Pemex Closes Q3 with Financial Losses, Slightly Lower Oil Production

---

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Petroleos Mexicanos SA de CV (Pemex) (Mexico City) released its third-quarter 2024 results, reporting a loss of 161.5 billion Mexican pesos (about US$8 billion), more than double the losses registered during the same period last year.

According to the company, this was the outcome of lower sales, an increase in the impairment of fixed assets and a foreign exchange loss due to the depreciation of the Mexican peso against the dollar, which was the main cause for the financial loss.

This result emerged even when the government supported Pemex by decreasing its taxes and duties. The government waived its profit-sharing duty for May, June and July this year and decreased the rate to 30% for the year.

On the upstream front, Pemex registered output of 1.764 million barrels of oil per day (BBL/d) during the third quarter, about 5.7% less than the same period last year. This was the outcome of natural declines in oil fields like Maloob and Zaab, some of the largest in the country, and delays in installing marine infrastructure and completing complex wells.

Heavy crude production, Pemex's flagship grades, stood at 52% of the total output, followed by light oil with 25% and 15% condensates. The remaining volumes were for extra-light crude.

The Ku-Maloob-Zaap complex continues to be the largest crude producer, accounting for 33% of Pemex's total output.

The former government and the current administration of Claudia Sheinbaum seek to reduce Pemex's oil exports, while focusing on more refining. Their objective is to meet domestic fuel demand and cut imports.

On natural gas, the company produced 3.749 million cubic feet per day in the third quarter, about 6.8% less than during the third quarter of last year.

Meanwhile, Pemex boosted crude refining across its units to 962,000 BBL/d during the third quarter, which was higher than the 778,000 BBL/d recorded for the same quarter last year. This was the outcome of improved performances at the Caderyta, Minatitlan, Salamanca, Salina Cruz, and Madero refineries. Throughput could improve as derates continue at Salamanca and Salina Cruz due to company financial constraints, according to Industrial Info.

The company reported that the new Dos Bocas Olmeca refinery, with a capacity of 340,000 BBL/d, operated at 56,000 BBL/d during the last quarter. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can click here for the project report and click here for the plant profile.

This is a step forward for Pemex, which expected to start commercial operations at the plant earlier this year. However, Pemex halted testing and commissioning activities October 27 following failures at the cogeneration units, which shut the entire plant. The refinery is expected to be offline for 15 days; testing may resume as early as November 10.

"While Pemex has noted some throughput from Dos Bocas, IIR has not yet marked any units commercially operational," said Hillary Stevenson, a senior director for energy market intelligence at Industrial Info. "Test runs would have produced some products and consumed some crude. Power generation has proved to be a challenge for Dos Bocas, preventing the consistent and reliable operation of the units that have completed testing activities, preventing them from being fully commissioned."

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) 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).