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Pemex (Mexico) reduces debt and records US$6.4bn profits in 2023

The Mexican national oil corporation Pemex has released its 2023 results, posting a 5% increase in its liquid hydrocarbons production of 1,875 kb/d, with more than one third of the total production coming from new extraction wells. The group processed on average 1,052 kb/d of oil in 2023 (including the Deer Park refinery in Houston, United States) and plans to commission the Olmeca refinery in the coming weeks.

Pemex recorded a 10% increase on its net income to MEX110bn (US$6.4bn) compared to its 2022 results, making it the second consecutive year that the company registers a profit since 2021. The group succeeded in reducing its debt by MEX1.7bn (US$102m) to MXN106m (US$6.2m). Pemex managed to post profits thanks to a series of government support, such as the application of tax incentives as well as a series of direct financial contributions, which have allowed it to halt the operational and financial deterioration of the oil company.

Pemex has been facing financial difficulties in the last 8 years, mainly due to weak hydrocarbon prices, a decrease of its oil and gas production, and the low operating efficiency of its refineries. In 2021, it posted a loss of US$10.9bn, i.e. 56% lower than in 2020, after several years of constant increase.