMbbl/d in 2019, Cid said. In 2019, Pemex implemented a new strategy to boost production through a focus on incorporating volumes from new developments and in particular mature fields.

Pemex’s natural gas production averaged 3.73 Bcf/d in the second quarter 2024 down from 4.12 Bcf/d yoy. In the second quarter, 51% of Pemex’s gas production was associated with oil production compared to around 53% in second-quarter 2023.

Comments