The drop in crude oil prices and the company’s deterioration impacted Petróleos Mexicanos’ results in the last quarter of 2022. From October to December last year, the oil company reported a net loss of 172,567 million pesos (about 9,374 million pesos). Dollar). In its financial report sent to the Mexican Stock Exchange this Friday, the oil company attributes this net loss to an increase in manufacturing costs and an increase in depreciation offset against the gain from the peso’s appreciation against the dollar. Although the oil major reports millions of dollars in losses, that loss is 11% lower than the same period in 2021. “2023 presents us with important challenges to consolidate our results. We are proud to say that we are reporting good results, higher production, higher earnings and lower debt compared to last year,” commented Pemex CEO Octavio Romero at a conference with investors this Monday.
Although the oil major grew revenue in the final quarter of the year, the burden of its cost of sales and impairment impacted its financial results. Carlos Cortez, Pemex’s CFO, reported that costs were also up 55%. In addition, depreciation of fixed assets of 146,700 million pesos was recorded during this period, up from 39,500 million pesos in the same period last year. In the last quarter of the year, total revenue from sales and services increased 16% compared to those recorded in the same period last year.
For the full year 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 have good results, increased production, higher revenues and a report lower debt compared to last year,” Romero pointed out. Thanks to direct support from López Obrador’s government and a lower tax burden, the semi-public state ended last year with financial debt of $107.7 billion, down 7% from 2021.
Treasury director Cortez commented, without giving many details, that they have the support of the federal government as well as the financial institutions for the upcoming debt maturities. “The strategy consists of three parts, the orderly return to the markets, the refinancing of bank lines at our house banks and, if necessary, support from the federal government,” he said. Given the liquidity needs to meet about $10 billion in outstanding payments this year, the company has already taken a number of actions, from issuing bonds to applying for funding from various banks.
Pemex executives affirmed that with their recent acquisition of the Deer Park refinery in Texas, they have significantly increased crude oil processing capacity. In 2022, this refinery processed 276,000 barrels per day — 83% of which was converted into high-value products like gasoline, diesel, and jet fuel — and its net income was $956 million. Regarding the fire at that refinery, Ángel Cid, Pemex’s General Director, Exploration and Production, said on February 23 that there were no injuries and that the refinery center was partially operational. Referring to the explosion in Minatitlán, Veracruz, which has already resulted in the deaths of two workers, the director indicated that the appropriate measures are being taken so that this type of incident does not happen again. In 2022, the company recorded 37 safety and six environmental risks.
At an operational level, production of crude oil and condensates was 1.79 million barrels per day and processing at local refineries exceeded 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 funds to refinance the oil company’s debt, the purchase of Deer Park and the construction of the Dos Bocas refinery in Tabasco explain the momentum that the president has put in the revitalization of Pemex since the beginning of his tenure tenure, all indications are that he will double that commitment.
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