Petroleos Mexicanos (PEMEX) H2 2024 earnings summary

Executive summary

• 2024 results reflect continued government support, strategic debt management, and a focus on ESG initiatives, with operational and productivity challenges addressed through new strategies and early positive results.

• Crude oil and gas production declined year-over-year, while refining and petrochemical output increased, supported by higher gasoline prices and refined product exports.

• Net loss for 2024 was significantly impacted by non-cash impairment and exchange rate fluctuations.

• Corporate unification, management simplification, and strengthened ESG strategies are underway to improve efficiency, sustainability, and stakeholder trust.

• New national energy policy and legal reforms aim to enhance sustainability, competitiveness, and social/environmental responsibility.

Financial highlights

• 2024 revenues decreased by 2.4% year-over-year due to lower crude oil export volumes, with total sales at MXN 1,678 billion and cost of sales at MXN 1,442 billion.

• EBITDA for 2024 was MXN 249 billion, with an EBITDA margin of 15%, down from 21% in 2023.

• Net loss for 2024 was MXN 304 billion, mainly due to impairment and FX losses.

• Debt balance decreased by $8.4 billion to $97.6 billion by year-end 2024.

• Payments to suppliers and contractors in 2024 totaled MXN 404 billion.

Outlook and guidance

• 2025 capital expenditure budget set at MXN 210 billion, with focus on strategic partnerships, mixed hydrocarbon projects, and ongoing ESG integration.

• Federal government support continues, including a MXN 136 billion capital injection for debt amortization.

• Net zero indebtedness goal maintained, with ongoing debt management and refinancing strategies.

• New fiscal regime (Oil Duty for Welfare) to provide a more stable and competitive tax framework.

• Crude oil and crack spread hedging strategies continue for 2025.