Petroleos Mexicanos (PEMEX) Q3 2024 earnings summary

Executive summary

• The new administration prioritizes energy sovereignty, operational efficiency, and environmental sustainability, with a focus on sustainable development and just transition aligned with the National Energy Plan 2024-2030.

• Legal reforms will transform the company into a state public company, emphasizing efficiency, profitability, social benefit, and environmental care.

• The business plan aims to maintain hydrocarbon production, strengthen reserves, and increase private participation to share risks and technology.

• Strategic priorities include cost reduction, a roadmap toward carbon neutrality, and major leadership changes, including a new CEO.

• A new business plan aligned with the National Energy Plan will be presented soon.

Financial highlights

• Total revenues/sales for Q3 2024 were MXN 426.1 billion, down 8% year-over-year, mainly due to lower crude oil export volumes.

• Net loss for Q3 2024 was MXN 161.5 billion, impacted by a MXN 34.3 billion impairment and MXN 130 billion exchange loss.

• EBITDA reached MXN 85 billion, with a margin of 20%, similar to Q3 2023.

• Cost of sales decreased by 6% year-over-year, aided by lower product purchases and a fiscal stimulus on hydrocarbon extraction duty.

• Total financial debt as of September 30, 2024, was below $100 billion, continuing a downward trend.

Outlook and guidance

• The roadmap to 2030 targets maintaining liquid hydrocarbon production at 1.8 MMbd and increasing national gas production to 4,500 MMcfd.

• Continued government support and budgetary backing for 2025 are expected.

• Zero net indebtedness remains a key goal, with liability management strategies under review.

• New tax regime and business plan to be defined in the first half of 2025.

• Focus on increasing investment in exploration, production, and clean energy projects.