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Released November 10, 2022 | SUGAR LAND
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Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Pemex announced financial losses in its third-quarter report, though oil production and refining rates are higher than last year. Pemex's total sales increased by 56.5% when compared with the same period last year, with domestic and international sales increasing 69.3% and 44.5%, respectively.
Last week, the Mexican national company announced its latest financial and operational results, where it reported a net loss of MXN 52 billion (US$2.6 billion), about MXN 25 billion (US$1.2 billion) less than the same quarter last year.
According to the report, "This result is mainly explained by the cost of sales increase, the asset impairment, and the foreign exchange loss caused by the depreciation of the peso against the dollar in third-quarter 2022."
Despite the losses, Pemex also reported a nominal debt reduction of US$3.9 billion and a financial debt balance at US$105 billion. This was the result of support from the federal government of Andres Manuel Lopez Obrador and liability management operations. Throughout his mandate, President Lopez Obrador has shown total backing for Pemex by financially supporting the energy company and betting on the fossil-fuel industry.
On the upstream front, Pemex reported an oil output of 1.77 million barrels per day (BBL/d) during the third quarter (including condensates and partnerships). This is about 26,000 BBL/d higher than in third-quarter 2021. The individual monthly oil production pace for July, August and September are some of the highest in recent years, according to the company's monthly production results.
These outputs are the outcome of new field strategy wells at assets such as Ixachi, Tupilco Profundo, Itta and others. However, despite the increase in production coming from these fields, it is also important to highlight that output from the major Ku-Maloop-Zaap oil complex continues to decline. The KMZ complex provides 36% of Pemex's output, though its continuous decline will persist in impacting energy flows if new developments are not made.
Meanwhile, Pemex has shown positive results in the downstream sector, as it has been refining more. In the third quarter, the Mexican company, which has a domestic refining capacity of about 1.6 million BBL/d, processed 807,000 BBL/d. This is about 16% higher than in the same period last year.
The stronger utilization rate came from the 340,000-BBL/d Salina Cruz refinery, the 315,000-BBL/d Tula refinery, the 245,000-BBL/d Salamanca refinery, and the 240,000-BBL/d Minatitlan refinery.
Refined products output also stood 14.4% stronger in the third quarter, when compared with the same time last year. Nevertheless, fuel oil production was about 33% of the total output of refined products. Since the introduction of IMO 2020, fuel oil with sulfur contents above 0.5% cannot be used as international shipping fuel, impacting demand. It is unclear if the fuel oil produced by Mexico is above that mark, though its high production is something to flag.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Last week, the Mexican national company announced its latest financial and operational results, where it reported a net loss of MXN 52 billion (US$2.6 billion), about MXN 25 billion (US$1.2 billion) less than the same quarter last year.
According to the report, "This result is mainly explained by the cost of sales increase, the asset impairment, and the foreign exchange loss caused by the depreciation of the peso against the dollar in third-quarter 2022."
Despite the losses, Pemex also reported a nominal debt reduction of US$3.9 billion and a financial debt balance at US$105 billion. This was the result of support from the federal government of Andres Manuel Lopez Obrador and liability management operations. Throughout his mandate, President Lopez Obrador has shown total backing for Pemex by financially supporting the energy company and betting on the fossil-fuel industry.
On the upstream front, Pemex reported an oil output of 1.77 million barrels per day (BBL/d) during the third quarter (including condensates and partnerships). This is about 26,000 BBL/d higher than in third-quarter 2021. The individual monthly oil production pace for July, August and September are some of the highest in recent years, according to the company's monthly production results.
These outputs are the outcome of new field strategy wells at assets such as Ixachi, Tupilco Profundo, Itta and others. However, despite the increase in production coming from these fields, it is also important to highlight that output from the major Ku-Maloop-Zaap oil complex continues to decline. The KMZ complex provides 36% of Pemex's output, though its continuous decline will persist in impacting energy flows if new developments are not made.
Meanwhile, Pemex has shown positive results in the downstream sector, as it has been refining more. In the third quarter, the Mexican company, which has a domestic refining capacity of about 1.6 million BBL/d, processed 807,000 BBL/d. This is about 16% higher than in the same period last year.
The stronger utilization rate came from the 340,000-BBL/d Salina Cruz refinery, the 315,000-BBL/d Tula refinery, the 245,000-BBL/d Salamanca refinery, and the 240,000-BBL/d Minatitlan refinery.
Refined products output also stood 14.4% stronger in the third quarter, when compared with the same time last year. Nevertheless, fuel oil production was about 33% of the total output of refined products. Since the introduction of IMO 2020, fuel oil with sulfur contents above 0.5% cannot be used as international shipping fuel, impacting demand. It is unclear if the fuel oil produced by Mexico is above that mark, though its high production is something to flag.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
