Pemex reduces losses by 11%: 172,567 million pesos in the last quarter of 2022

The fall in the price of crude oil and the deterioration of the company affected the results of Petróleos Mexicanos during the last quarter of 2022. From October to December of last year, the oil company reported a net loss of 172,567 million pesos (about 9,374 million Dollars).

In its financial report sent this Friday to the Mexican Stock Exchange, the oil company attributes this net loss to an increase in the cost of sales and the increase in impairment, offset against the exchange gain originated by the appreciation of the peso against the dollar.

Although the oil company reports million-dollar losses, this loss is 11% less than the one it registered in the same period of 2021. “The year 2023 presents us with important challenges to consolidate our results.

We are proud to say that we are reporting good results, increased production,

Although the oil company increased its sales in the last quarter of the year, the burden of its cost of sales and its impairment impacted its financial results.

Pemex CFO Carlos Cortez reported that the cost also increased by 55%.

In addition, during this period an impairment of fixed assets of 146,700 million pesos was recorded, an increase compared to 39,500 million pesos in the same period of the previous year.

In the last quarter of the year, total revenues from sales and services increased 16%, compared to those registered in the same period last year.

In all of 2022, the state oil company reported a net profit of 23,500 million pesos, compared to a net loss of 294,532 million in 2021. "We are proud to say that we are reporting good results, higher production, higher income and lower debt compared to the previous year," Romero emphasized.

Thanks to direct support from the Government of López Obrador and a lower tax burden, the parastatal closed last year with a financial debt of 107.7 billion dollars, 7% less than in 2021.

The financial director, Cortez, commented, without offering many details, that for the next debt maturities they have the support of the federal government, as well as the support of financial institutions.

"The strategy consists of three parts, the orderly return to the markets, the refinancing of banking lines with our main relationship banks and, if necessary, support from the federal government," he said.

Faced with the need for cash to cover pending payments of some 10 billion dollars this year, the company has already undertaken some actions, from the issuance of bonds to the request for financing with different banks.

Pemex executives assured that with the recent acquisition of the Deer Park refinery in Texas, they have substantially increased the processing capacity of crude oil.

In 2022, this refinery processed 276,000 barrels per day -- 83% of which was converted into high-value products such as gasoline, diesel, and jet fuel -- and its net profit was $956 million.

Regarding the fire in this refinery, on February 23, Ángel Cid, general director of Pemex, Exploration and Production, commented that there were no injuries and that the refining center is partially operational.

Regarding the explosion in Minatitlán, Veracruz, which already resulted in the death of two workers, the director indicated that the pertinent measures will be taken so that this type of incident does not occur again.

In 2022, the company recorded 37 security and six environmental risks.

At the operational level, the production of crude oil and condensates was 1.79 million barrels per day and processing at its local refineries was more than 816,000 barrels per day.

President López Obrador has placed the oil company at the center of his strategy to achieve energy sovereignty.

The direct disbursement of resources to refinance the debt of the oil company, the purchase of Deer Park and the construction of the Dos Bocas refinery, in Tabasco, account for the impulse that the president has put since the beginning of his term in refloating Pemex and In the last stretch of his term, everything indicates that he will redouble this commitment.

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